Credit cards are a common method of payment with many benefits for their users. They are convenient in emergency situations, they can be used all over the world, you can use them for online purchases and they can even improve you credit rating. Applying for a credit card requires certain steps which both the applicant and the issuer need to take. The issuer will check your credit rating to estimate whether you are capable of repaying the credit card debt or not. It is up to you to maintain your credit rating as high as possible and to make sure that you actually are capable of repaying the debt. In order to make credit a card your friend rather than a foe, there are certain things you should avoid.

First of all, before you apply for a credit card, you should not let your credit score slip. It is important because if your credit rating is poor, you are very likely to be rejected by a credit card issuing company, or in some cases they can issue a credit card to you, but it will have large interest rates and will not be convenient for debt repayment.

How to choose right credit card?

Before you decide to apply for a credit card, you should explore as many options as you can before choosing the right one. It is not recommended to apply for different credit cards with too many different issuers, but you should rather explore all the offers before you file the application.

Once you decide to apply for a credit card, you must not forget to check your credit report for mistakes. This may seem too obvious, but it can happen that your name is misspelled, or if you have a very common name – there can be the credit details of someone else on your credit report. Problems such as this one can cause your credit card application to be rejected, and even worse, you can be accused of fraud.

If you already have a credit card, you need to make sure not to use too much credit if you want to apply for another card. Every new credit card issuer that sees over 35% credit utilization will consider you as a high risk for issuing a card.

Improve credit rating

Never co-sign any loan for someone whose credit rating is poor and who is financially irresponsible. Due to someone else’s irresponsibility, you can end up not only with repaying someone else’s debt, but your own credit score can end up significantly lowered.


Once you obtain a credit card, make sure to repay the debt on time. This is very important for several reasons – first of all, every credit card bears the interest you need to pay in case you miss to repay the full debt on time, and these interest are usually quite high. Second, if you fail to repay the debt on time, in hurts your credit rating, which later leads to a series of consequences if you wish to apply for a new card or for any other loan.