Looking for a New Line of Credit

Looking for a new line of credit

Looking to add a few new lines of credit to your credit profile?

Looking for a new line of credit

Looking to add a few new lines of credit to your credit profile?

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?

Before you start repairing your credit, you should know what brings your score up or down. Your credit score is made up of many different factors, and it’s affected by things such as collections accounts and late payments. And credit repair involves fixing these kinds of marks that are negatively affecting your credit.

Before you get started, you need to look at your credit reports to see exactly what’s bringing your scores down and what doesn’t belong to you. Here’s how to do get started.

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.