Everywhere you turn, people are complaining about debt.
Don’t listen to the naysayers. Having access to responsible amounts of credit can mean affording a holiday, repairing your car or building up your credit history for a mortgage application.
But applying for a credit card can be a confusing process, especially if you’ve never had a card before. Do you know what you need to do to get approval?
If you don’t, we’re here to help. Let’s run through how to get approved for a credit card with ease.
Check Your Credit Score
When you apply for a credit card, the card provider will check your credit history to see if you’re a risk.
Your credit score plays a part in that. It’s a score that gives the credit card company an easy benchmark to judge whether they should offer you a card. It can also allow them to evaluate what interest rate to offer.
The higher the score, the more likely you’ll be approved. You can find out your score by checking with major financial bureaus like Experian.
Is your credit score a little poor? Don’t sweat it. Find out the best credit cards for consumers with bad credit scores from our list.
Lower Your Overall Debt and Pay Your Bills on Time
If you want to ensure credit approval, you should look at your current budget, including any existing debt you currently hold.
Your income to debt ratio plays another big part in whether you get approved for a credit card. Excessive debt utilization can be a warning sign for other lenders.
If you have an existing credit card, try to lower the balance before you apply for another. You should also make sure you pay your credit bills on time without fail and try to pay more than any minimum amounts.
Missed bill payments, or only paying the minimum, is another sign for lenders that you might be in financial distress (and therefore a risk to lend to).
Check for the Best Offers
When you’re out buying food or clothing, do you buy the first things you see? It’s unlikely. So why should your credit applications be any different?
Be a savvy credit hunter and look online for the best credit card deals available for your credit score. Some credit card companies offer cards that give you cash back or rewards for purchases. Some offer better interest rates.
Think about how you want to use your card and look for the best card that matches that profile. If you want a card that can help you reduce your interest payments, a 0% interest transfer card might be a better option.
Don’t Apply for Too Much Credit at Once
Want to know how to get approved for credit cards without damaging your credit history?
Only apply for one card, once. Too many credit applications in a short period of time can torpedo your chances.
Credit applications are recorded on your credit report. They stay on your report for two years and can be seen by other credit card companies when you make an application.
Apply too often, and it’s a sign of financial desperation. You’re not likely to be approved because, as far as a credit card company is concerned, you’re a bigger risk.
How to Get Approved for a Credit Card the Right Way
With an average rejection rate of 20% for credit card applications last year, it’s more important than ever to increase your credit card approval odds with these suggestions.
Knowing (and improving) your score can help you bypass an automatic rejection from a credit card company. Keep your existing debt low, and be sure never to miss a payment.
Don’t be tempted to apply for too much credit at once, either. You’ll damage your history and lower your score, so always look for the best offer before you apply.
Now you know how to get approved for a credit card, the only thing left is to apply for one! Check out our list of the best credit cards for consumers like you.