Category: General

8 Tips to Get Approved for a New Credit Card

These days having a credit card can be very useful and almost a necessity at times, especially if you want to get cash now. If you are interested in getting a new credit card, there are quite a few things you can do to improve your chances of approval. There are certain things that lenders look for in credit card applicants that can help you get your new plastic. These tips can go a long way towards helping you establish your new line of credit, which can boost your overall score.

  1. Apply for Only One Card at a Time

You should only apply for one credit card at a time, because otherwise you could actually hurt your credit. Each time you submit an application, the lender runs a credit check, which counts as a hard inquiry. Don’t apply for more than one card within a two week period. It might seem silly, but it will help you preserve your rating.

  • Look at Your Credit Report

Before you start applying for credit cards, take a very close look at your credit report to check for errors. Even one small error on your report could prevent you from getting the card you want. These mistakes do happen, which is all the more reason to stay on top of your credit report. This is something you should do at least once every year. Make sure to report any of these mistakes to the corresponding agency so you can have them removed.

  • Find Cards that Match Your Needs

Some credit cards are going to be better than others for you, so it is important to spend some time doing your research. If you are a student, you might want to get a credit card that is specifically for college students. You will find that certain cards can help you save on interest while others are more about getting rewards. It is crucial that you learn the details of each card so you know what they are all about before applying.

  • Don’t Take on Any New Debt

When you are in the process of applying for a new credit card, you should refrain from taking on any fresh debt. This means getting a loan of any kind, at least for the moment. Most lenders don’t want to give a new credit card to someone who has a significant amount of active debt.

  • Get a Co-Signer

If you think you might have problems with getting approved for a credit card, you can always ask someone you know to be a co-signer. This person will essentially be responsible for handling your debt if you cannot pay for whatever reason. Keep in mind that the co-signer must have good credit, adequate income and other qualifications. If you can locate someone to be your co-signer, it will almost certainly boost your chances of approval.

  • Apply with a Credit Union

Some credit unions are more lax about approving credit card applications, so this is something you should keep in mind. Take some time to find a good credit union in your area to apply with. There are a lot of these financial institutions, so you don’t want to choose just any of them. You also need to look at the specific terms of the loan very closely. Just because you can get approved for a credit card doesn’t necessarily mean it’s a good overall deal.

  • Be Honest on Your Application

You never want to lie about anything on a credit card application, because doing so just guarantees that you will get rejected. You’ll have a very hard time getting a credit card if you lie about any personal or financial details on your application. Some people think they can get away with fudging the truth a bit, but it rarely works in their favor.

  • Don’t Cancel Any Current Credit Cards

If you already have one or more credit cards, do not cancel any of them while applying for a new one. Believe it or not, cancelling a card can hurt your credit a little bit. It can also reduce your chances of being approved for a new card. Wait until you have been approved to do this if you must.

When you are gearing up to get a new credit card, there are quite a few things that you will need to keep in mind. These tips can really help you with getting what you need in the best possible way. With all of the potential mistakes that you can make when going about getting a new card, it is crucial to follow these tips. In the end you will be glad you decided to do this because of all the time and aggravation you will save yourself in the end.

10 Common Credit Card FAQs

Getting a credit card is a very big deal, so it is important to get answers to any questions you might have. Even the most basic information concerning these cards can help you out in a very big way. The last thing you want to do is rush into getting a credit card, because you’ll like end up regretting it. The right credit card can be of great help at times, but you have to educate yourself first. The information in this article will go a long way towards helping you in the future with your credit overall.

  1. How Exactly Does a Credit Card Work?

Most people think they know how credit cards work, but some of them are victims of common misconceptions. When you use a credit card to make a purchase, you will have a small period of time where you can pay your bill without incurring any interest. This is called the grace period and it usually lasts about 30 days. After the grace period is up, you will have to pay interest on the charges you have made.

  • Why is Having a Credit Card a Good Idea?

There are many reasons that you should consider obtaining a credit card, including the fact that it can improve your credit. If you are responsible and consistently pay your balance on time, you can raise your score. This in turn will help you to secure future loans for whatever you need, including a new car or even a home. When you have an emergency expense to pay for, it’s always better to have a credit card than not.

  • How do Secured and Unsecured Credit Cards Differ?

When you are looking for a credit card, there will be secured and unsecured options to choose from. A secured credit card requires you to use cash as collateral to ensure that your debt will be paid back one way or another. This is a great option for those who haven’t established their credit yet. With unsecured credit cards, you won’t have to put down any collateral. If you are getting this type of card for the first time, you will probably be given a fairly low limit.

  • What will my Interest Rate be like?

The interest rate that you are going to get with your credit card depends on a number of factors, including your credit score and the card you choose. The better your credit rating is, the easier it will be to get a card with a lower rate. You can avoid having to pay interest in the first place by taking care of your balance within the grace period.

  • What is a Minimum Credit Card Payment?

The minimum payment is the lowest amount you can pay on your credit card. It is typically calculated based on a percentage of your total balance. It is crucial that you try to pay more than the required amount so you can avoid getting stuck in debt for a long time. If you do not pay at least the minimum on your card each time, your credit will suffer as a result.

  • What Rewards Can I get with a Credit Card?

Not all credit cards offer the same rewards, which is why it is so important to look at the terms of each card before applying for one. A lot of credit cards will give you cash back or general points that you can use for different things. Other cards will provide you with points that you can use at certain hotels or airlines for flights.

  • How Many Credit Cards do I need?

You should start off with getting just one credit card to avoid damaging your credit. The fact is that you can have only one card your entire life and be perfectly fine. There is no reason you absolutely need more than one in most cases

  • Can I Use a Credit Card to Pay off Existing Debt?

Some people have great success using credit cards to pay off existing debt. Make sure to get a card with a 0% interest rate. It is only an introductory rate, so you’ll be required to pay interest eventually.

  • What Happens if I’m Late on my Credit Card Payment?

If you are late on a credit card payment, you will probably be charged additional fees and your credit will take a hit.

  1. Can I get a Credit Card with Bad Credit?

It can be a challenge to get a new credit card if you have bad credit, but it’s possible. Look for secured credit cards to boost your chances of approval.

While having a credit card can be a real life saver sometimes, you definitely need to take it seriously. It is important to review these questions and answers before applying for a card of your own. This will increase your chances of getting all the benefits without any negative consequences.