Applying for a credit card has become easier than ever before. All you need to do is to fill out an online form and click on the “submit” button. However, you need to do some proactive planning in order to get your credit card application approved.
Tips to make your credit card approval easier have been shared below:
- Know your credit score
Your application for a credit card tends to get approved as per the decision of the card issuer. He considers the credit score to be one of the leading factors in deciding whether you’re eligible or not. Lenders are known to classify the scores based on the rules laid down by your preferred bank in spite of certain variations. You’ll need to maintain excellent credit score for achieving most reward cards. For those of you that have failed to maintain a good credit history, it’s in your best interest to postpone applying for a credit card until you’re able to manage your finances efficiently.
- Lower your debt
The amount that you owe tends to decide about 30% of your credit score. Your finances are likely to get damaged if you possess high credit card balances. With every credit card, you must maintain a credit utilization ration worth 30%; you may arrive at your credit utilization ration by dividing your card balance by the limit. Under all circumstances, you’ll need to maintain a balance lower than $3,000 if you have a credit limit worth $10,000. You may restrict your credit utilization with the help of a plan that enables you to meet your current balance as soon as possible. In addition, you may repay your purchases by a few times every month so as to lower your balance for the entire month.
- Avoid the initial offer
Getting your credit card approved with great rewards and bonuses seems tough when you don’t have a good credit.
Your credit report holds a record for each credit card application. Prior to applying you must identify cards that match your credit profile. You must compare credit card offers from a few eminent lenders and see things for yourself. If required, you may go through this extensive review of the American Express essential credit card to gain more insight into the real benefits of credit cards. Study the requirements of your most preferred cards and clarify your doubts with the lender if you aren’t sure of the advantages.
- Show your income details in the application
Your overall creditworthiness is reflected by your credit score. However, your income isn’t shared with the lenders. Your debt-to-income ratio can only be calculated after taking your income into account. Once the lenders are aware of your income, they can identify your ability to repay a debt.
- Get persistent
You must stick to the basics when your application gets rejected even after following the relevant steps. Your case may be pleaded once you call up the reconsideration lines shared by your credit card issuers. However, before placing a call, you must create a concrete plan. You must inquire about the possible reasons for rejection of your application. Make sure you check out a free copy of your credit report just to know if your credit history projects any blemishes.
The Final Word
Besides yielding a negative impact on your credit score, a rejected credit card application leaves a psychological impact on your mind. That’s one reason, why it’s important for you to achieve a vivid account of your entire credit situation prior to applying for a new card or comparing a few identical card offers. Your credit information helps you in identifying the best credit card for your requirements.