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Having a credit card means a lot for the user. Unfortunately, because of the proliferation of credit card companies in the country, it would seem that we can just have a credit card and not worry about the consequences. Thats where we get ourselves into trouble: credit card companies will give you charges you are not aware of, and you may end up paying a lot of money in fees. So before you sign up for any Credit Card Application, be sure to read through these simple credit card FAQs.

How many credit cards do I need to have?

The maximum number of credit cards you should have are three, considering varied factors. Having more than three credit cards will mean you have to remember more than three terms and conditions. You will just get confused on when to pay, what to pay and why you would pay them. Added to that is the danger of being declined on your other applications with regards to mortgages or even online credit card applications. These companies will deny you their services since you already have three credit cards to take care of. It would be irresponsible for them to give you another card and then have you not pay them for the services they gave you.

What is an APR?

APR stands for annual percentage rate. This term refers to the rates that your credit card would have on different transactions. These are the rates that your credit card company will quote you for purchases. The rates that you will incur for your cash advances will be completely different from the rate for your balance transfer between two credit cards and so on. Its going to be confusing at first, but just remember that these rates are different from one another and you have the right to know them to calculate your expenses.

Theres an offer of 0% intro APR? Should I jump in considering the current APR rates?

The 0% APR credit card application would only refer to the purchase rate. If you only use your credit card to purchase stuff, thats ok. However, if you use your credit card for other purposes such as cash advances or balance transfers, you may be surprised at how much you have to pay even when you are guaranteed the 0% intro APR in your credit card application. Another downside for the 0% APR is when the introductory offer expires. Aside from worrying about paying more than 10% in interest, the problem gets even bigger if you have some balance from your 0% APR, since it will be rolled to the next months bill and it will be applied with the necessary interest rates.

I have bad credit; can I still get a credit card?

Yes. Credit card applications for bad credit is still possible with certain conditions. You still need to have some collateral before the company gives you a credit card. The collateral could be money or your house. You credit cards ability is quite limited, but it still gets the job done.

Copyright 2006; Patrick MacGregor. This article may be reprinted on the terms that it remains unchanged and the links stay active.

Patrick MacGregor has written numerous articles on credit management and is a collaborator of a site that offers news and information on credit cards. If you're looking for more information and want to fill out a credit card application, visit his site today. Or if you're looking for more information on credit card problems check out this article.

posted by gektal  # 1:49 PM