Have you seen LendUp’s Fast Financial Facts? We created LendUp’s Fast Financial Facts as a way to help consumers navigate their finances. In a few minutes, or less, you may learn something new about how to get the most out of your finances. You can watch the videos by following the links.
Today, we’re sharing some facts to consider when choosing and applying for credit.
Choosing a credit card: There are many cards to choose from, but it’s best to know what makes the most sense for you. Make sure you cross-reference what credit cards offer and try not to get caught up in the perks. You should start slow and once you are able to take on more responsibility, you could reassess what you want out of a card.
What is a secured credit card?: A secured credit card could help you build credit, but you have to give the lender the amount you want to use as security for the line of credit. This might be a good option for some, or the only option for someone with no credit. If you recently moved to the U.S. from another country, or have damaged credit, this may be a good option.
What Being "Declined" Means: Getting declined for a credit card or loan is not ideal. However, if it happens, you should find out why through an adverse action notice. This may help you understand what you could do in the future to improve your likelihood of being approved.
Hard inquiries vs. Soft inquiries: If you’re making a big purchase, applying for an apartment, or even starting a new job, companies may be interested in your credit. Too many “hard” inquiries on your credit report could damage your credit. A “soft” inquiry may appear on your credit report, but it does not not affect your credit score. It’s important to know what type of inquiry credit providers will make, so make sure you ask!
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Disclaimer: LendUp is not providing you financial, legal or tax advice. If you need or want such advice, please consult a qualified advisor.