How do you apply for credit cards?  This is a great question to ask because many of the individuals who apply for credit cards actually go about the process a little backwards.  You see most of us think we will apply for a couple cards at one time to make sure we get at least one of the cards, but there is a fallacy in this thought.  With credit cards you are going to be docked for credit score points each time you apply.  You will also get a reduction in score for any cards that have declined you during that process.  The credit card companies will also see that you are looking for another card, especially if you have applied online in the same day.  The credit report shows anyone who has run your credit.  So when a company sees this they are most likely going to decline on the basis that you have too much credit awarded to you already. 

So let’s look at how to really apply.  The first thing you need to do when you are getting ready to apply is look at your credit history and scores. You should order all three free credit reports.  You should also ask to see your three scores and the fico score during this process.  When you view your scores you are not being deducted points, and you get to see what the credit card companies are going to see.  This means you can analyze your report just like they would.  Things they look for include how much credit you have already, if you have defaulted on any credit, and where the median score is.  The median score is usually the score that is in the middle of the other two.  So if you have 700, 720, and 753.  They are going to take the 720 score to determine risk.  If you have more credit lines than you have income coming in the chances of you being declined are very high despite your scores and good standing.  The risk is a little high.  In some cases they may not decline, but offer you a different interest rate on the credit card or different terms.

This is the second thing to look for when you are about to apply.  What are the terms and conditions?  The interest rate is obviously important, but what does the company offer?  If you apply and your risk is found high will the company still offer the 9.9% interest rate or do they reserve the right to hike that rate up in order to award you a card?  Most often they are going to reserve that right.  The other terms and conditions to worry about are universal default which means they can raise your rate if your credit score falls by just one point.  So when you apply look over the agreement and compare the cards available.  Then apply online.  This is a fast and easy method that normally gets you an answer within a minute of applying.