Applying for a Credit Card: A Complete Guide to Choosing and Qualifying for the Right Card

Whether it’s your first credit card application or you are adding a new card to your wallet to secure a particular credit card reward scheme, you can apply for the card of your choice online.

Before you make an application to a particular card provider or bank, it is worth taking time to understand the different cards that are out there, what rewards you can secure against what you spend, and how much you will be paying for the credit line if you have a monthly balance. Here is our overview of what you need to look out for to make sure you get the right plastic for your wallet.

APR or Annual Percentage Rate

If you run a balance on your credit cards each month then the annual percentage rate that you will pay for your balance is really important. APR covers the fees and interest that the card provider charges you for your debt.

At the lowest end of the scale APR should run between 10% to 12%, but there are cards out there with an APR of over 20%. If you pick the wrong card at an APR of 20% or more you will be paying far more than you need to for your credit.

Annual Fees

There are plenty of credit cards available on which there are no annual fee. The simpler the credit card, the less likely there are to be annual fees. If your credit card of choice has a rewards program associated with it, then there are likely to be annual fees on the card.

The richer the rewards are - the more the annual fee will be. Annual fees will run from $25 up to as much as $350. Make sure you know if there is an annual fee on the card you think you want, because some card providers offer an introductory year with no annual fee but will then charge for subsequent years. The charge is simply made to your card.

Credit Card Rewards

Credit card rewards are a great way to make what you spend each month work harder for you. The card providers get more and more creative in what they offer and you can accrue some pretty big rewards if you are a big spender. Rewards vary from airline frequent flyer miles, hotel chain free nights, cashback offers and points that you can redeem for meals or gifts from a catalogue. Do your research to see what the best rewards are, based on what you expect to spend each year, and what will the most beneficial reward for your lifestyle.

Other Credit Card Benefits

Other popular credit cards include balance transfer credit cards that allow you to transfer unpaid balances on to your new credit card, at a fixed period of 0% interest. There are also charity cards available, that allow you to gift accrued rewards or sums of money to a charity of your choice.

You can research everything you need to know about credit cards online. Visit the main card provider websites for their range of cards.

Popular card providers in the USA today are Chase, Discover, Citi, American Express and Bank of America. Another great source of information are the comparison sites that keep up to date with the latest offers from all the banks and providers, so that you can see at a glance what the best APR, annual fees and so on are. Once you have made your final decision you can apply for your card online through the card provider's website.