What you should consider before signing up for a credit card

(InvestigateTV) – According to Forbes, more than 45.5% of consumers opened a new credit card last year, with most financial institutions requiring a credit check before approval.

Debt relief lawyer Leslie Tayne said credit checks are viewed as a “hard blow” and can lower your credit score by 20 or 30 points.

“If you’re on the verge of good credit, it may not be a good time to have your credit checked by multiple banks,” Tayne noted. “In addition, interest rates are very high, so if you don’t have great credit, you may find that your interest rates on anything new could actually be higher than what you pay.”

Tayne said this includes introductory pricing. She said that while the introductory interest rate on the new card is zero percent, people may find that ultimately, when the new interest rate takes effect, it will be higher than the current interest rate on existing loans or credit cards.

“If you have excellent credit, I would recommend contacting your current credit card banks and seeing if they have any offers on your existing cards to either lower the interest rates because you have paid on time and as a good “Customer apply, right,” she suggested. “Or if there are other financial products you could invest in that have limited impact on your credit score and other debts.”

Every American is entitled to a free copy of their credit report from annualcreditreport.com at any time.

Additionally, many credit card companies display the user’s credit score on their website or app every month.