From the beginning of the 1970’s, banks wanted nothing more than the chance to introduce the public to the credit card, which was a new concept back then. Before, people would open a charge-account at their favourite shops and stores, but that was about as far as credit went in those days. Millions of unsolicited credit cards were sent out to people, giving them the ability to buy whatever they wanted then and there. Many of them were naive to the implications of using this new resource. Lots of people got in trouble, overextending themselves and facing debt that might take years to pay. Today, both banks and consumers are smarter. There are a few thing that you need to be aware of when applying for a credit card. Applying for a credit card is ultra easy these days. You can apply for a credit card online and be approved in just minutes. What you may not know is that as soon as you've entered your information and submitted it for approval, the issuing bank runs a credit check which determines what your lending rate will be.

If you do not have a credit history, or your credit record is poor, you may well get approved, but the lending rate may be astronomically high. You must be sure to read the finer print before signing for a credit card. What's the APR? Should you be late on a payment, how much is the late fee? Is the rate offered an introductory rate which reverts to a much higher rate a few months down the road? It would be wise to get answers to these questions before your final decision. Otherwise, your initial excitement in receiving the credit can turn into future disappointment and a worse credit rating.

Some banks offer a balance transfer arrangement, whereby you can consolidate other credit card debt into a single payment to their company. This can be a good solution, assuming your credit is good and you can afford the monthly payment. Again, check for introductory rates, the APR and late fees.

When you apply for a credit card, keep in mind that you're making a serious commitment. Your credit rating is important. Getting into a position where you are late on payments or can make only the minimum payment each month is not desirable. You also need to realize that if you are late, even once or twice, both your lending rate and the dollar amount of a late fee will increase.

Finally, do not assume your payment date remains the same each month. Your credit card provider may adjust the billing cycle, which may result in your usual due date of the 10th of the month becoming the 9th. Be sure to check you statement monthly or you could end up with a late fee and perhaps a higher rate.

Be a smart consumer when you apply for a credit card. You'll then build a good credit rating and enjoy the many advantages of credit.