3 simple steps to apply for a new card without hurting your credit score:
J. Carlton Ford, Debt Negotiator, says:
No matter if you have fair, poor, or perfect credit, a good way to improve your financial health may be getting into a new card. The reasons to get into a new card vary, but the best one is to avoid high APRs on your current credit cards. But did you know that applying for credit in the wrong way can hurt your Credit Score? It is true. So in this section, I will show you the three simple steps to apply for credit without hurting your credit score.
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Remember the 5×6 Rule, which is, apply for credit only 5 times every 6 months.
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Apply for credit over the same time period, because creditors look at how many times you have applied for credit in the last 6 months. Now when you are approved for credit, an account will be listed on your credit report. But if you are not approved, no information will be listed. And this tells all the creditors that you were denied for credit. Now, every time you are denied for credit, it hurts your credit score, and could even cause credit pneumonia.
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Understand the offers, terms and conditions of the card before you apply. For example, if you are thinking about doing a balance transfer, ask how long the promotional APR would last, and then what happens when the promotional APR expires.
So, to review, follow these three simple steps when you are applying to get a new credit card:
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Remember the 5×6 Rule, which is only apply for credit 5 times every 6 months.
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Apply for credit in the same time period, like the same day or the same week.
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Understand the terms and conditions in all the offers before you apply for the credit card.
Now you know how to apply for a credit card in a responsible way that won’t hurt your credit score.