Many people, including myself, can travel virtually for free by using their credit card points. Getting new cards, earning the bonus points, and swapping them for miles or cashback can equal a free vacation, often in first class.
However, you can’t simply dive in and start applying for credit cards. Strategizing is crucial when signing up for welcome bonuses and accumulating miles.
Applying for credit cards is akin to navigating a game of Monopoly or Ticket To Ride. Questions like “Where do I put my tokens?”, “When should I take the jump?”, “Go for that deal or not?”, and “Collect those rewards?” come into play.
Over my years in the credit card industry, I’ve developed some outstanding tips for applying for credit cards. Even I use these tips when going for new cards. I'd love to share them with you and explain the reasoning behind each tip.
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Application Tips and Advice
First, a word about following the tips. The application tips I will outline shortly are the rules of our game. Follow the rules, and you win. Ignore the rules, and you lose.
By using these tips when applying for credit cards, we’re basically outsmarting the bank. We take the bank application rules every bank has in place, view them all on a big board, and apply for cards in a way that pleases all bank rules simultaneously. We work in our favor while staying in line with bank requirements.
The result? We maximize our chances for approvals because we followed the bank rules and strategized our credit card applications so well that one credit card application did not damage any others we were aiming for.
If you’re out to accumulate many signup bonus rewards, join the game. Here are the rules to play by:
1. Get Two Credit Cards and First Build Credit for a Year
First and foremost, to be eligible for opening new credit cards, you need a strong credit base.
Tip: Apply for two beginner credit cards and have them open for one year. Beginner cards can include the Journey Student Rewards from Capital One and the Discover It card. These cards are easy to get approved for even without prior credit. Once you have these open for a year and keep them in good standing, you should have good enough credit to move on to the next tip.
2. Chase Cards Go First
When searching for a welcome bonus, first search for Chase cards due to the Chase 5/24 rule.
Note: Chase will not approve you for a card of theirs if you have opened 5 or more cards within the past 24 months, regardless of the issuer. To avoid reaching the 5/24 limit before applying for a Chase card, start with a Chase credit card.
3. Always Pop in Some Business Cards in Between Personal Cards
Most business cards do not report on your personal credit report. Therefore, instead of applying for all personal cards in one go, sprinkle in some business cards between personal cards so that your personal credit report doesn’t get filled up with new accounts too quickly.
Tip: When you apply for business cards, you will still get new welcome bonuses, but the new accounts won’t report to your credit report, giving it a breather.
4. Always Do Two Amex Cards the Same Day as They Are Very Good at Approving Both
Amex has been good about approving two cards even in one day, so give that a shot.
Tip: Another reason to apply for two Amex cards in one day is that if you do, the credit inquiries for those two cards will be combined into just one credit inquiry. This is great because every credit inquiry on your report has a slightly negative impact on your score. So one less credit inquiry is a reason for joy.
5. Always Do Two Bank of America Cards the Same Day as They Are Very Good at Approving Both
Bank of America is also great at approving you for two cards in one day, so if you get approved for one, go for a second.
6. Always Do Two Barclays Cards the Same Day as They Are Very Good at Approving Both
Barclays is also great at approving you for two cards in one day, so if you get approved for one, go for a second. You might have to call the reconsideration department to push for the second card to get approved.
Key Takeaways
- Build Credit First: Start with beginner cards to build a strong credit base for future applications. This sets you up for success.
- Chase First: Apply for Chase cards early due to their 5/24 rule. This strategy ensures you don't miss out on valuable Chase bonuses.
- Mix Business and Personal: Applying for business cards can prevent your personal credit report from filling up too quickly, maintaining a healthy credit profile.
- Double Up Applications: Applying for two cards from the same issuer on the same day can combine credit inquiries, minimizing the impact on your credit score.
By following these tips, you can effectively maximize your credit card rewards and travel for virtually free.
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