How to Guarantee That Your Credit Card Application Will Be Accepted
Contributed by Deborah Zeitler
Credit Card Applications 101
Filling out a credit card application might seem to be a really simple task, but the affect that it could have on your personal credit history can be quite complex. Learning a few facts now about how credit works, before you fill out an application, could make a dramatic difference in your financial future.
Approval of your card application depends on your credit history
In today's information age, your credit history is an open book to any credit card company you're sending an application to. The facts about your credit history are gathered and stored by 'credit reporting agencies', which then provide this information to credit card companies. But just as a credit card company examines your credit history and completed application to determine whether or not they want to do business with you, you need to also examine their application form, to determine whether or not you want to do business with them!
Why the Federal Government is interested in your application for a credit card
All of the information you need to decide whether or not a credit card would be right for you, is included right there on the application form. The Federal Government requires credit card companies to clearly state the credit terms so that you can make an informed decision. If you don't understand all the terms, the Federal Reserve maintains a web site that explains them in easy to understand language.
How to choose the right credit card
Everyone uses credit in different ways, and not every card is right for everyone. Of course you want to choose a card that has a low Annual Percentage Rate, but there are other things you should look for also. If you don't pay off new purchases on your credit card every month, look on the credit card application to see whether or not its Annual Percentage Rate is based on a fixed or variable rate. If it's variable, this means that the stated APR will change from time to time.
