Applying For a Credit Card

Photo Credit: Delainey Williams via Credit Karma

Applying for a new credit card is a huge responsibility to take on. Especially if it is your first time applying for one. Here are some tips for going and applying for your first big item!:  

• Check your credit score! What you will be qualified for, all depends on your credit. I recommend Credit Karma because it's free and it gives you recommendations for products that could help you. Knowing your credit score and understanding it, is the very first thing you need to do before applying for any new accounts. Most credit cards companies will have a minimum credit score (usually between 650 and 750) so it is a good idea to be familiar with yours. In addition, it might reveal things you didn’t know, like if you had any medical collections for example.  
• Determine what you want out of your card. There are many different types out there from rewards cards, cards you use for airline miles, store cards such as Victoria Secret or Kohls, or even just plain credit cards through your bank. 
• Do some shopping! Just because you have had a bank account at the same place since you were 2, does not mean that will be the place for you to get your card. There are tons of places that offer a low introductory rate, or cash back. You just need to figure out what is going to work best for you.  
• Check to see if you are pre-qualified. Some of the bigger name companies such as Chase or Captial One can let you plug in your information without taking a hit on your credit. They can tell you what you are pre-qualified for ahead of time.  
• If you are approved, congrats! Make sure to manage it wisely, and not overspend. It is easy to rack up credit card debt, so make sure you are only spending what your budget can afford. Just because Chase gave you a $2000 limit, does not mean you need to go and blow it all in the first month.  
• If you are denied, it isn't the end of the world! There are still options. Continue to build your credit, and after at least 6 months try again. You don’t want to apply for a bunch of cards back to back, because those inquiries will show up on your credit report. You will want to give it time before you apply again. You also have the option of applying for a secured card. A secured credit card is where you put some of your own money as collateral towards the card. Usually whatever you want your credit limit to be, that is what you put down. A great option for this is Capital One. They have a secured card that you can put as little as $50 down and get a $200 credit limit. After 5 months of making your payments on time, they bump it up to $500! This product is a great way to improve your credit.