Look at your credit score and you will know if it’s time to apply for a new credit card. If your credit score has shown improvement, you may be eligible for a credit card with better benefits and rewards. You can also consider applying for a new card if you have been an authorized credit card user before. Here are some tips on how you can determine the best time to apply for another credit card.
The Best Time to Apply for a New Card
Consider applying for a new card ifyou have a good credit history, but make sure that you can manage both your old card and new one properly. You should also keep your balance low and pay your monthly bills on time.
You can also apply for a new card if you have a good credit score. Another option is to get a credit card with higher cashback reward rates, but these cards usually require excellent or good credit. If you have good credit habits, this requirement should not be a problem.
You can also apply for a new card if you want to benefit from the promos offered by the credit card company. Some companies offer a zero percent promotional APR (annual percentage rate) for one year. All purchases that you make during this period will have zero interest.
Other credit cards provide cash bonuses if the cardholder spends more than a particular threshold. If you are planning to renovate your home, you are likely to reach the minimum spending limit of your card. You can save money by getting a new card that comes with a large sign-up bonus.
How Long Should You Wait Between Applications?
Consider waiting at least ninety days or six months between new card applications. Credit inquiries can harm your credit score. By waiting between card applications, you can protect your score from credit inquiries. Some credit card companies have rules regarding the waiting period for credit card applications. For example, some companies may restrict applicants from getting more than five cards for twenty-four months.
You should postpone your plan to open a new account if you are planning to get a mortgage or home loan. One hard inquiry will have a minimal effect on your score, but even a slight drop could lower your chances of getting a better interest rate. That’s why you should avoid applying for a new credit account for a year before getting a mortgage.
If you are struggling to pay your current bills, you should avoid getting a new credit card for now.Wait until you can pay for bills with your income. That way, you can avoid overspending and missing your payments.
Conclusion
A new card could help you get better benefits such as a lower APR and higher cashback rates. If your application got rejected or you are not sure you will qualify, look at your credit score. You can get it from your credit card provider or a credit reporting company. Some websites also offer free credit scores.