Things to Consider when Choosing Which Credit Card to Apply For
Credit cards can be a great tool to help rebuild your credit. But that is not to say you need to get a huge number of cards. Although it might be tempting, you don’t want to end up with many cards just to build your credit score.
For those who are just starting out with building their credit, getting just one card or a few credit cards will provide you with the best starting point in building a good credit score. Keep in mind, just because you have one credit card does not mean that you are going to have a good credit score.
If you do decide to have just one card, keep it a low limit and a high-interest rate. This will help you establish a good history of paying your bill on time. This will also help to ensure that you will be paying your minimum payment each month.
Over time, as you pay your bill on time and maintain your credit score, you will begin to qualify for more credit cards. You may be tempted to immediately go from one card to another.
However, your credit score will take a hit and your credit score will drop to a lower level. Because of this, you should only consider having one or two credit cards.
So how do you choose which credit card to apply for? Here are some of the most important things to consider:
Are you able to make your monthly payment on time? Many credit card companies will pay your balance in full every month without you ever having to contact them. However, if you find yourself unable to pay your balance in full each month, this might not be the best credit card for you. Try to look for cards that allow you to have a higher interest rate but give you the option to pay your balance in full each month.
How much is the annual fee? Some credit cards may be extremely low monthly fees, while others have a huge annual fee attached to them. As always, keep in mind that even if the annual fee is a little high, that does not mean it is worth it.
Get a copy of your report. By law, all major credit card companies must provide you with a free copy of your credit report once a year. Be sure to check your credit report regularly so that you know what mistakes you may have made.
To further rebuild your credit, it is possible to apply for credit cards at different stores. In order to rebuild your credit, you need to have a number of different cards.
This way, you can also use all the cards to make sure that you are paying all of your bills on time. By doing this, you will build your credit history and your credit score will quickly begin to improve. If you also have a home or car, these types of credit cards can be a valuable tool to help you rebuild your credit history.