I lost my job last year and my credit score took a dive when I couldn't pay some of my bills on-time. Since then, I started working again and I've seen some small improvements to my credit score. Should I risk getting denied by applying for a card for good credit? Or, should I start off with an offer designed for poor / average credit?
It’s impossible to say whether or not you’ll get approved for a credit card for good credit (espeically without knowing your credit score). Even if we knew your credit score, it would still be difficult to say for sure since credit card companies use a variety of factors to determine approvals and their guidelines change all the time.
But putting that aside, being denied for a credit card isn’t that big of a deal. Yes, it will reduce your credit score by a few points (for a short period of time), but typically, denied applications only affect your credit score for several months. The only time it has a major impact is if you apply for multiple credit cards — and keep getting denied. Once again, this would only affect you for a short period of time.
Although I wouldn’t recommend taking a risk if you were considering a big loan soon (ie: auto or mortgage), if a loosing a couple points for a few months isn’t a big deal, GO FOR IT! If you get denied, you might have to consider an offer for average / fair credit.