Why I Stopped Applying For Credit Cards

In this video I’m going to break down, should you apply for a credit card right now or should you be staying away temporarily ( because after all, when you apply and you get rejected then you Ding, which lowers your credit score).

Why I Stopped Applying for Credit Cards

1. Here Are all the Red Flags
– As we all know the pandemic put about 36million People on unemployment ( maybe even more by the time you’re watching this video)
– And there are around 191 million Americans with credit cards ( that’s 58% of Americans, more than half of the population)
– But most anyone can get forbearance If they try hard enough by calling ( I called for a video and they said yes don’t worry)

Credit Cards Response:

No Payment Required if Affected or if you call: ( Discover)
– Now this makes sense if you really need the help and the assistance
– It’s better to request for help than to have bad remarks on your credit report
– However, some people are taking advantage of this, and not making payments and still maxing out their cards

Con: When things go back to normal, the interest will be the same ( it’ll cost you money), and if you been maxing out the card then the minimum balance will also be hired. ( also bad because your income won’t increase you might even lose your job. )

Application Changes: Income Check, I’ve heard even tax check
– When I applied for my first credit cards, I think I was 19 or 18
– I was making $1000 at the time, a month
– And I reported I was making 2k or 3k and I got approved with a 3k limit ( no one doubled check my credit score)

However today: credit cards are started to double-check your income and request for prof if it sounds fishy, and they might even request a tax return.

Pro: Basically credit cards can be more careful about who they give credit too, but also means if they keep this up, they’ll have fewer people qualifying. ( unless they give lower limits)

Lowering Limits: to Existing Users and Also New Users
– So if you had a limit of 5k and now all of sudden it went down to 3k, its because they are adjusting the limits to prevent users that may be a high risk into going into massive debt
– Usually, credit cards want you to go into debt so you can pay interest for a long time
– But now the risk is too high, because of the economy and also employment.

This is Proof: That credit cards give you a higher limit even if you don’t qualify for it really, and now they are making adjustments because It might hurt them.

Overall:
– All of these responses I think will be temporary unless it’s the new norm
– However, credit companies are creative so if they cant approve you for a high limit
– They’ll most likely start accepting applications with low limits and then raise your limit.

2. So Should you Apply or Not apply
– the answer it depends on your situations
– and why you want your credit card
– for example

Building Credit Card History:
– apply for a secured card instead ( capital one, discover and open sky if you have really bad credit) are all good options and you’ll have a very good chance of getting accepted with capital one so do that one first.

Just want a Card for the Points or any other reason:
– be truthful about your income
– make sure you’re credit score is good
– and also make sure your credit utilization is also good

: If you already have high credit score balances, and already seem risky, the odds of getting rejected are higher.

Video: https://www.youtube.com/watch?v=SEa22qSQMZQ

3. What I think
– These all just minor adjustments
– And that will either become the new norm or be temporary
– So the key is to make sure to use your credit card correctly.

And:
– I won’t be applying currently
– I’ve already built my credit score to 756
– And all I’m doing now is maintaining it

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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