It is far too common that people wait to seek credit when they absolutely need to, instead of building it up over time. They seek access to more credit when they are almost at the maximum limit on their current credit cards. However, this approach is counterproductive. Creditors tend to view such applications unfavorably, as they interpret them as an act of desperation. As a result, the chances of obtaining a new credit card or increasing the current credit limit decreases significantly.
On the other hand, individuals who apply for credit over time, maintain high credit scores and low utilization ratios have a more favorable chance of receiving new credit. They have a wide range of credit options available to them, and lenders are eager to extend credit to them. By utilizing this approach, they can secure new credit when times are good, when it is available, ensuring that they will not be in a position of having to look for credit during less favorable times.
By following this strategy, individuals can ensure they have more available credit than they require, allowing them to avoid the need to look for credit during unfavorable times. This approach not only gives you ample available credit at all times but the ability to apply for new credit at all times.