How typically must you apply for a bank card? Technically, you are able to do so any time you want. However every new inquiry can lower your credit score rating by a couple of factors, so it’s higher to attempt to get a bank card when it’s a real want.

With that in thoughts, listed here are six examples of the perfect time to use for bank cards.

1. You will have good credit score

A good credit score rating, that means 670 or higher on the FICO^® scoring scale, can put you in a major place to use for a brand new bank card. Why? As a result of a better credit score rating might help you unlock higher card choices.¹

Premium bank cards can provide advantages like:

• Increased reward charges on purchases
• Beneficiant introductory bonuses
• Unique advantages or options, like account anniversary reward bonuses or journey perks

In fact, it’s solely value making use of for a brand new bank card if you happen to plan to make use of these advantages. Notice that higher rewards or advantages can imply a better annual payment.

2. Constructing or rebuilding credit score

In the event you’re in credit-building mode, a brand new bank card might assist. Getting a brand new bank card might help you recuperate your credit score rating if you happen to’re:

You could want to begin with a secured card first to rebuild credit score. Secured playing cards sometimes require a money deposit to open. However when you make a sure variety of on-time funds, the cardboard issuer might convert you to an unsecured card.²

In the event you’re a scholar, chances are you’ll look into scholar card choices and even retailer bank cards. These might provide a better entry level to constructing credit score if you happen to’re ranging from scratch and don’t have a lot of a credit score historical past but.

3. When welcome bonuses are excessive

Bank card corporations can provide introductory bonuses to encourage folks to use for his or her playing cards. A large bonus provide might issue into your decision-making if you happen to’re questioning when to get a brand new bank card.

Listed here are a couple of particulars to recollect when evaluating bank card bonuses:

• There’s often a spending requirement you’re anticipated to fulfill to qualify for the bonus.
• You could be ineligible for a brand new account bonus if you have already got a bank card with the identical issuer.
• Making use of for multiple card to make the most of completely different bonus provides can lead to a number of arduous inquiries in your credit score studies.

The minimal spending requirement could also be within the $1,000 to $3,000 vary and also you may need 90 days to fulfill it. Assessment the specifics to verify it’s reasonable based mostly on the way you often spend.

4. You will have a steadiness with a excessive APR

Getting a brand new bank card may very well be a wise choice to consolidate high-interest balances. Steadiness switch playing cards allow you to mix a number of money owed at a low or 0% APR for a set interval.

You’ll pay no curiosity if you happen to pay the steadiness in full earlier than the promotional interval ends. Relying on the cardboard, the promotional charge might prolong for six to 21 months.³

Steadiness switch provides can prevent cash if you happen to’re disciplined about paying the steadiness off earlier than the common APR kicks in. In the event you’re in search of a steadiness switch card, keep in mind to verify any charges you would possibly pay to maneuver balances round.

5. You might be about to make an enormous buy

Paying for marriage ceremony bills, shopping for furnishings, planning a serious house renovation – these can all value fairly a bit of cash. Utilizing a bank card to cowl massive purchases in these sorts of conditions could also be preferable if you happen to:

1. Don’t have the money to pay or don’t need to drain your money reserves.
2. Wish to earn some rewards for what you spend.
3. Are making the most of a card that gives a 0% APR on purchases for a set time.

In the event you’re planning to get a brand new bank card with a 0% APR provide, evaluation your price range to ensure you pays the steadiness off earlier than the promotional interval ends.

6. To restore broken credit score

Credit score scores can drop for a wide range of causes and getting a brand new bank card might show you how to restore a number of the injury. Once more, the greatest methods to restore credit score embody making on-time funds and sustaining low balances in your playing cards.

Listed here are some examples of once you would possibly apply for a brand new bank card to restore your credit score.

• You’ve lately gotten divorced and also you’re attempting to reestablish a constructive credit score historical past in your title solely.
• You filed for chapter to do away with medical payments you couldn’t pay after a serious sickness and your rating took a serious hit due to it.
• You defaulted on a scholar mortgage however have gotten again on observe with funds and need to work on bettering your credit score responsibly.

Sure bank cards are particularly geared towards individuals who need to restore rating injury. Checking your credit score scores might help you slim down which playing cards you’re more than likely to qualify for.