Getting a New Line of Credit Is Easy
Are you looking for a new line of credit? Maybe you just want a credit card with better rewards. Or perhaps you’re looking to buy a new home and need a mortgage loan. Or maybe you just want to expand your credit profile. Either way, finding exactly what you’re looking for can be overwhelming.
The fact is, there’s a lot of credit out there. The credit industry can feel over-saturated with credit cards, mortgage loans, auto loans and much more. How can you find what you’re looking for? And how can you know that you qualify?
We’ve got some good news for you: you don’t have to navigate the credit-approval process alone. At Credit.com, we’ve got tools that can help you find the right line of credit for you.
What Is a Line of Credit?
In the simplest terms, a line of credit is a specific amount of credit that is extended by a lender to a consumer. This comes in a lot of shapes and sizes: credit cards, loans, HELOCs, CDs, etc. Basically, lines of credit let you borrow a certain amount, which you have to pay back on time.
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Different Types of Credit
Now that you know what a line of credit is, let’s go over the different types of credit. That’s right: there are different types of credit. Let’s get into them:
- Revolving credit: This is probably the type of credit you’re most familiar with, because credit cards are revolving credit. When consumers take out revolving credit, they have a set credit limit. But as soon as they pay their debt back, they can borrow up to their credit limit again.
- Installment credit: Installment credit, on the other hand, is a loan for a fixed amount of money. You have to pay off installment credit with a specific number of monthly payments. And once you pay off your debt, the installment loan is closed. A common installment loan is a mortgage.
Things to Keep in Mind Before Applying for Credit
Before you apply for that credit card or loan, there are a few things you should keep in mind:
- Know your credit score. Credit offers typically require specific credit to qualify. Let’s say a credit card requires good to excellent credit. If you have poor credit, the chances of you getting approved are pretty slim. So before you apply for any line of credit, make sure to check your credit score.
- Hard inquiries. Lenders perform hard inquiries into your score to see if you qualify. If you don’t qualify, then that hard inquiry would’ve essentially been for nothing. Plus, lenders don’t like to see a history of multiple hard inquiries on your credit report. It hints that you’re desperate for credit, and haven’t been able to get approved.
- Your current financial situation. Before you make any financial move, it’s important to know where your finances are currently. For example, if you already have a decent amount of credit card debt, you might not want to apply for a new credit card. If you’re looking for new credit, but you’re not sure if you should apply, you could consult a financial expert.
Tools to Help You Apply for a New Line of Credit
Remember how we said that applying for credit can be intimidating? We’ve got good news: at Credit.com, we’ve got some great tools that put in some of the work for you.
Credit Report Card
Let’s start with our free option. Your credit report card offers a ton of insights, such as your Experian VantageScore 3.0, updated every 14 days. It also grades you on the five key factors that go into your score–payment history, credit utilization, credit age, account mix and inquiries–which can help you know where to improve.
But if you’re looking for a new line of credit, your credit report card can help. It offers personalized credit recommendations, all based on your credit score. That way you can apply for those lines of credit with confidence.
ExtraCredit®
If you’re looking for a tool with a little more oomph, look no further than ExtraCredit. Think of it as your comprehensive, one-stop-shop credit solution. For $24.99 a month, you’ll get access to five features:
- Track It. With this feature, you get 28 of your FICO® scores.
- Guard It. This feature automates some monitoring to help protect your identity and your credit.
- Build It. Get your timely rent and utility payments reported on your credit file. This adds more to your credit history so you get credit for bills you’re already paying.
- Restore It. ExtraCredit users get an exclusive discount to a leader in credit repair.
- Reward It. You can get a $5 sign-up bonus and cash rewards as high as $2500 by applying for and getting approved for offers through the ExtraCredit Reward It portal.
All five features pack a mean punch, but you’ll probably get the most use from Reward It. When you sign up for ExtraCredit, we’ll send you your own ExtraCredit card and after your first paid month, you’ll get a $5 reward. But it gets better. You’ll receive personalized financial and credit offers, all based on your credit score. So if you’re looking for a new line of credit, we’ve got your back.
If you apply and get approved for one of those select offers, we’ll celebrate with you by loading up your ExtraCredit debit card with the reward amount for that offer. One as high as $2500. All for you, because of your smart financial decisions.
Find Your New Line of Credit
We’re probably telling you something you already know, but finding a new line of credit can be overwhelming. With so many options, it can be hard to choose the right one. Luckily for you, we’re here to help. Sign up for our comprehensive credit tools to find the right credit for you today.
