Before you apply for credit card online know that all so called “credit cards” are not created equal. Get informed so you can choose the right card for you.
While there are literally hundreds of individual credit cards to choose from and thousands of perks and fees to consider, there are just four basic types of payment cards that we use, and tend to call credit cards: the store card, universal card, the ATM card and the debit card.
An ATM card is a card to be used in an automatic teller machine. This is the card that you use to withdraw money, at a machine, out of your bank account using your PIN number. To use an ATM card you must have a savings or checking account that has some money in it. This is not a credit card because you are not being extended credit. These will not have a Visa or MasterCard logo on the. They do not help you build your credit.
A debit card is similar to an ATM card in that you use it to access money in your bank account. However, this card is not limited to use at an ATM machine. You can also use these cards anywhere that Visa, or whatever company logo is on it, is accepted. Though you may select the “credit” button on the machine at the store and sign your name as authorization, these are not truly credit cards because you are accessing your own money when you use them, not asking for credit. Using debit cards does not help you build credit.
Before you apply for a credit card online know that a store card is a credit card – that is a card that lets you shop based on a promise to pay – but that you can only use in a specific store or a chain of stores. Generally, they offer similar terms to universal credit cards, but a bit less versatility. Using a store credit card does help you to build credit.
A universal credit card (like a Discover or Visa) is a card that extends you a credit limit that you can use for purchases, just like a store card. But these cards are accepted at millions of places, live and online. You can use your MasterCard anywhere that accepts MasterCard, American Express anywhere that accepts American Express and so on. These cards come in many different flavors, with different fees, different perks and much variety. You can apply for the credit card online. But the thing that these, and store cards, have in common is that they are issued based on your credit, allow you to pay with money that you don’t have, and are subject to various legal rules as well as the Credit Card Act of 2009. They do help you build your credit, or hurt it if you aren’t careful.
If you are looking for a credit card for no credit instant approval then applying online is an easy way to try to get one. When you apply online you get anonymity as well as speed, keeping you feeling private if things don’t go your way and giving you a fast answer so you know for certain. And of course online applications aren’t reserved for bad credit; you can get a zero percent credit card online just as easily. All you need to do is find the card you want, fill out the application online (they use security protocols to keep your information safe) and your card will come to you in the mail.
Remember, though, that one of the great things that separates true “credit cards” from a debit card is your ability to use them to manage your cash flow. In fact, if you are careful you can use them almost like a payday loan, buying things that you need anywhere from 3-7 weeks before you get paid.
Let’s look at how this works.
When your new credit card billing period begins you have about 4 weeks in the billing period. Then, after the billing period ends you have 2-3 weeks to pay the bill. So, say that you are running short on funds this week, but now you really need to pay $100 for something and you just don’t have the cash, though you’ll have it when you get paid – in 2 weeks. You can pay for that item with your credit card, then pay off the credit card when the bill arrives, after you have been paid. No problem. No interest. No high payday loan fees.
Advertiser Disclosure: The credit card offers that appear on CreditCardIdeas.com are from credit card companies from which this site receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers.
Editorial Disclosure: The editorial content on CreditCardIdeas.com is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.