Where to Start When Applying for a Credit Card?

Points On Purpose©

          CREDIT CARDS  are the fastest way to get to where you want to go for free. That said, there may be many obstacles that keep you from getting the card you may want or need.

No fear, this is where we can help you!

What are these obstacles that can keep you from getting the card you want?

Here are 4…

CREDIT SCORE

The first step to take is to set up a free account with Credit Karma. If you have already done that, you’re one step ahead of the game. This site is a useful tool to help you understand your credit score.

  • If you have Poor Credit Screen Shot 2019-03-02 at 7.30.50 PMhere are a few simple steps to consider:
    1. Read the factors of credit for your understanding and identify where you need to improve.
    2. Dispute any and all collections (click on accounts, scroll down to collections and click the tab)
    3. Wait and plan. Wait to hear back from your disputes.
    4. Reach out to us so we can walk through the process with you.

CREDIT FACTORS

Screen Shot 2019-03-02 at 8.09.50 PM

Just because you have a good credit score doesn’t mean you will get any card you want. Your credit score consists of roughly these main factors (listed in importance):

  1. payment history – Always pay in full.*
  2. amount of credit used (also called “utilization”)
  3. derogatory marks (collections, etc.)
  4. credit age (keep old credit cards open if they are free, otherwise downgrade to a fee-free version)
  5. total accounts (the more accounts you have the better your score!)
  6. hard inquiries

*The #1 rule of using credit cards to travel for free is Steward Well. Never carry a balance that you will pay interest on or else you are defeating the purpose of maximizing the cards value.

Screen Shot 2019-03-02 at 8.14.14 PMScreen Shot 2019-03-02 at 8.14.05 PM

BANK RULES

This is where things get tricky. Each bank has their own set of rules for applying for cards. They are easy to navigate once you understand them but we will discuss this more in the future. Just ask us if you have any questions before applying but you should know that the credit cards you need to be considering first are CHASE cards since they all fall under the 5/24 rule now.

“Chase will not approve applications if the applicant has already opened 5 (or more) credit card accounts in the last 24 months. This includes not only cards you open at Chase, but also cards you open at any bank that are reported to your personal credit report.”

TOO MUCH TOO SOON

If you aren’t sure where to start, don’t go for the biggest and best. You will need to slowly build up to the heavy weights. The first step you can take to see if you Pre-qualify for any credit card offers is by using the Card Match Tool by creditcards.com.

SO WHERE DO I START?

The best cards to start out with are:

Low Credit Score – Discover It Secured CardScreen Shot 2019-03-08 at 3.20.34 PM

  • Depending on your score (and other factors) apply for this card to start stabilizing your credit.
  • This card will help you show banks your ability to use a credit card responsibly.

Good Credit Score – Chase Freedom Unlimited Card

I believe this card is importinat to keep in your wallet, especially if you have one of the Chase Sapphire Cards.

Screen Shot 2019-03-02 at 8.26.56 PMIt gets you $150 after spending $500 in the first 3 months, 1.5% cash back on every purchase, and it is free to keep. Thanks in advance if you use our link to sign up!

 

Good – Excellent Credit Score – Chase Sapphire Prefferred Card

Screen Shot 2019-03-08 at 3.38.28 PM

This card is a must have for everyone’s wallet. It comes with a weath of benefits including travel insurrance, car rental insurrance, an extra 25% in value when redeeming points for flights and more. You’ll also get 50,000 Ultimate Rewards Points with Chase which are equivalent to $625 in travel and the $95 annual fee is waived the first year.

DONT QUIT

Even if you get denied there are always opportunities to call the bank and have them reconsider their decision once you explain your situation and desire for the credit card. Reach out to us any time and we will help you get your next card!


Card of the Month:

delta-skymiles The Delta Gold Skymiles Card from American Express is being offered at its highest ever sign-up bonus! The card will give you 60,000 Skymiles which I value at a minimum of $750 (depending on how you redeem your points).

Here is what you get:

  • 60,000 Skymiles after spending $2,000 on purchases in the first 3 months.
  • $50 statement credit after making your first purchase
  • A free checked bag on any and every Delta flight as long as you use your card to pay for any portion of the fare & a free bag for up to 8 traveling companions!
    • That is a value of $30 – $270 depending on your crew, per flight!
  • Waived annual fee for the first year, then $95. This means you can try out the card for free for a year, then decide if it makes sense to keep it around.
  • No foreign transaction fees

Published by

Points On Purpose

Credit cards can be scary for everyone, especially if you are like I once was, struggling with your credit history and confused with how it works. Two years ago my friend, Aaron Jackson, helped me transform my credit eligibility. When I started I had 13 collections, low 500’s credit score, and ZERO credit history. After several ignorant credit card application denials, I set out to learn how to repair and build my credit so I could start raking in big credit card bonuses. My credit score is now 791, I have 10 credit cards in my name, zero collections, and am saving thousands of dollars simply by using credit cards to rapidly gain points, miles, and cash. You can see why I am passionate about this and why I want you to experience the same help that was given to me. I understand it can be embarrassing to talk about your credit record, but we've all been there and that is why we are HERE! - Dusty

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