There are millions of people who are already using credit cards but they still want to know “When Should I Apply for Another Credit Card” then you can follow this in-depth guide here.
If you decide to apply for another credit card then one of the most important factors which you must need to know is your credit score. If your score is good then you receive your last credit card then you need to qualify for a card to get rewards and also to get the benefits that you didn’t get earlier. If you are one of the authorized users or using another person’s card then you may need to get your own.
When Should I Apply for Another Credit Card?
If you apply for another credit card then it would be worth and if the file of your credit card is thin then it will improve your credit utilization ratio and also the credit which you are using will be related to your credit limit, Below, we are going to know about how to know when to apply for a credit card.
When It Can Be a Good Idea to Get Another Credit Card?
We consider that you only start looking for a new credit card at the time when you get stocks in these situations:
- Your Credit Score has Improved: If you are already using a credit card and your credit score has been increased when you get it. You may be eligible to get a new credit card along with lots of benefits. Also, it will be in case you have a student credit card from the days of your college.
Also, you may want to apply for a credit card which will provide you the higher rewards of cashback or also the chance to get points of travel. Also, these cards require an excellent credit score and it is a kind of issue if you are increasing your credit score.
- You’d be able to Take Advantage of Promotions: Some of the cards provide the 0% promotional annual percentage rate for a year. Also, it is one of the best financial moves which you can use to make interest-free purchases. Also, the other cards provide the cash bonus only if you use this card and spend over the threshold within a few months of getting this card. Also, if you are getting married or planning for a home renovation then you must need to have a credit card with minimum spending. To get a credit card that provides a high sign-up bonus is really beneficial for you.
- You have a History of Managing Credit Responsibly: You need to make payments on your credit card on a regular basis every month and also keep your spending as low as you can by using a credit card. If you are looking for a sign-up bonus then you need to play to pay off the balance in a rapid manner. Simply use more credit which means you have to spend more money as per your affordable limit.
When You Might Want to Wait to Apply for a New Credit Card?
There are some circumstances where you are required to wait to apply for a new credit card.
- You’ve Recently Applied for a Credit Card: When you apply for a credit card then the lender requests you for a copy of your credit report and it is mainly known as a hard inquiry. These inquiries are a brief time which is a red flag for the lenders who interpret them to sign that you are not responsible to manage credit.
There are some of the card issuers who are having their personal rules related to the waiting time in terms to apply for a new card. As per the chase, they made a 5/24 rule where they restrict the customer not to open more than 5 Chase credit card accounts in a time cycle of 24 months.
- You’re Planning to Apply for a Loan or Mortgage: You need to avoid applying for a new credit card if you are looking for other credit forms such as a home loan or any other type of loan in the future. As you know that any hard inquiry will affect your credit score and also will stop you from taking out a loan. Also, the credit will also be below the average age of your account, and also the lenders want to see the history of your credit as well. Also, the experts suggest you avoid looking for a new credit line for one year in order to apply for a loan or mortgage.
- You’ve Struggling to Afford Your Current Credit Card Bills: It is also good to wait to apply for a new card if you can’t be able to pay for those cards which you are already using. You need to be confident about your income and also the habits of your spending which will support you to access more credit.
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So, finally, we hope that you understand all the useful details related to the process of when should I apply for another credit card.
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