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How to choose a second credit card

It is no accident that many of us cling to our first belongings, like a credit card or that savings account that today looks less attractive.

You may still be using that card you were given as a student or the one from your favorite store. If you think it is time to have another one, we explain what to consider for this step.

Article content

  1. When to apply for a second credit card
  2. What to look for in a second credit card
  3. Benefits of applying for another credit card

When to apply for a second credit card

On average, a third of Americans never change the plastic they have used since their inception in the financial world. Although this may work for some, Get one second credit card it can help your personal finances.

As this is an important decision, there are several key points to consider.

How long you have had the credit card

We have already stressed that requesting several cards in a short time can hurt your score for the hard inquiries to your file.

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The average time for a credit card to start having an impact on your credit history is From 6 months to 1 year. If you already have years with a single product and you know well how it works, having another is a good option.

New plastic management

Before thinking of a second plastic, you need to honestly evaluate your personal finances. This possibility implies that you must manage more collection dates, expenses and limits that you must control.

In case you have maxed out your first credit card and want another to pay that balance, we recommend you lower that debt and internalize better financial habits.

How will you use the card?

Second credit cardThe basic purpose of a second credit card is that you use it frequently and pay it responsibly. The fact of having a much higher limit to your income can end up affecting your score, especially if you don’t take advantage of it.

In addition, when you start to load balance from one month to another, you invalidate the possible benefits that they give you.

Application for a major loan

Requesting another plastic may represent a small drop in your FICO score. That slight point difference can be crucial to getting a mortgage or auto loan approved.

If you want to commit to buying a house or car before, it is preferable to ask for a credit card after you get this financing.

What to look for in a second credit card

Requesting another plastic will not be the same as when you received the first one. Your criteria have been broadened, you have more information available and you know what benefits you would like to have. Based on this, keep the following in mind:

  • You can establish a relationship with another entity. If you are not completely satisfied with the bank or issuer you have now, you can switch. Among so many options, the power to choose is important and you can guide yourself with the help of Hispanic Business Blog to find the most coveted credit cards of the moment.
  • You have more chance of approval. According to your history and according to the way in which you have been managing your other plastic, you are in a more advantageous position to take advantage of better offers. This can include a card with higher benefits, such as a higher credit limit, price protection, extended warranty, a reward structure, and more.

  • You can choose better rewards. Among the benefits of a credit card, the options to receive points, miles and even cards with cash back. This can help you get discounts in the purchase categories you use the most, discounts on fuel, or redeem your points for cash or other compensation.

Benefits of applying for another credit card

The first time you ask for a TOC, you are praying for approval. When it’s your turn, you already have a reputation and you can choose more carefully. This second chance can help you:

  • Improve your credit utilization rate. The variable of utilization ratio It tells you how much debt you have compared to available credit. If you have another plastic, you have more money available, which helps you improve this value by using these credit instruments wisely.
  • Transfer your balance at a lower rate. If you have accumulated debt on your credit card or through other products such as personal loans, another TOC can help you consolidate debts. There are plastics with a 0% APR that can be extended for up to 2 years, saving you a lot of interest.
  • Increase your score FICO. Credit cards are basic tools that allow you to build a track record, establish a good reputation, and consolidate your relationship with a financial institution. When you behave responsibly with one or more plastics, your chances of accumulating more points for your credit score increase.

You can have the credit cards you want as long as you understand how to use them for your personal finances. To help you choose the most appropriate one, you have the Business Blog comparator, your reliable source of information for TDCs and other financial products.

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