A credit card is crucial and one of the easiest ways to develop a strong credit history which will last for a lifetime. When you apply for a credit card, the approval isn’t as easy as it sounds because there are various factors to be considered.
Here are 13 tips to improve the chances of your credit card approval.
#1 Know Your Requirements
The need for credit cards is different for different people. Before you apply for a credit card spend more time searching for what you want, needs, and affordability.
If you are a student applying card for the first time, you can apply for a student credit card.
Learn more about how to choose the best credit card, its process and needs to prevent regretting later.
#2 Learn Benefits and Check Reviews
After learning the required type of credit card you want, you should start comparing your credit card options.
Cash advances, credit card reviews, and reward programs are to be majorly considered. You should compare to understand and ensure the benefits associated with the card.
#3 Check the Eligibility Criteria
To apply for a credit card and get approval, you need to meet the eligibility criteria.
It is crucial to meet the eligibility criteria as the rejection of your application will affect the credit score.
Make sure you have met the requirements with age, residential status, and good credit history before applying for a credit card.
#4 Check Your Credit Score
For assessing the eligibility for the card, banks use the standard credit rating system.
The lender will examine your credit history, current credit lines, and repayment habits to ensure you borrow a safe amount of money. You can access and request your credit score copy for free.
#5 Increase Your Credit Rating
You should never apply for a credit card with bad credits as it will highly affect your credit score.
By clearing the debts and loans on time you can improve the credit score.
In case you find any mistake in your credit report, you can get that error corrected with the credit bureaus.
#6 Apply for a Card that Fits Your Credit Rating
Before you apply for a credit card you should know to choose the right type of credit card that suits your needs.
It is always good to apply for a card that matches your current score. You can find the credit rating by looking into your credit history.
#7 Grow Credit Early
Good credit history will improve your chance of approval. You should begin growing credit early.
While closing other cards (if any), you should be careful, specifically if you had them for a longer time.
Opening accounts with good standing, will improve your credit score.
#8 Consider Secured Credit Card to Grow Credit History
For building a strong credit history, you need to find a secured credit card. A secured card will enable you to put down your tied cash deposit.
People with bad credit or no credit can dramatically improve their credit score with secured cards and later get back your deposit by upgrading to an unsecured credit card.
#9 Reduce Your Credit Use Ratio
When you apply for a new credit card, make sure you pay off the existing balance (if any). 30% or less is considered a healthy ratio.
So, you should maintain a ratio of 30% debt to 70% of credit balance. With a low debt utilization ratio, you hold a greater chance for your applied credit card approval.
#10 Open a Credit Card with Your Existing Bank
While applying for a credit card, you should choose to apply with your existing bank account as it will help in boosting your application process.
Having an account with transactions proves that you have a regular income stream with a paying job.
This will enhance your credit card application process as the banks already have the required details for the credit card application.
#11 Never Apply for Multiple Cards at Once
If your first application isn’t getting approved in first the attempt, apply for the next card after some time as the overlapping of applications result awful.
Applying for a credit card at once or during the same period will display your credit to the lender of holding a lot of debt no matter, it’s true or false! This creates a problem in the approval of your credit card application.
#12 Find a Co-signer
When you apply for a credit card, if you have bad credit or no credit, you should consider getting a co-signer to improve your chances for approval.
This means, that a co-signer you are hiring will be responsible for the debts that you can’t pay! So, make sure you have someone with good credit.
#13 Be Careful with the Details
You have got to submit a lot of information when you apply for credit card.
Details include residential addresses, contact numbers, previous and current employment, referee details, salary, monthly expenses, and outstanding debts.
You should fill all the information correctly during the application as the wrong detail may delay or deny your application.
These are the important tips to be followed for the application and approval of your credit card. Make sure you prevent committing mistakes as they may decline your credit card application. Feel free to share your views in the comment section.
