Are you waiting for your desired credit card to be approved? Great!
Ever wondered what the odds of your approval are, though? Whether you are a seasoned credit card user or you're just starting out, you need to consider the 'which card' and 'how to get it approved' aspects in some detail.
After all, nobody likes feeling rejected. Applying for a credit card without enough assessment may result in a hard inquiry, which will surely knock off some points from your credit score. What more? A dip in your credit score can put an end to your credit card dreams all at once. Let’s hope the importance of understanding your chances beforehand is not lost on you now.
Here are eight tips that you should consider when applying for a credit card. Let’s see if you’re up for it.
Going slow can get things done. Don't just jump the gun and apply for every credit card you come across. Done within a short period, especially, it can land you in trouble. Hard inquiries will pile on and dent your credit score, thereby hampering your chances of credit card approval.
First and foremost, carefully study your credit history to calculate your odds of approval. Your credit history includes information about your debt, such as credit cards, debit cards, loans, etc. and it gives your issuer a clear picture. Moreover, they will also look at factors like late payments, derogatory remarks, hard inquiries, credit utilization rate, etc. to determine your worth. So, before you apply for one, make sure that you have an error-free credit history.
Credit scores are one of the most critical factors in the credit world. It can essentially make or break the deal for you. Although every credit card issuer has their way of determining approvals, credit scores are typically classified as:
300 - 629 - Bad credit
630 - 689 - Average credit
690 - 719 - Good credit
720 and up - Excellent credit
You are more likely to get the best credit card with low interest and better perks if your credit score is 720 or above. You must check your credit score regularly to keep up in the credit game. Some financial websites, including mymoneykarma, let you check your credit score for free.
So, if you've struggled to keep up in the credit score race, you might want to wait until your credit improves.
Improving your credit score is the key to getting hold of better credit cards. High credit card balances or long-term debt can prove fatal for your credit score. Try repaying your debt as soon as possible. Keeping your credit utilization rate under 30% can help improve your chances too. Also, try repaying the monthly bill to maintain a lower credit balance. To sum up, tweak your credit habits to get better opportunities.
Just don't apply for the first credit card offer that you see. A number of such decisions taken together can destroy your credit score. Before you apply, compare your credit score along with your chances of being approved for the card.
But if there's no luck in getting one, try getting a secured credit card, to ‘secure’ your line of credit.
Although credit card issuer decides your creditworthiness based on your credit score, it doesn’t reflect your income. Knowledge about your income will help the card issuer to calculate your debt-to-income ratio. Laying down your income eases the process, given there is honest clarity. Never overstate your income, as you could be charged and convicted if your issuer finds out.
Don't lose hope if your application is denied. You can always call your issuer and ask for reconsideration. Be courteous when convincing argument and.
Still, no luck? Waiting for some months in between credit card applications can raise your chances of getting an approval.
Rejection, on any day, hurts - both emotionally and in terms of its adverse effect on your credit score. First and foremost, decide your goal in applying for a credit card that fits your credit profile. You can raise your approval odds for a credit card by boosting your credit score and building up a strong credit history.
Check your credit score regularly, as it's crucial to plan and assess to put your best foot forward before you apply again.