CNBC Select breaks down whether you should get a credit card depending on your
needs and current financial situation. Credit cards are one of the most common
ways you can build credit and finance large purchases. Plus, many come with
additional perks, like the opportunity to earn cash back or miles. However, you
should take a minute to consider whether it's the right time to add a new card
to your wallet before you apply. Many people open their first credit card at age
18 to establish a credit history, while others apply for a new card when there's
a big trip on the horizon or to earn rewards. But there are also several
alternative ways to build credit than just opening your own credit card, such as
reporting your monthly phone and utility bills to Experian Boost or becoming an
authorized user on someone else's card. You should take the time to evaluate
your reason for opening an additional credit card, since the more you have, the
more there is to keep track of — from multiple due dates to various statement
balances. Below, CNBC Select breaks down how to decide if you should get a new
credit card. We review situations when it probably makes sense to apply for more
credit and when you should refrain for the time being. When to get a credit card
If you want to open a credit card, these are the best times to apply: You turn
18: Credit cards require you to be 18 in order to open your own account, making
it the ideal time to get a card. Opening a card at 18 allows you to get a
jump-start on building credit so you can establish a good credit history sooner
rather than later. Keep in mind that you'll need to have a steady source of
income to qualify. (Check out the best college student credit cards.) You have
good credit: If your credit is in good standing, meaning you have a credit score
of 670 or greater, you're in a strong position to qualify for a credit card.
Plus you can likely qualify for some of the best cards that require good or
excellent credit. You want to build or rebuild credit: If you don't have a
credit history or have poor credit, opening a new card can help you raise your
credit score. Secured cards, like the Capital One Platinum Secured Credit Card,
can be a great option and often provide more lenient credit requirements
compared to unsecured cards. You want to finance a large purchase: Many credit
cards offer intro 0% APR periods that can provide you with a long period of time
to finance large purchases, such as appliances or furniture. The U.S. Bank Visa®
Platinum Card has a 0% intro APR for the first 18 billing cycles on purchases
and balance transfers (then 18.74% - 28.74% variable APR.) Balances must be
transferred within 60 days from account opening. You're paying off debt: If
you're struggling to pay off credit card debt, a balance transfer credit card
can help you rid yourself of debt faster and cheaper than keeping it on a high
interest card. Balance transfer cards provide interest-free periods up to 21
months, though you'll typically need good or excellent credit to qualify. You're
planning a vacation: Credit cards can provide travel insurance for trip delays
and cancellations, lost luggage reimbursement and more when you pay with an
eligible travel credit card. This is a great way to save on added insurance
plans and provides peace of mind when you book vacations. When not to get a
credit card While credit cards can be a great asset, they’re not always the best
option — especially under these circumstances: You spend above your means: While
a line of credit can be helpful, it can also be a risk for people who spend more
than they can afford to repay. It can be harder to limit credit card spending
compared to debit card or cash transactions since you don’t need to have the
money available at the time of purchase. If you overspend and don’t pay your
bill in full every month, you can fall into costly credit card debt. You lost
your job: Card issuers consider your income when deciding your approval chances,
and a reduced income can affect your ability to qualify for a card since it
shows you have limited funds to repay debt. If you apply for a card with a
reduced income, you may be denied and the inquiry from submitting an application
will likely cause your score to drop a few points. You plan to apply for a major
financial product: If a home or new car is in your near future, you should hold
off on opening a new credit card since applications result in a hard inquiry
that can potentially lower your credit score. This may also reduce your chances
of getting the best mortgage or auto loan rates. You recently applied for credit
products: When you apply for new credit products (whether it’s a credit card or
loan), an inquiry will typically appear on your credit report, which can lower
your credit score. If you recently applied for several credit products, the dip
in your score may reduce your qualification odds. Plus some card issuers
consider how many cards you’ve opened within the past two years when deciding if
you qualify. For instance, Chase has the 5/24 rule where you can’t be approved
for most Chase cards if you’ve opened five or more personal credit cards within
the past 24 months. Bottom line At the end of the day, getting a credit card can
either be a great way to build credit and finance purchases but it can also hurt
your credit score and cause debt — it ultimately depends on your individual
situation. Opening a credit card is a big decision that shouldn’t be made based
on a welcome bonus or unique card design, but instead based on your current
ability to repay charges and the positive impact it can have on your credit
score and finances. Don’t miss: How to manage multiple credit cards 12 things
you may not know affect your credit score 4 steps you can take now to help you
clean up your credit report Information about the Capital One Platinum Secured
has been collected independently by CNBC and has not been reviewed or provided
by the issuers of the cards prior to publication. Editorial Note: Opinions,
analyses, reviews or recommendations expressed in this article are those of the
Select editorial staff’s alone, and have not been reviewed, approved or
otherwise endorsed by any third party. CLICK HERE TOGET CREDIT CARD::::
Consider these situations before you decide if you should get a credit card
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