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How to Ensure Approval of Your Credit Card Application

Credit card options are aplenty nowadays. However, it is still difficult to get approved for certain cards. Since the inception of the new CARD Act of 2009, many card issuers have modified their programs and policies, with most of them enforcing stricter regulations. Do not worry, though, as there are still a number of ways by which you can ensure approval of your credit card application.

Know the Reasons Why Your Application May Have Been Rejected

If you have applied for a card and you have been denied, certain factors must have come into play. Among the common reasons why your application could have been rejected are the following:

  • You have bad credit score.
  • You don’t meet the income requirements.
  • You have delinquent accounts.
  • You have a “thin file” or you don’t have enough credit history.
  • You have applied for too many cards at the same time.
  • Out of the causes mentioned above, probably the most important is your credit score. With a bad credit rating, you will quickly be denied. The best way to “trick” the creditor into giving you a credit line is to apply for a card that is suitable for your present situation. If you don’t have credit yet, don’t apply for a card that requires excellent rating. This same principle applies if you have excellent score as well—don’t apply for a card that’s created for beginners or for those with bad credit. Although you might be approved, you will likely get less than what you deserve—low credit limit, high interest rates and, perhaps, no rewards.

    Apply for Cards Meant for People With Limited or No Credit History

    If you have a thin file, apply for the following cards:

  • Student card
  • Secured card
  • Gas card
  • Store card
  • The student card is for college students who don’t have enough credit history. A secured card is perfect for both students and adults who have no credit history yet or who are struggling with their current credit situation. The approval rate for a secured card is high; however, you will need to deposit an amount on your bank account first before you might be approved. The amount you have deposited will determine your credit limit. Gas and store cards provide easy approval as well. Unlike secured cards, though, no deposit is required. Such cards may have high interest rates and other fees, though.

    Get a Secured Card

    You may still be approved for a credit card even if you have bad credit. Some issuers have created cards particularly for people with bad credit. However, you may have limited choices when it comes to such cards. Likewise, you might find it a little daunting to find one that will really suit your needs. At first, you might find it really hard to get approval, since most issuers are likely to reject your application. Your best option then is to get a secured card. Secured cards can help you fix bad credit and build your credit score. Note, though, that most of these cards come with the following:

  • Application or sign up fees
  • Processing charges
  • Annual or monthly membership fees
  • Know Your Credit Score

    To get approved for a card you want, you should have at least a 780 FICO score. With this score, you get to pick the card that you wish to have. If you have a score of 700 to 779, you can qualify for most cards. Those with 650-699 scores are already viewed as average or fair. They typically have higher chances of getting rejected. People with scores of 500-649 have poor credit rating, posing a challenge in card applications.

    Get Approved With Confidence

    Having excellent credit rating is not a guarantee that you can be approved easily for a card. Even though you have excellent rating, there is still a chance that your application will get denied. To ensure approval of your credit card application, combine your good score with the following:

  • Favorable salary or annual income
  • Reasonable number of cards
  • Enough credit history
  • No recent charge-offs, late payments, and other undesirable items in credit report
  • Absence of debt
  • When all or most of these factors are present, you can be confident that your card application will get approved.

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