ADVERTISING FEATURE – Applying for a credit card a guide for beginners

Published: 5th April, 2011
ADVERTISING FEATURE

Have you got a credit card? Chances are, you probably do. In 2009, there were 58.1 million credit cards in issue in the United Kingdom, with a significant proportion of those used on a regular basis. If you have never had a credit card before, though, it can often be a little bit confusing when youre thinking of a applying for one. Its not a complicated process, but it does require a little bit of thought to make sure youre applying for the right card and that the deal you go for is one that suits you.

The first thing you should consider before applying for a credit card is what you actually want to use it for. For example, are you hoping it to make regular payments or is it going to be for emergency use only? If you plan to use it on a regular basis, you need to be certain that you have the money available to meet your monthly payments.

The next thing to do is to do some research into the different cards available. There are many credit card providers and many types of card on the market, which means its highly likely your perfect card is out there somewhere. There are, however, a few things you need to consider. Firstly, although the chances are good that you will be approved for a credit card, there is no guarantee that this will be the case. For example, if you have a bad credit rating or are otherwise seen as a high risk customer (such as if you are unemployed or struggling financially), then you are less likely to be approved. Its important not to take this personally, though: the aim is to make sure you dont burden yourself with financial products you might then struggle to pay back as this could leave you in a worse situation in the long run.

You also need to think about how you plan to pay for your credit card. All cards come with a minimum monthly payment amount, which can differ depending on the card you choose. Think about what you can afford to pay each month so you limit your search to cards youll definitely be able to afford.

Also consider what sort of extras you might like from your credit card. For example, is it important that you get a free balance transfer period at the start of your new card? Are you looking for an Interest free credit card that offers a period during which you dont have to pay interest on your purchases? These are the sorts of offers that are available from Virgin Money, so its definitely worth doing a bit of digging to find the best deals.

You should also think about any benefits you might get from a particular credit card. For instance, Virgin Money offer a Charity Credit Card that gives you cash back on all your purchases. This money then goes to the charity of your choice so you can do your bit for others when you use your credit card.

If you want to operate your account online, you should make sure that this is an option, too. Virgin Money operates an online credit card system, so you can access your count either on the internet or over the phone 24 hours a day. This flexibility is really important to some people, so consider whether its something you need too.

Once youve got all these issues sorted and have decided on a card to apply for, your next step is to actually apply. You can generally do this online, or over the phone if you prefer, and the process if fairly simple. Youll be asked for information such as your name and where you live, as well as some questions about your financial status. This is used to work out your credit limit and whether or not you are eligible for a particular card, so dont be alarmed when the questions come up!

You can usually expect a decision on your credit card application really quickly often straight away, as long as all the information youve inputted doesnt raise any questions. After approval, youll be sent your card with a couple of weeks and youll be good to go. Then all you have to do is remember to never exceed your credit limit and make your monthly payments on time and you should have no problems. You could even take advantage of some of the great discounts offered by Virgin Money credit cards.