Best way to go about applying credit cards for a newbie

If you are just getting started, there is a sequence of credit card applications that would help while accumulating points. Generally speaking, the cards applications tends to drop over time and you focus on select few that has higher payoffs in terms of giving you points or has exception bonus offers. But at the back of your mind, you might have this pesky thought of this particular card that has been out of your grasp always. This post is a lesson learnt from my experience that can be used by others, especially new comers as they go about applying cards in a certain sequence. The first instinct is to go after the big hitters or the “50k points” cards. That is quite logical given that you can redeem them for higher points or cash back or miles and get the maximum payoff. Usually at the start, there is also lot of big-ticket items to spend on. Beginners have fees, rents, simple spending on items such as furniture or clothes or electronics including the usually expensive laptops/cameras among others.

Why is this important? Banks such as US Banks or Wells Fargo have very stringent credit card lending practices and policies and they scrutinize your credit history more stringently compared to a Bank of America. So it pays to sequence your application. Without much ado, if I had the opportunity to time travel and apply for a new set of credit cards on my as such unblemished credit score/history, I would go with the following order:

1. Barclays Bank: Arrival Plus here and then put some good spending and immediately apply for the US Airways card ( as it is being closed out of this bank entirely ) and hopefully apply for one another card here such as the Lufthansa card.

2. US Bank: Another stringent bank and it is better to apply their Flexperks card off-hand before you go about apping more cards with other banks

3. Wells Fargo: They scrutinize your credit history like nobody’s business. Better to apply for their Propel family cards off-hand.

4. Chase/Bank of America/Citi/American Express: All in one go. In a single day, you can just go about apping them after you have sorted out their credit card bonuses

5. Credit unions like the local ones or the national ones – though they are not picky, some like the NASA Federal credit union do look at your credit history for even basic cards.

6. Rest of the gang such as PNC or prepaid cards or Citizens, Citadel, Union or what have you. They are generally eager to snatch your business and would be happy to approve you as long as you are a new customer to them. Sun Trust is one such bank. Though they are well-known for their terrible customer service, which yours truly has experience in several occasions, they are overall flexible with approving accounts. But good luck getting any decent rewards or points with them on an ongoing basis.

Any other ideas that you have or sequence or bank that I have missed?