If you’re looking to add a credit card to your wallet to either make your life more convenient or build up your credit score, you’ll first need to know how to apply for a credit card and how to boost your odds of approval. Do some research, read the fine print, and verify your credit before you fill out an application.
Consider Your Finances
Make sure you’re not adding something you can’t really afford, and also make sure doing so will positively impact your credit.
To help make sure your wallet can hold another card, take a look at how much you have in the bank, your income, and other aspects of your finances to make sure a new credit card is the right thing for you at this time. Can you really afford to pay for the charges you will make? What about the fees?
Know Your Credit Scores To Boost Your Odds of Approval
Your budget and spending habits are important, but they are not the only things you should consider before filling out the application for a new credit card. Your credit also plays a major role when it comes to applying for credit cards.
Of course, there are some steps you can take if you find that your credit score isn’t where you’d like it to be. Review your credit reports for any errors that need to be corrected, pay down any debts, or make sure to limit any new credit reviews that would prompt new hard inquiries on your reports for the time being.
Consider Which Card Is Right for You
This will give you a better idea of what types of credit cards you would likely qualify for. As an example, if you find your credit scores are fairly low, you can get a credit card with no credit, such as a secured credit card. On the other hand, if you’re credit scores are pristine, you may want to find a rewards credit card that will offer you perks for your spending, whether that’s cash back, travel rewards, or something else.
Read the Terms & Conditions
You have a right to see this information first before you make a commitment to a lender. Knowing the details can help you avoid any costly or unpleasant surprises in the future.
Fill Out an Application
Make sure you don’t fill out multiple applications at once as not creating too many hard inquiries at one time is important to boost your odds of approval. Applying for too many at once will make you look like a very risky borrower, which lenders will avoid
Use Your Card Wisely
Once you have been approved, practice good habits with your new credit card. This can have a positive effect on your credit score as well as your finances.
An important thing you can do is to maintain a good payment history, which accounts for 35% of your credit scores, by making all of your payments on time. Keep on focusing on keeping your credit utilization rate low as well as this is the second largest influencer on your credit scores at 30%. Experts recommend keeping your debt levels at no more than30% of your credit limit for the best effect on your credit scores.
