Almost everybody has a credit card nowadays, but did you know that before applying for one, you should consider some pretty important factors, in order to end up with the best card, suitable for your needs?
Below you will find a quick guide on how to apply for a credit card, which should make things easier for you.
First of all, it’s worth mentioning that you should reconsider this if you have a bad credit score, as creditors won’t approve your application!
Some of the most important aspects are the age, which should be at least 18. Also, applicants should have a stable source of income, unless they can come with a co-signer. By this, creditors want to ensure that applicants can make payments on time.
Pick a suitable type of credit card
Basically, you should determine what type of card you need, and, most important, you can afford. For example, if you travel a lot, you can go for a travel reward credit card, with several included perks. And the list can go on, more details being available at the institution you choose.
On the other side, if you’re trying to repay your existing debt, you might as well go for a balance transfer credit card, with a zero percent promotional offer.
Compare all available cards
Finally, after deciding on what type of card you need, you should check the options you have.
Look at fees, charges, interest rates and, if you’re some rewards, check those programs as well. Finally, see if you can add other cardholders as well.
Settle the balances on your current credit cards
Remember that creditors don’t like high credit utilization rates. These are the ration between the credit that’s available and the one you’re using. If you know that you keep high balances, make sure you reduce this, in order to improve your credit score.
Our recommendation is to be very careful when applying for a credit card, especially if you apply for more creditors at once!
If too many of them inquire about your credit history in a short period of time, it will have a negative impact on your overall credit score. In a nutshell, it will appear that you’re having a great time getting an approval.