Think Twice About Applying for Credit
Kiplinger's Personal Finance|October 2021
Credit card issuers are offering a lot of incentives, but your credit score could suffer.
By Michael Korsh

Americans paid down billions in credit card debt during the pandemic, with balances declining 17% in the first quarter of 2021 compared with a year earlier, according to the Federal Reserve Bank of New York.

But now that the economy is recovering, credit card issuers are eager to entice new applicants with flashy deals and sign-up bonuses. For example, the Chase Sapphire Preferred Visa and the American Express Platinum card are offering up to 100,000 bonus points for new cardholders.

While you might be inclined to take advantage of these deals, some short-term credit decisions could lead to long-term damage to your credit score. Whether you’re applying for credit for the first time or have an established credit history, it’s important to consider how new lines of credit could affect your ability to obtain credit down the road.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM KIPLINGER'S PERSONAL FINANCEView All

4 Trends for the Coming Decade

From how long you work to where you choose to live, retirement will change in ways you may not expect.

6 mins read
Kiplinger's Personal Finance
December 2021

WHERE TO INVEST IN

Investors will have to curb their enthusiasm as markets get back to normal.

10+ mins read
Kiplinger's Personal Finance
January 2022

When to Call In a Professional

For some investment categories, choosing an actively managed fund makes sense.

5 mins read
Kiplinger's Personal Finance
January 2022

Shop for a New WIRELESS PLAN and Save Big

Competition is fierce, and carriers are dangling free phones and streaming subscriptions.

10+ mins read
Kiplinger's Personal Finance
January 2022

PRESCRIPTION FOR 2022 - These Health Care Stocks Should Thrive

Pharmaceutical and health sciences firms are riding powerful demographic trends amid a golden age of innovation.

7 mins read
Kiplinger's Personal Finance
January 2022

My Top 10 Stock Picks for 2022

STREET SMART

5 mins read
Kiplinger's Personal Finance
January 2022

Lower Taxes on Your RMDs

When you turn 72, you’ll have to start taking minimum distributions from your IRA and 401(k). These strategies will help trim Uncle Sam’s take.

9 mins read
Kiplinger's Personal Finance
January 2022

How to Choose the Right Payment App

Using PayPal, Venmo, Zelle and other apps is convenient, but there are pros and cons to each.

9 mins read
Kiplinger's Personal Finance
January 2022

ENERGY STOCKS - Storming Back

A combination of tight supplies, rising demand and continued economic growth is fueling the energy sector.

5 mins read
Kiplinger's Personal Finance
January 2022

Best Sources of Emergency Cash

MILLENNIAL MONEY

3 mins read
Kiplinger's Personal Finance
January 2022