Money Management

Securing a credit card may sound like a daunting task, but the truth is it can be a quick process. Read on to learn about what to expect. 

If used correctly, a credit card can be an essential financial tool that brings convenience and security to any purchase. Whether you want to book a flight, pay for a hotel stay, or shop online, a credit card can be a lifesaver. It can also come with hefty rewards. However, getting a credit card is not always a straightforward process. It involves some paperwork, communication with the lender, and occasionally, patience for the approval process. Here is how long it takes to get a credit card and what factors can affect the timeline.

Applying for a credit card

Before you can get a credit card, you need to apply for one. Most lenders offer online applications that you can fill out in a matter of minutes. The application requires some personal information, such as your name, address, Social Security number, and employment details.

You also need to provide your annual income and often, your monthly housing payment amount (and whether you rent or own your home). Once you submit the application, the lender will review your information and decide whether to approve or deny your application.

Credit card approval time

The credit card approval time can vary depending on the lender and the type of card you apply for. Some lenders offer instant approval for a credit card. Other lenders may take a few days to review your application and give you a decision.

During this time, it may check your credit report and verify your income. Upon approval, certain credit cards can be used immediately, without the need for the physical card. One example is applying for a store credit card in-store; if approved, the account can be used for immediate payment.

Credit card delivery time

Once your credit card is approved, the lender will send you the physical card by mail. This can take anywhere from a few days to a couple of weeks, depending on the shipping method and your location.

Some lenders may offer expedited shipping for an extra fee, but this may not be necessary in most cases. Even if you don’t have the physical card, you can start using your card through online banking or mobile wallet apps, which allow you to make purchases and payments before the card arrives.

Credit card activation time

After you receive your credit card, you need to activate it before you can use it. This usually involves calling the lender’s customer service line or visiting its website to complete the activation process.

Some lenders may require you to set up a PIN or authenticate your identity before activation. Once your card is activated, you can start using it for purchases, cash advances, and balance transfers. However, it’s important to read the terms and conditions of your card carefully to avoid fees, interest, and penalties.

Credit card use’s impact

Finally, keep in mind that using your new credit card can affect your credit score and borrowing power. It’s essential to use your credit card responsibly by making timely payments, keeping the balance low, and avoiding unnecessary fees and charges.

This not only improves your creditworthiness, but also helps you build a healthy financial profile for future needs. Credit card issuers commonly specify the necessary credit score range for each card they offer. By understanding your own credit score, you can make informed choices and apply for credit cards that you are more likely to be approved for.

If you want even faster approval for future cards, apply for a card for which you are already pre-approved.

Getting a credit card can take anywhere from a few minutes to a few weeks, depending on the lender and the card type. However, it’s important to remember that a credit card is not just a financial tool, but also a responsibility. By using your credit card wisely, you can reap the benefits of rewards, cash back, and convenience while avoiding the pitfalls of debt, bad credit, and financial stress. So, take your time to research, compare, and choose the right credit card that fits your needs and goals. With the right approach and the right mindset, you can make the most of your credit card.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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It’s not uncommon for older people to experience financial difficulties. Read on to see how you can avoid landing in a similar situation. 

Social Security plays an important role in many people’s retirements. But seniors who rely on those benefits too heavily tend to struggle financially.

Among seniors aged 65 and over, Social Security represents 90% or more of retirement income for 12% of men and 15% of women. But even when those benefits comprise a smaller percentage of total income, seniors can struggle nonetheless.

In fact, more than 16.5 million seniors aged 65 and over are economically insecure, with incomes below 200% of the federal poverty level, according to the National Council on Aging. And if that’s a fate you’d like to avoid, then the solution could boil down to funding a retirement savings plan consistently while you’re working.

Small contributions can go a long way

Many people neglect their retirement savings because they have other expenses, like their car payments and mortgage loan payments, monopolizing their incomes. But if you don’t make an effort to fund an IRA or 401(k) plan, you might end up struggling financially once you’re retired and are no longer collecting a paycheck from a job.

