Credit Card – 7 Things to Consider Before You Apply

Credit Card – 7 Things to Consider Before You Apply
Having a credit card is a great way to finance your goals. it also helps to build a good credit history once you have used some cards over time.
If you have never used a credit card before and you are considering getting one. Or you have some setbacks on your credit line. Then these tips below are essential to take note of and put in place before you apply for another a credit card.
7 Things to Put in Place Before You Apply for a Credit Card [Credit Cards]

Credit Card – 7 Things to Consider Before You Apply

Before you apply for any credit card, to increase your chances of getting approved. Read these tips and put each of them in place.

You Must Know Your Credit Score

The first thing you must do in order to get good credit is to ascertain your credit score. You should go get your actual FICO score – or at least get an estimate of it. If you don’t have any credit card at all, you can access your credit card for free from sites like websites like CreditKarma and CreditSesame. They will let you view an estimate of your credit score at virtually no cost.
Another free option to use in determining your credit card is to use the Discover’s free credit score checking tool to do so. Take Note that you don’t have to be a Discover customer to use the tool.
Once you’ve determined your score, you’ll know which credit cards you can consider and begin the improvement process if applicable.
In Knowing your credit score or getting an estimate of it. You must also understand what score you but you also need to know what your score means and whether it’s good enough for you to be qualified for a credit card.

Credit Card – 7 Things to Consider Before You Apply

what constitutes a good credit score

A credit expert John Ulzheimer examined what make a good credit score, here’s how credit score ranges tend to stack up from top to bottom:

  • An excellent credit score should be 760 and above.
  • A good credit score should be  between 701 and 759
  • The credit score of 651 to 700 is considered a fair credit (but a 695 is the national average).
  • Under 650 becomes a poor credit.

The higher your credit score, then more likely you are to get approved for a credit card.

7 Things to Put in Place Before You Apply for a Credit Card [Credit Cards]

Get your Actual Credit Report

Another important thing you should have in addition to your credit score is to get a copy of your actual credit report. Fortunately, you can get a free copy of your credit report from all three major credit reporting agencies – Experian, Equifax, and TransUnion – for free, once every year.

How to Get Your Actual Credit Report For Free

To get your Actual Credit Report For Free, you can simply do so by going to the AnnualCreditReport.com to get a copy of your credit report for free.
On the  website, enter all of your information,
you’ll be able to see all of the information shared on your report If everything reported in it is accurate,
If you find a mistake, however, you should do what you can to have it fixed right away. If you spot a mistake, here’s a post on how to dispute credit report errors.

7 Things to Put in Place Before You Apply for a Credit Card [Credit Cards]

Always Make Sure all of your monthly payments Are Done on time.

In determining Your FICO score, your payment history is one of the biggest factor used into your credit score. You must understand that your payment history makes up about 35% of your credit score.
So if you intend to improve your credit, you must ensure you always pay all of your bills on time. Delaying any payment or even missing any particular bill payment can do so much damage on your credit score than any other thing. As much as possible avoid making late payments on any of your bills. that is why you can always automate Certain Bill payments from your account to avoid this kind of damage.

You Can Pay down your debts.

Credit Utilization is Another great factor in your credit score. Credit utilization is said to be how much money you owe as it relates to your credit limits. Try to avoid too many large balances when utilizing your available credit.
Most Credit experts advocate you should keep your credit utilization below 30%. that means if you have a credit limit of $1,000, you should never have a balance larger than $300. When you’ve used up more than 30% of your total credit limit, you are now at risk to lenders and this can make your credit score to drop.
When you pay off debt and put your credit utilization just below 30%, you have chances of your credit score going higher. So if your credit score is borderline, pay down any outstanding balances before applying for a credit card to give yourself the best chance of getting approved.

Locate the right credit card offer best for you

Never be in a hurry to settle for any type of credit card, take some time to search for the best offer and find one that suits your needs at that time.
If your intention is to get a credit card to help you consolidate your debt, then getting a balance transfer credit cards will help you pay zero interest for a limited time. If you’ want to earn rewards, then there are several great rewards credit cards available to consider that offer everything from cash back to airline miles.
What’s more, some cards offer lucrative signup bonuses if you spend a certain amount on your card in the first three or four months.
Take your time to locate a card that is a good match for your needs.

Go for a secured credit card as your last resort.

If your credit score isn’t high enough to qualify you for a traditional credit card, then we suggest you should go for a secured credit card to begin. Secured cards work by offering credit that is tied to the cash deposit you put down.But unsecured credit cards extend your line of credit,
As we see, several secured credit cards offer a $1000 credit limit but require always require a $1000 deposit to get started. While this doesn’t seem beneficial at first, secured credit cards are often the best and only way for people with bad credit or no credit to raise their credit score.
Once you use your secured card wisely, paying it off each month, your credit score will increase significantly, and then you can upgrade your card to an unsecured credit card and get your deposit back. If your credit score improves dramatically, you may even be able to qualify for a top rewards credit card after a stretch using a secured card. It really depends on your situation, your goals, and how much your score improves.

Learn to Use credit wisely and never give up.

If you do not meet the requirement for a credit card right now, then you can simply give yourself some time. Begin by using the credit now wisely.
Ensure to pay your utilities, car payments, and student loan bills on time. Every time you do this, you’ll put yourself in the best position to boost your score over time.
And if you have bills in default, a lot of debt, or other negative marks on your credit report. You should focus on repairing that damage before you take on more credit.
The best thing to always do before going for a card is to sit back and look at your credit for what it really is. Check the step listed above, And see how you can be on your way to better credit.

Credit Card – 7 Things to Consider Before You Apply