• Credit cards enable financial freedom for many.credit card image by feisty from Fotolia.com
  
  Credit cards are important facets of some people's financial lives. They enable people to make major purchases and pay them back at a more convenient time, and they often are used when renting an apartment or buying a car. Having a good credit score also can help when applying for loans, so it is crucial to understand credit cards before applying.
  
  

Evaluate Your Finances

• Make sure you have enough money to pay for your credit card purchases.Cash image by Greg Carpenter from Fotolia.com
  
  It is important to look at your financial lifestyle. Make sure you are ready for the responsibility of a credit card. When using a credit card, you are borrowing money against the card. This money has to be paid back--or the credit card company will report your lack of payment to a credit bureau. Even if you purchase inexpensive items using the credit card, the amount should be paid back in full when the credit card company asks for payment. According to MSN.com's Money Central website, you should have enough money to pay back your card's expenses. This allows you to fully enjoy the freedom that comes with having a credit card.
  
  

Understand the Card

• Research a credit card before applying.credit card image by jimcox40 from Fotolia.com
  
  Research the credit card for which you are applying. Do not simply apply to any card offer; make sure you are applying to a valid credit card company. You can visit your local bank and apply for its card, or complete a website application from a major bank, such as Chase, CitiBank or Bank of America. Read about each card carefully to determine what will work well for you. Some cards offer travel rewards, cash back on qualifying purchases or student discounts. Evaluate the terms and conditions of each card, as some have higher interest rates than others.
  
  

Information

• Have your identification on hand.student with papers image by Petro Feketa from Fotolia.com
  
  Have your information ready when applying. You'll need your Social Security number, address, driver's license and sometimes employer information. Some cards allow people to apply with a co-signer, so you'll need the same information for that person as well. Credit card companies sometimes ask about salaries and living expenses. Make sure to provide correct, honest information.
  
  

Reporting

• Bankrate.com reports that a credit card company sends your payment information to the major credit bureaus. When the credit company reports your payments and use, the bureaus track this information and create your credit score. A good credit score enables you to take out loans in the future.