10 TIPS FOR GETTING APPROVED FOR A CREDIT CARD
Applying for a credit card can feel scary, just like taking an exam back in the school days, but good news, that’s why we are here. To guide you and to give you essential pieces of information about the whole process of applying for a credit card and to get approved.The first part of applying for a new credit card seems easy, but you’ll need to meet some minimum financial requirements to get approved for the better credit card offers.
Getting approved is never a guarantee; a successful credit card application starts with informing yourself about the whole process, knowing your credit scores, and choosing the right card.
You not only need to know how to apply, but you also need to be aware of what the issuers are looking for; depending on your credit, there’s a chance that you may not get approved for the first time, but you can learn a few tips for the future to get successfully approved.
Here are the best 10 tips for getting approved for your credit card
#1 Be careful for how many cards you apply
Be very careful with this step, don’t apply for too many cards at once. Why? Every time you apply for a new credit card, it knocks your credit score. If you apply for too many cards, lenders will not like it very much. So take your time and make sure which card is the best for you.
#2 Don’t be late with your bills
When you’re applying for a new credit card, lenders will look at your other cards’ credit utilization. ( the best ratio to maintain is 30% and 70% debt available credit)
#3 Understand terms and conditions
Every time you’re applying for something, you agree to the terms and conditions. This process is no different. Applying for your credit card requires this step too. Try to have a basic/ solid knowledge of the interest rates, fees, reward program details, and other information applicable to your credit card. This way, you will firm that contract without any doubts, and you will be sure that you’re choosing the right card for yourself.
#4 Have a positive credit history
Good credit history will help you get approved for a new card. Let’s say the better your credit score, the more chance it is that you’ll be approved. Be well informed; some issuers only approve applicants who have crystal clear credit score records. For example, if you have a bad credit score history with the same issuer where you want to have your new card, there are small chances that you will be approved for the new card.
#5 Apply at the right place
You may think it’s not important to apply for a new credit card, but applying at your bank or credit union will give you a higher chance of winning approval.
#6 Get a co-signer
There may be a chance that you can’t qualify for a credit card. In this situation, it’s good to have a co-signer who is old enough, have a secure income, and does not have a bad credit history. The co-signer has to meet the credit card’s qualifications for both of you to be approved. It can be one of your friends or a family member.
NOTE: The person that will be your co-signer and you too, have to be aware that they are taking a risk if you don’t pay a balance back, your co-signer will be responsible for it and will receive every credit damage from payments you’ve missed.
#7 Have a security deposit
This step is important for people who have bad credit and cannot get approved for a regular credit card. A secured credit card requires you to make a security deposit against your credit limit before you can be approved. This deposit can be 300$
#8 Know your needs
As they say, different types of credit cards suit different types of people. Take out of your time a little to do some research on what card do you need. If this is your first card, you might consider applying for a student credit card.
#9 Compare your options
Now that you know from what cards you are able to choose compare them! What do you need to reach? Let’s see:
- Interest-free periods
- Annual fees
- Reward programs
- Interest rates on purchases
- Balance transfer
- Additional cardholders (if they come with a fee)
- Extra benefits
- Complimentary insurances (purchase protection, travel insurance)
#10 Start good credit habits early
As we said before, having a healthy card history always puts you in a better position when applying for your credit card. Let us give you some tips for these habits:
- Stay below your credit limit.
- Review your statement for accuracy
- Check your credit reports.
- Apply only for the credit you need
- Pay more than the minimum.