Applying for credit can be a great experience for many people. You get to build a credit score, establish your name as a responsible borrower and spender, and eventually you start to get rewards: cash back, frequent flyer miles, discounts on gas! Great, right? If you are thinking about applying for credit, there are two things you want to remember: stay out of credit debt, and avoid these pitfalls…
Avoid These 4 Pitfalls
Don’t apply for too much credit at once. As you might expect, this makes creditors a little jumpy. When you sign up for three credit cards at the same time, everyone knows about it, and it won’t reflect well on your credit score.
That point brings us to a big one: your credit score. If you have a bad credit score, don’t bring it up. Yes, the lenders will figure it out for themselves. However you don’t need to be the one hurting your chances of getting a card.
Speaking of credit scores, when was the last time you looked yours up? If you don’t know your credit score, you should. It’s possible that there could be errors on your credit score that are hurting your chances of getting a good card. Correct these now before applying for credit!
Don’t cancel any of your existing credit cards. While it might seem reasonable to close a line of credit when you’re applying for credit elsewhere, closing cards hurts your score. You don’t want to see your credit score dip when applying for a card.