How To Get Approved For A Credit Card
Applying for a credit card seems fairly straightforward. Fill out an application, cross your fingers, and hope for the best.
But there’s a better, smarter way, of getting approved for the credit card you want.
Credit card companies have certain criteria they look for when determining whether to approve a consumer for a credit card.
So, without further adieu, here are the steps to take to make yourself more attractive to credit card companies and not only improve your chances of getting approved for a credit card but get approved for a higher credit limit.
1. Pay your bills on time for at least 6 months straight.
According to the Fair Isaac Corporation, the last 6 months’ payment history impacts your credit score more than anything else.
Make sure that your payment history reflects on-time payments within this range and shows that your finances are in order.
2. Limit your inquiries.
An inquiry appears on your credit report every time you apply for credit.
Applying for too much credit at once makes you look desperate for credit and in possible financial trouble.
Limiting yourself to one credit application every 6 months will improve your chances of getting approved for a credit card and improve your overall credit scores.
3. Pay down your credit cards.
If you already have credit cards, make sure that you pay them down to a utilization rate of 20% or less.
This means that if your credit limit is $1,000, your balance should be $200 or less.
The reason for this is simple.
Maxing out your credit cards makes you look like you’re living off the cards and don’t have enough cash at the moment.
Keeping a low utilization rate will make you look like you’re simply using the credit cards for convenience.
4. Be Realistic
If you know that your credit isn’t in tip-top form, don’t apply for the most difficult to get credit cards with miles and bonuses.
Set your sights a bit lower and a no-frills credit card like the Capital One classic card.
CreditCards.com has a great tool to help you determine which credit cards you may get approved for.
5. The Application
There are certain things that credit card companies look for on a credit card application.
Let’s go over a few common questions.
Are you married or single?
Although this question looks trivial, it is a great way of determining risk.
Married people project more stability than single people.
Do you Own or Rent?
Consumers that rent are more likely to move to a new location over the next 12 months than a consumer who owns a home.
And moving, as we all know, is a large expense.
This is another question looking to gauge your stability.
Do you have a Checking account, Savings account, or Both?
Consumers who do not have checking accounts are either irresponsible or have something to hide, in the eyes of the credit card company.
Having a savings account means that you are responsible enough to plan for the future and possibly carry a reserve of money in the bank for a rainy day.
Having both a checking and savings account means that you are a responsible and stable individual.
What is your Total Household income?
Simple enough question, but many consumers actually get this question wrong.
The credit card company isn’t asking you what your income is, they want to know what is the total income of everyone that lives in your household.
Accidentally putting down your income, instead of your household income (which is undoubtedly higher), may decrease your chances of getting approved for a credit card.
So make sure to answer this question correctly
Would you be interested in blank checks to use for cash advances?
Most cash advances on credit cards are charged the highest interest rates possible.
Consumers that withdraw cash from their credit cards are either in financial trouble or fiscally irresponsible, credit card companies tend to stay away from such individuals.
A credit card company wants to lend money to responsible consumers that will pay the money back.
As you see, there is much more to getting a credit card than luck.
Credit card companies look for a specific individual to lend money to.
By following the advice outlined in this article, you will begin to look more attractive to a credit card company and increase your chances of getting approved for a credit card.
If you’ve followed all these steps and still can’t get a credit card, you may need some professional intervention from a company like CreditFirm.net to help you improve your credit and get approved for a credit card.