Skip to content

3 Things to Keep In Mind When Applying For A Credit Card

BY Rachel | 14 November, 2016 | no comments

Credit cards create a line in the sand among people. Some stand on the side of disapproval, while others think that credit cards are great and a huge asset if you can learn to use them correctly. But that’s just the thing. Learning to use a credit card correctly can take a bit of practice, but once you master the application and you know all there is to know about applying for a credit card, you’ll feel confident that you can use your card to benefit your life instead of putting you in a place of worry.

If you’re about to take the jump into credit land for the first time, with the help of places like SoFi, here are 3 things you need to keep in mind when you’re applying for your credit card:

Not All Cards Are Equal

Nowadays it seems like every company is giving consumers the chance to jump on the credit card chain. It seems like every store that you walk into asks if you want to sign up for their rewards card. The amount of card offers you get in the mail can be overwhelming, as well. But remember that not all cards are equal. Don’t just sign up for the first card that shows up at your front door. Make sure that you’re getting a good interest rate and that there are ample perks for you to cash in on.

Less is More

There are different schools of thought on this matter. Some will say that more is more, but in many cases, less is more. When you apply for a host of different credit cards, your credit score will actually go down so you’re going to want to be selective about the cards you do choose to have. Don’t have more than 3 or 4. This way you’ll be able to keep track of your finances better and you’ll be less likely to find yourself in a hole of debt where interest in compounding at an alarming rate.

Try Not to Spend More Than You Can Pay Off Each Month

When you have the funds right at hand, it’s tempting to make purchases without thinking about the fact that you have to pay off those purchases with interest. If you’re going to have a credit card, use it right. Try not to spend more than you can pay off each month on the card. This way you’ll stack up the benefits, but you’ll not be paying more than you have and placing yourself in a bad situation with debt.

Credit cards can be dangerous, but they’re also a huge asset. Use them wisely, think twice before you apply or spend, and think about each of these things before you apply.