Applying for a new credit card is a time-sensitive issue. Knowing which credit card to use and when to apply for a credit card might come with some perks. For persons with a good credit score, the terms of acquiring a credit card are friendly. However, the terms may not seem friendly for persons with a bad credit score trying to improve their credit score. That is why there is a need to time the application process for a credit card.
Getting A Credit Card When Your Credit Score has Improved
A person with a bad credit score may be reluctant to apply for a new credit card because the terms of acquiring it might be unfavorable. This is where the concept of timing comes into play. The sooner the person applies for a credit card, the more favorable the terms. This way, the person can use their existing credit cards until they can pay off all bills and avoid incurring late fees. Consequently, the person can have a better credit score.
Many factors come into play when deciding on the best time to apply for a new credit card. One of the factors is the length of time since your last application for a new credit card. If you have not applied for a new credit card in over three years, it won’t be easy to get approved again because most banks and lenders require proof that you are financially stable. Therefore, it is advisable to apply after adequately paying off all bills and avoiding incurring late fees or penalties on your existing cards.
Take Advantage of the Credit Card Promotions
The best time to apply for a new credit card is when there is a great promotion. This is because the more people apply for the same credit card, the higher the chance of getting approved. Therefore, it is wise to be patient and wait until special offers on specific credit cards. Credit card companies usually run promotions such as signing bonuses, cashback reward programs, and other incentives that attract new customers to sign up for their products.
You can take advantage of these promotions by applying early enough. For example, suppose you are a frequent traveler and have been eyeing a particular airline rewards program. In that case, you should sign up before the promotion ends because this will help you accumulate miles faster and save money in the long run. Therefore, you should be prepared to wait to take advantage of these promotions. In this way, you will know that you are getting the best deal possible for your money.
The new SoFi credit card comes with special promotions for those with good credit ratings. According to SoFi Invest experts, “You will earn 2 reward points for every dollar spent on eligible purchases.” This is because they know that by doing so, they will attract new customers and therefore increase their profits.
Conclusively, timing when applying for a credit card is crucial. For example, if you plan to pay off your credit card balance each month, it would be best to apply for a credit card that offers an interest-free period of at least six months. This will allow you the time required to pay off your balance in full before the promotional period is up and, therefore, save money on interest charges.