The actual process of applying for a credit card is very simple. So easy it can be done in less than 10 minutes. Pretty much all that it requires is that you provide you basic information and sending in the application with one click. However, actually getting approved for a credit card requires a little more thought and care than simply hitting “submit.” This is How to Apply for a Credit Card So You’ll Get Approved
Check Your Credit Score
Credit scores are arguably the most crucial thing when it comes to credit card applications. They are simply a measure of the applicant’s creditworthiness. Before applying for a credit card, it is crucial that you first check your score. This will give you a clear picture of how likely your application is to be approved.
To access your credit score, you can submit a request from any of the major credit reporting agencies. These are Experian®, Equifax®, and Transunion®.
Improve Your Credit Score
If your credit score is low, your application is likely to be rejected. Fortunately, there are some measures you can take improve your credit rating. They include:
- Pay off debts and keep credit card balances low
- Pay bills on time
- Do not close unused credit cards
- Only apply for credit cards when needed
Don’t Apply for the First Credit Card Offer You Find
Caution should always be exercised when applying for a credit card. Only apply when you’re confident your application will be successful. This is because every application temporarily reduces your credit score. As such, you should first use online pre-qualifying tools to see if you can qualify. Pre-qualifying tools do not affect your credit score.
Make Sure to Include Your Full Income in the Application
A high credit score is the first step of qualifying for a credit card. However, even if you are not credit risk, card companies must also determine whether you can afford to service a credit card and how much credit they can extend to you.
This is done by assessing your income and current debts to find out your income-to-debt ratio. Listing all your incomes will give you a better income-to-debt ratio and increase the chances of your application being approved. You are also allowed to include your partner’s income on your credit card application.
There are a lot of factors that determine whether your credit card application is approved or not. Fortunately, they’re all in your control. By being more financially conscious, you can avoid most of the pitfalls that lead to rejection.
At times, you may be confident of your chances of being approved for a credit card only for your application to be rejected. When this happens, get in touch with the card company and find out why your application was rejected. This will information will give you a better chance of being approved next time.