If you are an experienced credit card holder or if you are applying for a credit card for the first time, you should carefully consider what credit card you should request and how you can increase your chances of getting approval to use a credit card. In general, the average approval rate for credit card applicants was 39.1%. Your chances of getting approval are through all credit scores.
Each of us has a different credit score. Credit cards do not occur in the same way. They have a different purpose. There are reward cards, travel cards, balance transfer cards and so on. All this has different needs for the clients and the attractiveness of the credit files. The credit file is a summary of a person’s credit history. It is used by potential borrowers, such as credit card companies, to determine the degree of credit. Owners and utilities are also using the word, and are trying to determine their ability to pay.
Credit files also help determine your chances of obtaining credit card approval.
Here are 5 tips to keep in mind when applying for a credit card.
Take it slowly.
Study your credit history.
Reduce your debt.
Get your credit score
Indicate all your income.
Choose a suitable card
Take it slowly. Do not send all the credit card applications you can find. This will reduce the chances of your credit card being approved.
Number of accounts
A contemptuous signal.
The average age of opening your account
Number of hard credit surveys
Using credit cards Make sure that your credit history is free of errors. When a credit card company reviews your credit history, you want everything to be absolutely accurate. Look for any mortgage or bankruptcy, as well as any trial or collection account. If you have another credit card, your balance should not exceed 30% of your credit limit.
If there is an error in your credit history, file a complaint with the company immediately.
Reduce your debt. When you apply for a credit card, the debt in your credit history should be as small as possible to increase your chances of being approved. It is important to pay off all the long-term debt as much as possible.
You can also minimize the occurrence of short-term debt by paying your balance before the billing form.
Get your credit score Your credit score reflects your credit history. After viewing your credit history, you can buy your FICO credit score. FICO is the industry standard for credit rating. The Consumer Financial Protection Office of the United States (Consumer) has published a study on the possibilities of credit cards based on the credit scores that are approved. According to the study, if your FICO score is higher than 720 points, you have an 85.5% chance of getting approval. If your FICO score is between 660-719, you have a 58.1% chance of getting recognition.
If your secondary FICO score is divided by 659 points or less, you only have a 17.1% chance of getting approval.
These approved opportunities are not guaranteed to be approved, but they are the possibility of approval.
Indicate all your income. Most credit card companies require annual net income when requesting credit cards. Annual income and credit scores are equally important when requesting a credit card. Revenue requirements are important for credit card companies because they show that you have the ability to pay your monthly debt. If you have other sources of income, you do not have to list only your net salary or net hourly wage.
It can also include investment income, spousal support, royalty income and any other income you can receive so that, obviously, you can pay off your debt.
You may be asked to show your payroll and other supporting documents to prove your income requirements.
Choose a suitable card Determine your goal to apply for a credit card and make sure it suits your credit file. For example, if you are a part-time minimum wage student who is in college, you may not be able to get approval for a travel card. Read all the credit card application materials to make sure your credit score meets your requirements and your income level.
The more your personal information meets the requirements of your credit card, the more likely you are to obtain approval. Tip: If you are not authorized to use a credit card, do not give out. You can increase your chances of getting credit card approval by trying to improve your credit score, build your credit history and your annual net income. Be sure to choose the right type of credit card.