What To Do Before You Take Out A New Credit Card


Forty-nine million people in America have never changed their credit card. Twenty million people have been using the same credit card for the past 10 years. There are many benefits that can be reaped from getting a new credit card.

You can boost your credit score. You can also get new perks. For example, you can accumulate awards that can be used for things like dining and travel. However, there are several things that you will need to do before you get a new credit card. CNBC lists 4 of these here.

You will need to do some research before you get a new credit card. The interest rate is one of the things that you will need to look at. You will also need to choose a credit card with rewards. However, it is important to note that some credit card companies require that you spend a certain amount of money before you can get a reward. You may have to spend $3,000 or $4,000 within a certain amount of time.

You will need to make sure that you avoid overspending. You do not want to close out your credit card account just because you open a new credit card. Leaving an old account can boost your credit score even if you do not use the card. However, if the old credit card account has an annual fee, then it is a good idea for you to close it. There is no need for you to pay for something that you will not be using.

The time of the year that you open the credit card is something else that you will need to consider. You should wait a year if you plan on making a big purchase like a car or home. Every time that you apply for a loan or credit card, your credit score will take a hit.


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