Of course, the idea of having to fund a retirement plan can be intimidating. But one thing you should realize is that if you start saving for retirement at a fairly young age, and you make consistent contributions to your savings, you can grow a lot of wealth over time without having to part with a whole lot of money on a monthly basis.

In fact, let’s say you’re able to save $150 a month for retirement. And let’s say you do so beginning at age 30 all the way up until age 65, at which point you decide you’d like to retire.

The stock market has, over the past 50 years, delivered an average annual 10% return before inflation, based on the performance of the S&P 500 index. If your IRA or 401(k) plan delivers that same return, then based on your savings window and monthly contributions, you stand to retire with about $488,000. That sort of nest egg, combined with some income from Social Security, could make for the comfortable retirement you deserve.

Don’t force yourself to play catch-up

It’s easy to let retirement savings fall by the wayside when you’re younger and aren’t so focused on your senior years. But if you don’t start funding an IRA or 401(k) plan from a young age, you might end up in a situation where you’re forced to scramble later on in your career and part with lots of money on a monthly basis just to have a shot at a decent-sized nest egg.

Instead of landing in that boat, or, worse yet, ending up economically insecure like more than 16.5 million seniors today, commit to funding your IRA or 401(k) as soon as you’re able to, and make a point to invest that money rather than let it just sit in cash. You may end up very pleased with the amount of wealth you’re able to grow over time.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Property taxes can rise over time, and mine have downright soared. Read on to see how I’ve handled those persistent increases. 

Buying a home is hardly an inexpensive prospect — especially in New Jersey, where I live. Not only do property values tend to be high, but property taxes are downright exorbitant.

And I’m not just saying that based on my personal experience. The Tax Foundation reports that New Jersey does, indeed, have the highest property taxes in the nation.

Not only did the property tax bill for my current home start out high, but it’s increased exponentially over the past 14 years that I’ve been in my house. In fact, my taxes have gone up about $8,000 during that time. That’s pretty astounding given that many of the people I know in other states don’t even pay $8,000 a year in property taxes, or anywhere close.

Thankfully, I’ve taken a few key steps to deal with those horrendous property tax increases. And because of these key moves, I’ve never fallen behind.

1. I’ve padded my budget to allow for property tax increases

My budget contains line items you might expect an ordinary budget to have — things like food, utilities, and healthcare expenses. But I also have what I call an “oops” line item in my budget, and it’s meant to give me wiggle room in the face of sudden home repairs or climbing bills, whether it’s my property taxes or something else.

What I do is allocate a few hundred dollars a month to this “oops” category, and when that money doesn’t need to be spent, it just stays in my checking account. That way, I have a little cushion for things like property tax hikes.

2. I’ve kept my mortgage payments affordable

When my husband and I purchased our home 14 years ago, it was not at the top of our budget. Meanwhile, thankfully, as we’ve progressed in our careers, our income has easily doubled from where it was back then. But we intentionally opted not to upsize our home because we wanted to keep our mortgage payments affordable. That, in turn, makes it easier to cope with higher property tax bills.

3. I’ve maintained an emergency fund

Not only did my property tax bill rise a boatload between my first year in my home and my second year, but my tax assessor came after us for back taxes because it had underbilled us the year prior. Back then, money was tighter, and our paychecks couldn’t absorb that hit. But thankfully, we had an emergency fund to tap to cover that massive increase of several thousand dollars.

All told, I’m really not happy about the fact that my property taxes have risen so much since buying my home. But I’m also not looking to move anytime soon. We live in New Jersey because it gives us access to certain amenities we want, and for my husband’s career in particular, being adjacent to New York City is important.

As such, I’ve come to terms with the fact that my property taxes are just plain going to be high. My hope, however, is that they won’t rise as much in the next 14 years as they did over the past 14.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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