Applying for a Credit Card: An Extensive Guide into What You Need to Know

So, you’ve decided that you’re applying for a credit card. Congratulations!

You must understand the implications before handing over your information, so this guide is here to help you determine which cards might be right for you. Here’s everything you need to know.

Applying for a Credit Card: Things to Consider

#1: There are a few things that you will need before applying for a credit card. It varies from card to card. The requirements will typically involve legal age in whatever country you’re applying in and having some form of income, whether part-time or full-time. In most cases, if you have a reliable job and you’re above the age of majority, your application will go through.

#2: If you decide to apply for multiple cards simultaneously, make sure that they extend credit lines equally. If you apply for a card with a $2000 limit and one with a $4000 limit, make sure both give you a limit of $2000. Even if they offer a lower limit for your first purchase, make sure to discuss this with the issuer beforehand to ensure that you get what you’re expecting from each card.

#3: You should always shop around before deciding which card is best for you. Choosing a card based only on the welcome bonus is not wise, as you will probably find better offers elsewhere. Instead, look at each company’s credit card page to see what they have to offer and compare them with your own needs.

#4: If possible, take advantage of any retention bonuses offered by the issuer. These are typically provided in the form of a statement credit or purchase protection to keep you as a client. When signing up for any card, always ask if they are offered and the terms.

#5: Canceling cards can adversely affect your credit score when done too often or at the wrong times. If you’ve signed up for multiple cards and want to cancel one, make sure to allow at least six months before canceling. It helps to establish a good payment history and good account age. Also, always do your research before canceling any card with annual fees. If the card’s benefits outweigh the cost and you don’t need it anymore, call them up and ask for a retention bonus instead of canceling.

By following these five tips, you can ensure that you will be off to a good start when applying for your first credit card. Of course, it’s always best to let the issuer do the hard work of determining whether or not you are eligible, as they are professionals.

Ensure you opt for the best one like the SoFi credit card so that you can unlock maximum benefits. If you are someone dealing with cryptocurrency, you have extra perks.SoFi “now lets you redeem points straight into crypto. You’ll earn 2% cashback on all purchases and can redeem it directly into crypto with your SoFi active invest account.”