Credit Card FAQ
Can I Apply for More Than One Credit Card at a Time?
If you are thinking about applying for a single credit card, let alone more than one, there are a few things that you have to keep in mind. Many people have developed the perception that seeing as though a credit card allows you to buy things on credit, the more credit cards a person can own will automatically mean the more things that they can buy on credit. Every credit card that you apply for is known to have a set credit limit. This limit is an amount that is set on the basis of your credit history in regards to how much you can spend on your particular credit card in a month.
The way, in which a credit card limit is set and calculated, the same process is involved when it comes to applying for more than one credit card. Say you had asked such a question a couple of years ago before the recession, you would have seen that applying for as many credit cards as you had wanted would not have been an issue. It was due to these reasons that most of the global crisis occurred in the first place as ridiculous amounts of lending started to arise. Most people could not afford the repayments, yet lending companies were still willing to issue more credit cards to those same owners.
As the globe as been hit quite severely with the current economical downturn, many changes have been bought into place by the new government; and rightly so. All financial lending companies that issue credit cards are known to be much more strict and rigid when it comes to approving a credit card application due to the fear of the last recession. One source that is mainly used to determine whether or not you are able to apply for more than one credit card at a time is all to do with your credit history. You credit history is a summary of all your income, assets, expenses and liabilities. It calculates an estimate to see whether or not you have good or bad credit rating. Having a good credit rating simply means that you are able to pay off debt that you have taken out in the past five to ten years. However if you have a poor credit rating, this means that you have not been able to meet the repayments.
Depending on strong or how weak your credit rating score is will either increase or decrease your chances of being able to apply for more than one credit card at a time. It is recommended that before committing yourself to countless amounts of debt in what ever form they are being offered in, you carefully take the time to see whether or not you really need it. At this particular moment in time, it would be a good idea to consult with a financial advisor to see the possible options that you may have available. The key is to never rush into a deal, especially when it involves taking things out on credit.
Also read: How Many Credit Cards Should I Have? or discuss at Applying for few credit cards at once.
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