How to Apply for a Credit Card

If you’re new to credit cards, applying for the first time can seem overwhelming, but it is not. However, there are a few things you need to know before applying in order to increase the probability of getting approved. For example, you should not try to apply for many cards at once, or it will hurt your chances, and will also hurt your credit score. For that reason, we created a guide on how to apply for a credit card:

Check Your Credit Score

Your credit score is the most important thing to consider when applying for a card. Not only it will be the main factor that lenders use to approve an application or not, but also how many fees you’re going to pay or perks you’re going to have. Credit bureaus check payment history, amounts owed, credit history length, credit mix, and other things to determine your creditworthiness.

Credit scores are measured by points: poor credit: 300 to 579; fair: 580 to 669; good: 670 to 739; very good 740 to 799; and excellent 800 to 850.

Decide on What Card to Apply For

Not all credit cards are created equal. Depending on what you’re using your card for, it might be more advantageous to apply for one over the other. For example, if you travel a lot, you should focus on airline miles. Big spenders might prefer earning rewards on purchases. Some companies also offer bonus points for new clients, such as the Capital One Venture Rewards which offers 60,000 points, or Chase Sapphire Preferred with 80,000.

Finish the Application

The final step is to finally apply for the credit card you’ve chosen. You will need to go to the company’s website or download their app and provide your basic information like full name, date of birth, social security number, employment status, income, phone number, email, etc.

Use Your Credit Card Responsibly

After getting approved, it is crucial that you use your new card wisely. If not, you will end up having to pay fees and hurt your credit score. Never ever miss a payment, otherwise, you will have to pay hefty penalties. To avoid forgetting it, you can set up automatic payments or set up reminders. Paying the minimum is tempting, but it’s never a good idea. In order to improve your score, try to keep your credit utilization ratio under 30% and never max your credit cards out.

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