Everyone wants to have a credit card nowadays as it can be helpful in so many ways. Applying for a credit card is not really challenging, but getting approved for it can be. Filling the application form might seem to be a very easy and quick task to you, but that’s not it. Credit card issuers consider so many factors before approving your credit card application, such as your credit history, income, payment behavior, etc. So, you need to keep a lot of points in mind and follow each of the below-mentioned steps carefully to get approved for a credit card:
1. Be Aware of Your Credit Score
Your credit score is the most important factor that is considered by the card issuer before approving your credit card application. For those who don’t know what it is, a credit score is a three-digit number ranging between 300 and 900, which represents the creditworthiness of an individual. A credit score around 300 represents an individual with a bad credit history and that around 900 represents an individual with the best payment behavior.
You can check your credit score at any of the four major Credit Bureaus’ official websites and proceed with your application only if you are having a decent credit score (preferable above 700). If you have a bad credit history, you might need to improve it first by looking for ways to increase your credit score fast. Whereas, if you don’t have any credit history, you should build it first by applying for a secured credit card or taking loans.
2. Make Sure That Your Debt to Income Ratio is Low
If you are having debt that is far more than your income, you might seem to be a risky borrower to the card issuer and your application will most likely be rejected in such a case. So, before applying for a credit card, you must try to clear all your debt or at least ensure that it is not more than your income. Applying for a credit card when you are already stuck under an unmanageable debt is not a good idea.
3. Understand Your Spending Habits
Before applying for a credit card, it is essential to know where you spend the most. As there are different types of credit cards that can be beneficial in different categories, such as travel, shopping, cashback, and many more. If you are a frequent traveler, you should go with a travel credit card, if you are someone who loves online shopping, you should look for the credit cards that are most rewarding in that category. It is totally worthless to go for a travel credit card that doesn’t have many shopping benefits when you don’t have to travel very often, but you love shopping, and vice versa.
4. Compare Credit Cards
After understanding your needs and spending habits clearly, look for different credit cards that are best suited for your needs. It is not at all a good idea to just go for the first card you see. Compare them on the basis of different factors, including the annual fee, interest rate, other charges, benefits, etc, and then go for the one that is providing maximum benefits with the minimum charges. There is no sense in going for a credit card with a high annual fee when you don’t even use it that much. So, choose your credit card wisely to get the maximum benefit out of it.
5. Fill the Application Form Carefully
The credit card application form needs to be filled very carefully as a single mistake might become the reason for the rejection of your application. You must fill in all your sources of income if you are having multiple earning sources as the higher your income is, the higher are the chances of your credit card application being approved. Moreover, before uploading the required documents, make sure that all the details in your documents are clearly visible so that your application doesn’t get rejected just because of a blurred image.
In case your credit card application gets rejected and you find that the reason for credit card application rejection is not valid, you must try to contact the card issuer and request them to either explain a valid reason to you or approve your application if there is not really a reason for getting it rejected.
Getting approved for a credit card might be challenging, especially when you don’t have a very good credit score. But, keeping all the above points in mind, you can not only get approved for a credit card but also get the maximum benefit out of it. You should make sure to maintain or build a good credit score as this is something that plays a huge role in your entire credit journey. Achieving an excellent credit score can be very beneficial as it will help you get approved for a credit card or a loan in minutes.
If you have any doubts regarding the information given above, you are free to ask in the comment section below. Team Cardinsider would be more than happy to help you!