Should You Get a New Credit Card?
You’re Loyal to a Specific Brand or Store
If your trips to the mall tend to include stops at the same stores, taking advantage of special discounts or credits offered
to retail card holders can be a smart decision. “Letʼs say you shop at Nordstrom or Ulta,” says Anderson. “If youʼre already
a frequent shopper, you can get store credit, which can be a good thing. You just have to be careful not to overspend because
of the credit!” Another word of caution: Since many retail cards charge more than 20% interest, Anderson strongly encourages
paying off the balance each month, so you don't get suckered into paying high interest on a card that only gives a 5% discount.
Additionally, keep in mind that each time a creditor pulls your credit history for an application, it affects your score. For this reason, you'll only want to pursue a card that will likely be approved, and therefore limit the number of people checking your history and dinging your score. “Some cards with maximum benefits are hard to get—you need a good score for approval,” says Anderson. “So if youʼre concerned about your score, try using Credit Karmaʼs Approval Odds feature when hunting for a new card.”
-Written by Natalie Wearstler
Related links from LearnVest:
- When’s the Right Time to Give Your Kids Credit Cards?
- Credit Scores 101
- Sign Up for LearnVest’s Debt-Diminishing Financial Bootcamp