A credit card can be a great financial tool, but it also is a big responsibility. Applying for and receiving a credit card generally is an easy procedure. Offers from credit card companies arrive frequently in the regular mail.
Many people, particularly first-time users, do not fully understand the implications of a credit card. They may charge more than they can repay. This can damage a credit rating and create credit problems that can be difficult to fix. Credit card and identity theft can be a major issue when applying for credit.
Before you submit a credit application, obtain a copy of your credit report from one of the three major credit reporting agencies to make sure it is accurate.
Chad Cowdrey
September 30, 2005