Applying for a new credit card isn’t as difficult as we make it out to be, in fact, going through applications for a credit card shouldn’t take more than 5 minutes and major credit card issuers typically inform you on your online application within minutes as to whether you’ve been approved for the card or not. Within this post, we’ll be going over some of the factors to take into consideration when applying so better ensure that your credit score doesn’t get infringed upon. So if you’re interested, be sure to read on for more information!
Editor’s Note: If you’re a seasoned veteran with credit card approvals, this is not the post for you. This will be more of a beginner’s guide to the basis of credit cards, but, if there are any tips you want to leave, be sure to comment in the comment section below! We’d really appreciate it.
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| Chase Business Complete Checking® | $300 or $500 Cash | Review |
| Chase Private Client | $3,000 Cash | Review |
| Chase Total Checking® | $300 Cash | Review |
| Chase College CheckingSM | $100 Cash | Review |
| J.P. Morgan Self-Directed Investing | Up To $700 Cash | Review |
| Chase Secure BankingSM | $100 Cash | Review |
Recommended Credit Cards:
- Chase Freedom Unlimited®
- Amex EveryDay® Credit Card
- Gold Delta SkyMiles® Credit Card from American Express
Best Times To Open A New Credit Card:
There’s no surreal distinction as to what time you apply for a new credit card. Whether it be Monday, or Wednesday, Saturday or Sunday. Applying on January has not difference than applying in July. (Unless you’re applying for a credit card with annual credit or anniversary bonuses attached), but that’s going on to something a little more intermediate than what this article entitles.
We know that Bank of America used to offer you the leniency of applying for multiple credit cards in a single day and combining it into one single inquiry, however, if you’re not careful, there’s certainly a recourse attached on your credit score. We recommend that you take it easy and apply for one credit card at a time. From the credit bureaus perspective, applying for multiple credit cards within a short period of time shows a sense of desperation for credit or signs of financial complications and will affect your credit score negatively. Of course, most credit card issuers this day and age have a set limitation towards the amount of credit cards you can apply within a period of time, so it’s worth taking that into consideration as well.
Plenty of credit cards offers sign-up bonuses that remain enticing; from as little as 15,000 Bonus Points to as much as 100,000 Bonus Points. Although offers can get pretty enticing, it shouldn’t warrant the fact that there are sometimes a heavy spending requirement attached, typically within a 3 month’s time-frame and with such urgency to get the bonus, I recommend taking into consideration any and all factors within your financial circumstances before partaking in such spending.
How Many Credit Cards Is Enough?
I’ve mentioned this plenty of times. There is no rule of thumb when it comes to how much credit cards is sufficient or how many credit cards should you have. It’s to your discretion as to how much cards you can really manage and if you’re building your credit score, it’s best to stick to fewer cards to do so. Also, be mindful of the credit cards you may possess with annual fees, especially when they’re upwards of $95-$550 a year.
We always recommend responsible usage with any credit card. When you pay on time, you have no debt and you’ll be able to bring your credit score to spec-and-span. One plus of having a higher credit score means the ability to apply for better cards and to achieve lower interest rates on not only other credit cards down the line, but on mortgages and car loans as well. The lower the interest rate, the lower the monthly payments you’ll need to succumb to each statement cycle.
Caution: Retail Store Credit Cards
We’ve reviewed plenty of retail/merchant credit cards from Comenity Bank Credit Cards to Synchrony Credit Cards. Most of the cards they offer push lackluster rewards, no sign-up bonus and nothing really enticing to lean on; however, there’s a rare few that offer sign-up bonuses from 15% Off to actual cash bonuses as well as some pretty surprising rewards structuring like 5x+ on every dollar spent or $20 in rewards for every so spending you make.
Now, although a majority of these cards come through with an attractive no annual fee, there are still some things you should watch out for: I know that people have had success increasing their credit scores with Comenity’s credit cards but without responsible usage, these cards can easily warrant the exact opposite.
For some, these types of cards comes with an alluring credit line (upwards of $3,000+). With such an allure, it’s very easy for cardholders to accumulate mass-spending, especially when they have an attached 0% Introductory APR. I want to remind you all that this is what big credit card companies want you to do. Once the Introductory rates end, you’ll be left with an excruciating APR on your whole balance (better known as deferred interest), and if you carry over a huge balance, you should expect a huge fee attached. In doing so, this would easily revoke literally any rewards and sign-up bonus that you’ve accumulated with the card.
Don’t Close Your Credit Cards
If you’re thinking of opening a credit card solely for rewards; gaining some bonus points or airlines miles and then closing your credit card after a few years. It won’t make your credit score suffer too bad, but you can expect a ding on your credit score. We recommend that you just let your credit cards mature, even if you don’t use them because credit history accounts for 15% of your credit score. If you close down your credit card account, you’ll be essentially eradicating that set credit history from your credit file. Remember, every point matters.
On another spectrum, if you close your credit card after a few months of opening, the impact to your credit score will be trivial or insignificant because there wasn’t a great deal of credit history attached to your credit card in the first place. If you’re just starting on your credit card journey, then building your credit history would be the ideal situation.
Conclusion:
Applying for a new credit card shouldn’t be difficult, but we went ahead and made this post for Advice To Apply For Credit Cards. Essentially, there are some factors you may want to look at before opening a credit card including Applying for multiple credit cards within a short duration of time, accumulating debt from bonuses, accumulating fees from interest APR and closing your account with prior credit history attached. Note that you shouldn’t use more than 15% of your credit line, be sure to pay off your balance in a timely matter and keep track of your credit card’s annual fees. Once you have the adequate credit score, the next card I recommend is the Chase Freedom Unlimited®. See our complete list of Credit Card Promotions!
