Don't make this costly mistake before applying for Apple Card

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The release of Apple Card is imminent, and people are just waiting for an announcement in their inbox that Apple Card applications are open. While we still are waiting on an actual release date, Apple reiterated at WWDC 2019 that the card will be released this summer, so we can expect it in the next few months. Since its release is getting closer, it's a good idea to make sure your credit score is solid so that you have a good chance of being approved.

One mistake that people make when applying for, or after getting approved for a credit card, is to close other credit cards that they have. Closing a credit card can make sense in certain situations. Perhaps you're trying to avoid debt, you just have way too many cards, or you're upgrading to a different card that serves your needs better. While these are all valid reasons, closing a credit card can have a negative effect on your credit because of two things: utilization and length of credit history.

Credit card utilization and length of credit history are two of five things that make up your FICO credit score. Closing a credit card will increase your credit card utilization since you will have less overall credit limits. Depending on how much this utilization increases by, your credit score could decrease. This, of course, would be temporary if you eventually either pay down your credit card debt or open a new credit card. The other is the length of credit history, which is also important to the credit bureaus as it shows them you have responsibly held credit for a long period of time. If you, for instance, close the credit card that you've had open the longest, your length of credit history will go down and also potentially pull down your credit score.

wallet holding a few credit cards and cash

While no one needs a heap of credit cards hanging around forever, keeping a few credit cards open at the same time, for a long length of time, has its benefits. For one, you'll continue to grow your credit score as long as you keep your accounts active, your balances low, and your payments on time. You also can focus on a few cards that you've identified as the best cards for your financial plan that will get you the best rewards possible. While Apple Card is bringing some fantastic rewards and solid money management features, it doesn't do everything. Do some research to find out the cards that you already have that best pair with your Apple Card. Together, you'll have the best of both worlds.

Joe Wituschek

Joe Wituschek is a Contributor at iMore. With over ten years in the technology industry, one of them being at Apple, Joe now covers the company for the website. In addition to covering breaking news, Joe also writes editorials and reviews for a range of products. He fell in love with Apple products when he got an iPod nano for Christmas almost twenty years ago. Despite being considered a "heavy" user, he has always preferred the consumer-focused products like the MacBook Air, iPad mini, and iPhone 13 mini. He will fight to the death to keep a mini iPhone in the lineup. In his free time, Joe enjoys video games, movies, photography, running, and basically everything outdoors.