Credit cards are simple to use, but applying for one can be a tricky process. Below are answers to some of the most frequently asked questions about the process.

It's the truth. Everyone loves a bargain. Likewise, nobody likes to find out they've paid too much. It's true when you're buying, and it's true when you're borrowing. Who doesn't want the best interest rate possible?

Your credit card is a powerful tool for the management of your financial life. Your credit card is a powerful tool for the management of your financial life. It can help you to extend the value of the products and services you need by obtaining them before paying for them. It can reduce the need for cash or check in places far from home, and allow you to conduct personal and professional business by phone, mail or Internet over long distances.

"I don't remember charging those items. I've never even been in that store." Maybe you never did charge those goods and services, but someone else did, someone who used your name and personal information to commit fraud. When imposters take your name, Social Security number, credit card number, or some other piece of your personal information for their use, they are committing a crime. Identity theft is the fastest growing financial crime. One of the first things the FBI discovered about the September 11 hijackers was that as many as half a dozen were using credit cards and driver′s licenses with identities lifted from stolen or forged passports.

Are you tired of fighting high credit card fees? Why not lower your interest payments by transferring your balance to another card. Balance transfers are one the smartest and easiest ways to reduce credit card costs. Just be sure you understand the terms and conditions of the new card, so you can maximize your savings.

Getting approved for a credit card can be difficult without a positive credit history working in your favor. It's a Catch-22: To obtain a credit card, you need a good credit history. But to have a good credit history, you need to establish good credit!

Credit bureaus are credit reporting agencies (CRAs) that collect information about consumers and provide it to banks, credit card companies, employers, prospective landlords, etc. The three major CRAs are Experian (http://www.experian.com/), Equifax (http://www.equifax.com/) and TransUnion (http://www.tuc.com/).

Credit card companies are increasingly dangling reward cards to lure new customers, offering cash back and points that can be exchanged for merchandise, airline miles and hotel stays. Though appealing, reward cards may not always be the best option.

On average, 1.4 million people claim bankruptcy every year. Declaring bankruptcy is a fact of life for many Americans. In fact, an increasing number of bankruptcy filers are well-educated, middle-class baby boomers with an overwhelming level of credit card debt. However, bankruptcy is not limited to this class. It can become an option for anyone who has reached a point where they can no longer support the debts they have incurred.

Buy now and pay later. It′s become the American way. There′s no doubt that a credit card can be a powerful and useful tool. However, as more and more Americans discover every year, too much of a good thing can lead to big trouble.