Types of Standard Credit Cards

credit card

So, you would like to acquire your first credit card? Or perhaps you would like to acquire an additional credit card.  Today, there are numerous options when it comes to finding and signing up for one. There are also benefits to having a credit card as long as you use it responsibly.

Standard credit cards are numerous and vary depending on the card limit, the rewards offered, and the fees required.  Two types of standard credit cards are store credit cards and bank credit cards.  Store credit cards tend to have higher interest rates while bank cards are more likely to have average or lower rates.  When seeking a credit card to sign up for, you should take a number of things into account. Some of the things you should be looking at include the credit limit on the card, whether it has annual fees or not, what kind of rewards it offers (if any) and are all the features you require and want included on the card.

Once you have your eye on one that meets your criteria, it’s time to apply.  You can apply for a standard credit card online or at your bank.  Some of the information you will be required to submit include your basic biographical information, recent work history and income.  Your personal information will determine whether you get the card or not and if you do qualify, it will determine the credit limit on the card.  Your credit history will also determine what you qualify for.  If you have no credit, it will be hard to establish it at first and you may have to try applying for several different cards before you qualify for one.  Having a fair credit history may limit your choices too, but you have a better chance at getting a card you apply for with fair history than you do with none.  Having a good credit history opens many doors when it comes to qualifying for a credit card or loan.

Once you are done applying for the standard credit card of your choice, you will have to wait up to a few weeks to hear if you acquired one or not.  If you qualify for a card, it will arrive in the mail or at your local bank and you will need to activate it by either visiting the bank in person or calling a toll-free number.

If you have no credit history, the best thing you can do once you have a credit card is to use it a lot and pay off the balance in full every month.  Yes, it is possible to rack up your card and only pay a small minimum payment each month, but this can get out of control pretty quickly.  For one, you will need to pay interest on any balance remaining which means anything you purchased with the card will end up costing a lot more over time if you don’t pay in full every month. Not paying the full balance could also harm your credit rating in the long term and that could affect your ability to acquire loans or credit down the road.