When to Apply for Credit
When should you apply for a Credit Card?
If you are just starting out or rebuilding your credit, you will need a credit card. the trouble is how do you get approved for a credit card without a good credit score. The answer is a secured card. Secured cards are easier to get and you pay a deposit which is your credit limit. You can get a card from Credit Builder Card here is our special link: www.creditbuildercard.com or CapitalOne has many cards and frequently approves people who are rebuilding credit. In fact you can use this link to see if you are pre-qualified for any Capital One cards.
When should I apply for a major bank Visa or MasterCard?
After you have established at least two years of solid credit history. Your credit report should have one small credit card and one installment loan. With your mixture of credit accounts and two years of a solid payment history, it's time to go for the big bank credit cards like Visa and MasterCard.
The FICO scoring model really likes to see consumers with credit cards from major banks. Go to a major bank, like BB&T, Chase, Wells Fargo, or Bank of America, and ask them what type of credit score you would need to qualify for their MasterCard. I suspect you will need to be over 650 and the closer to 720 the better.
Remember, revolving charge accounts with good payment history and 5-10% utilization ratio are important ingredients to building a healthy credit score.