Not everyone who applies for a credit card may get approved. Many undergo rejections. Adding injury to the insult, the credit score could plummet as well.
Getting approved for a credit card, however, is not a difficult task; that is, if you are able to meet all the necessary requirements. As such, it is imperative that you take some time to examine the prerequisites of the plastic you are after before you fill out and submit an application form. Doing so can help augment your chances of getting approved for a credit card.
To have higher chances of getting the credit card of your choice, it may be better to familiarize yourself with the following factors first:
Your credit score is one of the many deciding factors used by card issuers when approving or rejecting your application. Your score depends on several things, one of which is how good (or bad) you are as a cardholder. Knowing your score is easy. You only need to check with Fair Isaac Corporation (FICO), an important financial group that manages and compiles data affecting credit scores. Usually, your rating is based on your previous records or credit reports, which come from the three major credit bureaus. A free copy of the report can be obtained on an annual basis.
Elements That Augment Your Chances of Getting Approved for a Credit Card
Creditors often take a look at the credit reports of applicants. They use the entries on the report to determine whether or not you would be worthy of a new credit line or not. If the following are found in your credit file, you have a high chance of getting approved for a card:
- No recent or very few consumer credit inquiries
- Absence of overdue credit accounts
- No writs and court judgments
- No recent collections
- Good relationship with current creditor
Credit Card Application Requirements
All cards come with the following requirements:
- Age requirement – You should be at least 21 years old to qualify. If you are below 21 but at least 18 years old, you might get a card if you have a co-signer.
- Income – You need an income of your own, which means that you can no longer use your parents’ or even your spouse’s. It is important that your credit limit does not exceed your monthly income.
- Address – You should be a citizen of the country where you are applying for the card.
- Fees – You will need to pay the costs of the card once you get approved for it. There may be application and processing fees as well as the annual fee.
Too Much Credit is a No-No
Even if you have excellent credit, you can still get turned down for a new card if you already have dozens in your wallet. Lenders are often wary of giving new cards to those who seem to be collecting credit cards. Having more than three cards can make them question your ability to repay your balances. For instance, if two of your cards have a credit limit of $10,000, your lender may not be too happy to accept your application. Even if you don’t use the cards, banks are not willing to take the risk of you maxing out on your cards.
These factors are only some of the many things used by creditors to decide whether to approve your application or not. Making sure that you are able to meet all these factors and other known requirements can really help in guaranteeing the approval of your application.
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