We regret to inform you, we are unable to approve your recent credit card application.
Our decision was based in whole or partially on the following factors…
Blah blah blah. You know the rest.
So, I got my first denial a few weeks ago.
But don’t worry, please, hold back your tears. It’s no big deal, and I wanted to write this for those of you out there that are really scared of getting denied. In reality, a couple of denials won’t destroy you or your credit.
I mean, it’s not like you serve jail time for just asking about a new credit card…
I get plenty of questions from my friends about my credit card habits. “Why do you have so many?” “Aren’t credit cards annoying?” “Can’t you just use a debit card?” “How do you stay out of debt?”
That last one, or variations thereof, is usually the most common. We’ve come to learn that ‘credit card’ is synonymous with debt. You know what? For a lot of people, that’s true.
But it doesn’t have to be! I follow just a few rules to make sure I make money (or miles!) off of credit card companies, not the other way around.
Here are my three cardinal rules of credit cards.
This post is inspired by a friends’ recent request for advice. A lot of the time, people see great offers for 0% APR. We think,
Wowee, that’s great! Now I can buy my [insert wonky overpriced consumer item here]! It’ll be so cheap, since there’s no interest on the first year!
But wait, there’s more!
More interest, that is. See, most of these offers are deferred interest, not waived interest.
I’ve had a Discover it card since August 2013. It was my second card, after a $500 limit credit card from my local bank, but that was a long time ago, in a galaxy far, far away from my travel hacking life.
Anyway, when I first opened my it card, I was approved for a credit line of $2850. I thought “Great! Now I can put all my spending on here, and earn cash back for it!” Well, this is exactly what happened, and my master plan worked great for a while.