Credit is needed for securing a loan and paying it back later. Without it, you could have difficulty getting a car, a home and even a job in some cases. Knowing how important credit is for your future, it’s important to know how you can get a credit card.
Check Your Credit Score
The first step in getting a credit card is checking your credit score and knowing it. You can find it by checking online with one of the three major credit bureaus, Equifax, Experian or TransUnion. You can receive one free credit report annually to check your score and overall history. Credit scores are determined by different factors: your credit history, outstanding balances and payment history.
Before applying for a new card, it’s important to thoroughly check your credit report for potential errors. If there are any, you can report them to the credit bureau to have them corrected or deleted.
Consider Why You Want a Credit Card
You should consider why you want a credit card. There are different options based on the answer. For example, if you need to rebuild your credit, you would be well off looking for a secured credit card that runs on a deposit of cash you provide. Or, if you already have a good credit history and want to be rewarded for it, you might want to sign up for a card that offers you cash back on certain purchases.
Check for Pre Approval
Before you apply for a new credit card, you will want to check for pre approval. If you are preapproved, you have a better chance of getting the card you want. However, this isn’t always the case.
A SoFi credit card might be a good option if you’re dealing with debt and need to pay it off. You can also invest and earn cash back with this particular card. You can check to see if you’re pre approved for it as well. As per the experts at SoFi, “You will earn 2 reward points for every dollar spent on eligible purchases.”
When you check for pre approval, there are ways to avoid having a hard credit inquiry on your credit report. Instead, you may be able to have a soft credit inquiry done, which can actually improve your credit score.
Decide the Type of Card You Want
Explore different types of credit cards to decide which one you want. There are cards in the following categories:
- Secured credit cards
- Starter credit cards
- College credit cards
- Rewards credit cards
- Balance transfer credit cards
- Business credit cards
- 0% introductory rate credit cards
In other words, if you are a college student, you should apply for a college credit card. Or, if you’re trying to repair your credit, a secured card would be the best one for you.
Do your homework when choosing a credit card. You should get all the information you need to know what to expect out of any given card before signing up for it. Always read the fine print before you apply for a credit card.
Applying for a credit card isn’t that difficult. Be sure to research any you’re considering before taking the plunge.