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1. Why do I need a card and how would I use it?
Figure out what you need the card for and how you plan to use it. Is it for necessities? A big purchase? Day-to-day use? Figuring out why you need credit can help you control your spending.
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2. What kind of spender am I?
What kind of card user are you? If you never carry a balance, then you might care most about features like rewards or discounts. If you do carry a balance then you want to know the price of the card – the cards’ interest rate (APR) and fees. If you’re not careful these can really add up, so take the time to shop around.
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3. Review credit report
Before you submit a credit card application, order a copy of your credit report to make sure all of the information on it is correct. Go to www.annualcreditreport.com to get your copy, and make sure to fix any wrong information. (See Protecting and Improving Your Credit Score for more information).
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4. Research credit cards
Make a list of the features you want from a card, and compare different cards interest rates and fees. All credit card offers have a Summary Box that describes the cards’ interest rate and fees. By plugging the numbers into the EverydayMoney Credit Card Tool you can easily compare the costs and benefits of different cards.
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5. Apply for card
Pick the card that’s right for you. Don’t forget to research local banks and Community Development Credit Unions (CDCUs), as they often charge lower rates.
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6. Keep to your budget
When you charge a purchase it sometimes feels like you got it for free. But remember you have to pay the bill eventually. Make sure they payments on what you buy fit into your expenses.
| With all the credit card offers out there, it can be difficult to choose the right card for you. Use these tips to make it easier. See 8 tips for managing credit cards for more information. Choose what's right for you You have to know how you’re going to use a credit card before you can decide what card is right for you. Different card features will matter the most to you depending on how you use your card.
Shop around National companies, stores, local banks and credit unions all offer credit cards. The fees, charges and benefits for these cards are different. When you're choosing a card, shop around. Compare interest rates, annual fees and late fees and read the fine print to see how and when the terms of your card could change. Credit cards offered by stores are often easier to get for people with a limited credit history. Usually, when you apply for a store credit card, you get a one-time discount on your purchase that day, and you often get other rewards like loyalty points or other discounts. In exchange for these benefits, these cards often charge higher interest rates and finance charges. Make sure that, if you are going to carry a balance, the benefits are worth the additional cost. Compare offers You can use this chart to help you compare credit cards. Click here to print the chart ( Adobe® Acrobat® Reader® required). For an explanation of the terms in this chart, see Credit card terms explained.
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