Applying for a credit card nowadays is as straightforward as entering your data into an online form and clicking “submit.” But getting approval for a credit card requires planning that ought to begin much earlier than you apply. If you keep the following 4 points in mind you will have a higher probability of getting your credit card application approved.
Know your credit worthiness
Your credit score is one of the most important factors for any credit company to get an approval for your application. Despite the fact that there may be some variation relying upon the bank you’re working with, scores are ordinarily grouped by lenders as :
300-629: Bad credit
630-689: Average credit
690-719: Good credit
720 and up: Excellent credit
Most rewards credit cards require great or healthy credit score. So if you have difficulty maintain a god credit score, it is recommended that you do not apply till the time you finances are back on track. You can do this by making installments on time, keeping your credits low on existing credit cards and staying away from new debt.
Decrease your debt
An entire 30% of your financial assessment is dictated by the amount you owe. High credits can be particularly harming. Generally if your credit use is below 30% on every credit card. So if, for instance, you have a credit card with limit of RS10,000, it’s recommended to keep your balances less than Rs 3,000 at all times.
You can bring down your credit use by making an arrangement to pay down a current balances as fast as you can.
Try not to apply for the first offer you see
If you don’t have great credit, you may think that its hard to get approved for a card with a huge join reward and a lucrative reward structure. As every credit card application ends up on your credit report, use mymoneykarma.com to find a card that fits your credit profile before applying. In case you’re still uncertain, call the card company and get some information about a particular card’s prerequisites.
Include all of your income in the application
Your credit score is a decent pointer of your general reliability, yet it doesn’t enlighten moneylenders regarding one critical thing: your pay. Credit card issuer require your salary level to figure your debt to-pay proportion, which decides your capacity to make payments. There are two approaches to lower this proportion: salary increase or debt reduction.
If you earn money outside your full time work, show that it on your application so that a precise debt to-pay proportion will be reflected. Be that as it may. On the other end if you furnish wrong information then that would work against you too.
Being denied for a credit card harms you both mentally and on your credit credit assessment. That is why it’s extremely to take control of your credit situation before you apply for your next card. Additionally, make a point to give exact data during the application procedure and be set up to put forth a defense for yourself in the occasion you aren’t endorsed promptly. We at mymoneykarma.com provide you with tools to figure out everything before you apply.