What You Need To Know Before You Apply For Credit Cards
If you think you can apply for credit cards at whim without any forethought or consideration, you may want to think twice.
Too many consumers think no harm can be done by applying for credit cards whenever the notion may strike.
Before you apply for credit cards, whether online or off, there are some things you really need to consider.
1.
It Does Affect Your Credit Think applying for credit cards doesn't have an impact on your credit score? Guess again.
Whenever you apply for credit cards, it shows up on your credit report as a credit inquiry.
While one or two credit inquiries won't really have an impact on your credit score, too many inquiries in a short period of time can actually bring your score down.
Inquiries show up on your credit report for a period of two years and some experts estimate that numerous recent inquiries can affect your credit score by as much as 10 to 20 points depending on your particular credit history.
If you're already on the borderline of good vs.
bad credit, that 20 points can make or break you.
2.
It Might Cost You If you apply for credit cards without doing your homework, it might cost you a pretty penny.
For example, say you apply for a credit card with a processing fee of $99 and an annual fee of $50.
Just by applying and being accepted for that card, you're incurring almost $150 of debt without even buying anything.
3.
You Don't Have To Do It Online Many people who want to apply for credit cards are afraid of doing so online.
While it's true that there are risks involved with entering personal information into a website, the chances of that information being misused are almost nonexistent as long the website is operated by a reputable credit card company.
That being said, if you definitely don't want to apply for credit cards online, you don't have to.
Most credit card websites have phone numbers that you can call to apply over the phone or you can call the number and request that an application be sent to you via snail mail.
4.
You Need To Shop Around Before you apply for credit cards, shop around to make sure you're getting the best deal possible.
Some credit card companies offer rewards just for opening an account and others offer 0-percent introductory interest rates.
You'll want to know what's out there before committing yourself to any certain card.
Applying for a credit card is somewhat like applying for a loan -- some thought needs to be given to the process before you jump in.
Keep the above four tips in mind before you apply for credit cards regardless of how good your credit is or what type of card you need.
Too many consumers think no harm can be done by applying for credit cards whenever the notion may strike.
Before you apply for credit cards, whether online or off, there are some things you really need to consider.
1.
It Does Affect Your Credit Think applying for credit cards doesn't have an impact on your credit score? Guess again.
Whenever you apply for credit cards, it shows up on your credit report as a credit inquiry.
While one or two credit inquiries won't really have an impact on your credit score, too many inquiries in a short period of time can actually bring your score down.
Inquiries show up on your credit report for a period of two years and some experts estimate that numerous recent inquiries can affect your credit score by as much as 10 to 20 points depending on your particular credit history.
If you're already on the borderline of good vs.
bad credit, that 20 points can make or break you.
2.
It Might Cost You If you apply for credit cards without doing your homework, it might cost you a pretty penny.
For example, say you apply for a credit card with a processing fee of $99 and an annual fee of $50.
Just by applying and being accepted for that card, you're incurring almost $150 of debt without even buying anything.
3.
You Don't Have To Do It Online Many people who want to apply for credit cards are afraid of doing so online.
While it's true that there are risks involved with entering personal information into a website, the chances of that information being misused are almost nonexistent as long the website is operated by a reputable credit card company.
That being said, if you definitely don't want to apply for credit cards online, you don't have to.
Most credit card websites have phone numbers that you can call to apply over the phone or you can call the number and request that an application be sent to you via snail mail.
4.
You Need To Shop Around Before you apply for credit cards, shop around to make sure you're getting the best deal possible.
Some credit card companies offer rewards just for opening an account and others offer 0-percent introductory interest rates.
You'll want to know what's out there before committing yourself to any certain card.
Applying for a credit card is somewhat like applying for a loan -- some thought needs to be given to the process before you jump in.
Keep the above four tips in mind before you apply for credit cards regardless of how good your credit is or what type of card you need.