Credit Card Application
Updated: Jun 13, 2021
I am currently 21, and before this year, I had not applied for credit cards due to the stigmatism surrounding things debt in general, whether that be student or credit card debt. I also had the understanding that I would need to have some form of income to apply for a card. These two beliefs I eventually realized were incorrect. For me, the goal of using a credit card was to earn the sign-up bonus or obtain cashback. Because I never intend to balance any of the cards, I mainly ignore the APR or any penalties associated with cards. Because I do not have a credit score yet due to having just recently acquired a credit card, I get rejected by most cards that I have applied for. I plan to form a credit history with my two student credit cards to then apply for several credit cards, mainly for the sign-up bonus. Because my credit score will not be necessary to me during the first few years, having hard inquiries on my credit would not be an issue. Therefore, I plan on obtaining the most significant number of cards in the shortest amount of time to have a reasonable length of credit.
Below is a chart with the limitations that each bank imposes on its members when applying for credit cards. It was compiled with the information provided at thepointsguy. This information is likely unnecessary for someone who does not intend to have many credit cards but is more informative to someone who is focused on sign-up bonuses like me.
One mistake that I made was not applying for a credit card when I turned 18, as that would have allowed me to have a credit history of at least three years by now. That would have allowed me to have a credit folder that would enable me to apply to credit cards with substantially better rewards than those I currently have. Becoming an authorized user is something that can also be done with someone that has no credit. Still, it should be considered that it is no longer as effective of a strategy as before as banks started to realize that people were using it to improve their credit. If you are creating and cannot apply for a student credit card, my best advice would be to apply for a secured credit card or one that is known to have a high approval rate.