Credit cards can bring out various emotions in a person. It can prompt excitement and anticipation for some of them, whereas, for others, it can induce anxiety. But if you choose the best time and a preferable one to appeal for a credit card, you don’t have to go through the rollercoaster of emotions. The proper timing of getting your credit card application might not reduce the anxiety that fuels up around the process. But it somehow improves the chances of your credit card approval.
The best time to apply
Before you apply for a credit card, the first thing that you should do is to go through the financial situation. It includes you must take a proper look at your current spending habits. Whether you are applying for a credit card for the first time or someone who has already had it before, this practice would be great for anyone and everyone.
Moreover, you need to take notes of the long-term financial goals and the immediate financial goals. If you can see that you can rip some benefits from the credit card, you should find a card with certain features that complement these goals.
When you have left over balance on a high-interest card
Sometimes you need to transfer the existing balance of your card that has higher interest than the one that provides a lower interest rate. If you can do the processing properly, it can save a lot of your money on the interest charges. Whenever you are carrying any higher interest debt, it is time that you apply for the new one that offers 0% introductory APR on balance transfers. Invariably you would be able to pay the balance before your introductory APR expires. Therefore, it can help you to avoid paying high-interest charges.
While you are planning any big purchase
You can get a new credit card for two reasons when you have already planned for a big purchase. The first one is that you can avoid interest in your purchase due to the promotional APR. It can also help you to earn rewards from the credit card sign-up. For instance, some of the credit cards issues would offer welcome bonuses or sign-up rewards in the form of cashback.
However, it can be availed if you can maintain the spending requirements on the card within a particular period. When you are planning for a large purchase, you need to time up your application to get help in meeting the spending requirement.
Moreover, the time frame that every credit card company offers to meet the spending requirements is generally three months from the date of your account opening. Therefore, if you miss out on your sign-up bonus, then you are missing a great deal. On the contrary, if you have no plans to spend your amount on any big purchase, the best time to get a credit card is during the holiday shopping season, where you will be spending a lot of money.
During the building of the credit profile
You can get a new credit card when it is time for your new credit build-up. It can help you to maintain a history of timely payments of your credit amounts. Your FICO score and your credit mix account score happen to be 35% and 10% simultaneously. This score helps to calculate the credit score of your credit card. For the lenders, the score is important to perceive the individual in terms of any credit risk.
People with negligible or no credit history can start with the starter credit card or a secured credit card. These cards are known as entry-level cards. If you can use these cards properly, it can help you qualify for better credit cards.
When you have been pre-approved
To get a pre-approved credit card, you need to match the card issuance criteria even before you apply. However, there is no guarantee for this kind of card. But when you apply for the pre-qualified offers, you generally trigger soft credit inquiry. However, it may not affect the credit score.
The best time to get a credit card depends from person to person. Everyone has different personal goals and various financial aspirations. Availing a credit card can help them to a great extent. The features in the credit card help to assess the various needs of the person. Thus, the best time to get a credit card is the time when you think it is perfect. Moreover, you must be careful about the terms and conditions that represent your credit card. Without getting too excited, you should go through various rules and regulations before applying.