The small piece of plastic in your wallet has gathered up a bad reputation of late. But the truth is credit cards can be a great financial tool for daily purchases as long as they are used responsibly. They are also an incredible resource for purchasing big-ticket items like plane tickets, TV, or jewelry as you do not always have that much funds immediately at your disposal.
Given the unemployment at unprecedented levels and the prevalent economic fallout, banks are allowing customers defer payments on credit cards. So it doesn’t come as a surprise that lenders are also tightening up approval criteria for borrowers. In fact, some banks are even reducing credit limits as a result of the impacts of COVID-19.
Needless to say, the chances of approval for a credit card are now different than they were a short time ago. If you’re someone who is considering to apply for a credit card, you are probably wondering if it is even feasible to get approval right now. And if it is, then how to boost your approval odds.
How to Get Approved for Credit Card With Easy Steps
The good news is it is possible to get approved for a credit card as long as you are meeting major lenders’ tightened requirements for approval. And we are here to help boost your approval chances!
Given the current uncertain economic conditions, credit card issuers are trying to lower their own risk by preferring clients with higher credit scores. Such card users are less likely to default on their credit card payments. So by tightening credit score requirements, they substantially reduce the risk of new customers defaulting or missing payments.
The best way to improve your credit score is by making your payments on time each month. If you feel that you have a hard time managing deadlines, you can automate your payments from your bank account. Apart from that, you can also set up alerts through your bank so that you know beforehand when a due date is approaching.
Another tip is to maintain low balances on your other cards as well to help your score. This is because most lenders prefer your credit utilization number to be at 30% or lower.
Apply for a Secured Card
The better part of your efforts to boost your chances of approval should be toward building credit. And one way to do that is through secured credit cards. All you have to do is put down a certain amount of money upfront and you can spend up to that amount on the card.
Secured credit cards are like cards that are for people with bad credit. They help you to build your credit over time.
Consider Different Cards
While you do need to have a good credit score to get approval for a credit card, not all credit cards require good to excellent credit. In fact, there are some cards that are targeted toward users who are still building their credit.
Generally, cash back and travel rewards cards are the ones that require users to have good to excellent credit in normal circumstances, and more during the pandemic situation.
So if you are someone who is dealing with bad credit, you can apply for cards that are for bad credit. Not only will it help you to improve your credit over time so you can qualify for better cards but they will also help you meet you financial needs meanwhile.
Include all Sources of Income
A very common mistake that most people make when applying for a credit card is understating their income or not including all qualifying sources. The main reason to include all streams of income is for ensuring that even non-working spouses and domestic partners can also have equal access to credit. Apart from including other sources of income, you must also mention alimony, disability benefits, child support, and disbursement of retirement savings on your application.
Follow up When Rejected
Every time a credit card issuer rejects your application, the law requires them to let you know the reason. The reasons can vary, usually ranging between having high balances, a lot of recent inquiries, too many accounts, not enough income or bad credit.
Sometimes, there could be also more trivial reasons like not verifying your identity properly, a typo, unrecognized address or any other error. The primary reason to follow up when rejected is that some of these problems can be immediately addressed. This will allow you to do anything that’s needed to get approval.
Call for Reconsideration
Another notable thing you can do to boost your chances of approval is to not give up. You can always get back to your bank and ask for a representative to manually reconsider your application.
But make sure top to pay down your existing balances, especially with the accounts that you have from the same bank before asking for a reconsideration. In some cases, the representative immediately approves the application while at other times, you might have to give a reason for why you are asking for a reconsideration.
We hope you’d find this blog post helping to Get Approved for Credit Card. A credit card can be an important financial tool to both build credit and make life convenient. But getting approval for a credit card can be a bit tricky, especially if you don’t have a long credit history or your credit score is still recovering from a past mistake.
So first and foremost be patient when building credit as it will take some time for your efforts to show in your credit score. Meanwhile apply for a secured credit card or consider different cards while practicing good credit habits.
If you are looking for a smart tool to keep track of your loan payments and other expenses, download the Doctor Money app today. With all planning in place, you are all set to take valuable advantages of your new credit card.