The Application Process

Now that we've discussed general rules on how to choose the best card to apply for, let's discuss the application process.  The process isn't too complicated, but there are a couple of important things to keep in mind.

Search for the best signup bonus

Make sure that you scour the web for the best signup bonus.  The credit card issuer will often detail bonuses on their webpage.  Different credit card forums and blogs will display links to special offers as well.  In addition, issuers will send out mailers to flood your mailbox at home.  Finally, you can sometimes locate lucractive bonus opportunities at brick and mortar bank locations as well. 

The best signup bonuses also show up during different times of the year.  For example, the Chase Freedom card bonus varies.  I have received mail offers for anywhere from $100-$300 cash back from Chase.


Tell the truth

Be sure that you don't misrepresent income or anything else on your application.  This could come back to harm you later.  For example, American Express sometimes conducts financial reviews of its customers if they see activity on their cards that trouble them.  American Express will ask you to send in several documents, including information regarding your income.  Providing misinformation can cause accounts to be closed, and you can be blacklisted from applying for other cards from that company in the future.

No doesn't necessarily mean no

If you apply for a card and don't get approved, don't give up.  Their are reconsideration departments at the issuers that can still approve your application, if you can convince them.  Be prepared to discuss items on your credit report and your current financial situation.  Again, make sure that you are honest.  Also, treat the reconsideration representative with respect.  Very often, you will get the result that you want.

Timing is everything

Here is quick disclaimer.  You are responsible for your credit and should make sure to research your credit score.  I offer tips and tricks based on what has worked for me and my credit profile. 

I am able to apply for several credit cards at a time because my credit and spending history supports this.  If you have a new credit profile or have a lower score, you need to start out slowly.  It makes sense to apply for 2 or fewer cards if you fall into the latter category.  I also recommend allowing a good amount of time to pass before attempting to add to your credit card collection.  If you are new to this game, wait about 6 months before you process another application.  Once you have established that you can handle credit well, applications can generally be submitted every 3-6 months, depending on the institution that you are applying for credit from.

The tips above will help you get approved for the best cards and limits based on your credit profile.  In the next post, we will finally delve into products and issuers that will help you save and earn money on everyday expenditures.