Hi there, it's Ernest from Trip Astute. In this video, we're exploring some tips and
tricks that you can use when applying for credit cards.
(light chiming music)
For most people,
credit cards are the best way to earn points and miles for free travel, especially
with opening bonuses. However, applying for credit cards can be a difficult
process, even for those who have been collecting points for years. When you get
deeper into the hobby, you're likely to have a large amount of credit offered to
you, so issuers can be sometimes hesitant to extend more credit to you. So
in this video, I'm going to share my top ten tips and tricks to improve your
chances when applying for credit cards. Number one: Understand your credit score
and history. It used to be pretty tough to get a hold of your credit score.
However, nowadays, it's easier than ever. Most credit card issuers provide you
access to your score. There's also free sites like Credit Karma, Credit Sesame,
and Quizzle, which should give you an idea of your score. Just keep in mind
that most of these services are pulling from one of the three credit bureaus, so
you may want to check in with all three. Lastly, you can request a full credit
report every year from annualcreditreport.com, which includes
data from all three major credit bureaus. I recommend reviewing your credit report
every year to make sure that you don't have any misreported accounts or
discrepancies. Number two: Search for the best available offer when applying for a
specific card. Make sure you do a quick Google search to see if there are any
better offers for the card. It's common for issuers to have
different bonus offers depending on the landing page, so it pays to look around
for the best offer. Number three: Take a screenshot of your offer when applying.
This not only helps if you don't receive your offer and need to contact the
issuer, but also helps you to remember the terms and conditions for the bonus.
Most bonuses will require you to spend a certain amount within the specific time
period, so it's helpful having a record of it. Number four: State your entire
income. This is an area where people often shortchange themselves. Make sure
you report your total income from all sources. I know many of you have side
hustles and gigs. Don't hesitate to include the income that you earn from
these sources in your total. I definitely advise against misrepresenting the
information in any way. You just want to make sure that you're representing the
big picture and improving the odds for an approval. Number five: Apply for
multiple cards at once. This is a common trick used by the points community and is
sometimes referred to as an "app-o- rama" or AOR. If you're looking to apply for
two or more cards at once, it's better to apply for the cards on the same day,
preferably around the same time. The reason for doing this is because the
issuers will not see the credit inquiry from the other issuers if you apply at
the same time. Keep in mind that you shouldn't use this trick to apply for
cards from the same issuer, as they will definitely see your multiple
applications. But if you were to apply for a card from American Express and one
from Capital One on the same day, it should work just fine. Also, make sure
your credit score is high as you'll like to see a slight drop after the multiple
credit inquiries are processed. Number six: Be mindful of your application dates
and credit inquiries. The general recommendation is to wait at least 90
days between new credit card applications or "app-o-ramas." Of course,
there are other factors to consider like Chase's 5/24 rule. For more
information, check out our Chase Ultimate Reward's 101 video. Number seven: Call the
reconsideration line if you're not approved. If you're not immediately
approved for a card, you may want to consider calling the issuer's
reconsideration line. Just be sure to be polite and respectful. When I call these
lines, I usually say that I wanted to call in and see if there was any
additional information needed to get my application approved. The only caveat is
business cards. I would not call the reconsideration line until you get an
actual denial as they often have a more comprehensive review and approval process.
Number eight: Consider transferring your available credit. I found that issuers
are sometimes reluctant to give you additional credit if you already have a
lot of available credit with them. When speaking to a rep on the reconsideration
line, you may want to consider offering to move some of your available credit to
the new card if they're willing to approve you. I've done
this several times and it seems to work really well, especially when I've had a
premium card with a huge available credit limit that I never planned to
utilize. Number nine: Consider downgrading cards or changing them to
other products. This tactic won't allow you to get a bonus, but it can be useful
when you want to get rid of a card with a high annual fee. Instead of simply
canceling the card, you may want to opt to downgrade or convert it to a free
version of the card. An example would be converting a Chase Sapphire card to a
Freedom card, or a American Express charge card to an Everyday card. This not
only allows you to retain your points, but also avoids any negative impact on
the age of your accounts on your credit history.
Number ten: Don't limit yourself to personal cards. Many of you are eligible
for business cards, even if you don't have a full-blown business. Things like
selling items online, performing a service, or consulting, can make you
eligible for a business credit card. Just make sure you're transparent about the
income that you earn. You don't need to have a huge income stream for them to
approve you, and it's better to be truthful and honest to avoid any audits.
We'll do a video on the topic soon with more details. And those are my top ten
tips and tricks when applying for credit cards. Do you have any suggestions on
improving your chances for getting approved? If so, please share them below.
Also, let us know if you have any questions. I've included some helpful
links in the video description. If you enjoyed this video or found it useful,
please hit the "like" button and consider subscribing. It's completely free and
you'll get notifications on all our new updates. Also, check out our two Points
and Miles playlists. One is geared for those of you starting out in the hobby,
and the other is for those of you who are more advanced and experienced. Until
next time, travel safe and travel smart.