If you’re “new” to the world of credit and credit scores, you’ve undoubtedly heard lots of “advice” from others about credit, applying for credit cards, and more. While some advice is great, too much advice can be far too confusing, especially if you’re just starting out. So, how do you start building credit? Obviously, you’ll probably start with a credit card. But, is applying for a credit card bad? The short answer to this question is no, but there are other factors to consider when you apply for a credit card. And those factors might make it seem to be a bad idea to apply for some credit cards.
Before you apply for a credit card, you should check your credit score. Even if you have no credit, or severely limited credit, it’s best to know where you’re starting from. Credit cards, just like loans, are based on your creditworthiness. And there are different cards for all levels of credit. Applying for the wrong credit card can actually do more harm than good. For example, if you apply for a top of the line credit card and are rejected, you’ll actually lose points on your credit score due to the hard inquiry, and you’ll still end up having to apply for another card that better suits your level of credit. So, if you know where to start from, you’re far more likely to get approved the first time!
Here’s a great starting point to find out your credit score: