How to apply for a credit card | how to apply and get Approved Credit card
One of the first things you’ll take into consideration before applying for a credit card is a simple understanding of your credit scored, debt and income and applying for the type of card suits your profile. How to apply for a credit card is the very question that troubles many.
Knowing how to apply for a credit will save you a lot especially getting your application approved. Understanding and taking into consideration the following points above will go a long way in helping you make the right decision. You must choose the right card that suits your income.
Applying for a credit card is very simple. It’s just entering the right information the issuer needs from you. Entering the right information needed from you is what gets your approval of the card you want. Once you enter the right information, go ahead and hit the ‘’ Summit’’. This exercise needs a proactive Planning that has to start long before you apply.
The key tips on how to apply for a credit card
Knowing your Credit Score
This is a very important factor in applying for a credit card. It’s a crucial part of what the card issuers consider before approving a credit card application. If you bother about how to apply for a credit card, then you have to know your credit score first.
A credit score is classified by the lenders as seen below:
300-629 Bad Credit
630-689 Average Credit
690-719 Good Credit
720- And above Excellent Credit
A good reward credit card needs either good or excellent credit. So, if you’re not having a good credit history, I think you shouldn’t apply yet, wait until you’ve put your fiancé in order. This means that your finance must be in to order. You can achieve this by:
- Making your Payments timely
- Keep your balances on the existing cards low
- Avoid new debt
Note: If you don’t have a good credit, you may not have an approval for your credit application.
Or as an alternative, you may consider good cards for people with bad credit. This will help get you closer to qualifying for a reward card over time. Ensure you use the card well to help rebuild your credit.
There a lot more credit scoring models and one of the most important is the FICO Score and VantageScore. The FICO scores are a product of Fair Isaac Corp. These scores are used mostly by lenders in their decision making. FICO has a major competitor known as VantageScore developed by three major credit bureau.
Reduce Your Debt
About 30% of your credit score is decided by the amount you owe. Having a high credit balanced can also be damaging. Your credit utilization ration which is your balance divided by your credit limit. This should be below 30% on each credit card. For example, if your credit limit is $10,000 it ’s advised you keep your balance below $3,000 at all given times.
However, you can lower your credit utilization via creating a plan to pay your existing balance as soon as possible. In addition, you’ll consider paying off your purchases once in a month or more than. This you do to keep your balance lower all through the month.
Do not apply for the First offer you are given
How to apply for a credit card is one question that people after asking don’t get ahead because of bad credit. You won’t have your card approved if you don’t have good credit. You can use any of the Nerd’s tool to find a card that befits our credit profile. In case you doubt any of the tools, call your card issuer to find out about any card requirements.
Putting in all your income in the application
Your credit score shows all our creditworthiness, though, it doesn’t tell lenders about your income. But the card issuers need your income strength to know your debt -to income- ratio. This will help them know your ability in regards to making payment. You can lower this ration in two ways; Increase income or decrease debt.
But if you make some dollars from your full-time job, include it on your application. When you do this, an accurate debt-to-income ratio reflects. So, don’t think of overstating your income. But if your issuer knows you gave false information while applying, they may charge you for fraud. This offense is punishable by $1 million fine or 30 years imprisonment.
Do not Give Up
Well in case you’ve done all in the right direction for application and yet denied, don’t just give up. The credit card issuers have some customer care lines that you can call for reconsiderations.
But before you call, you must have a plan. It’s your right to ask your card issuers questions why you’re denied credit card. This is because your question on how to apply for a credit card won’t be complete unless you have the card.
However, you have the right to check your free credit report at AnnualCreditReport.com to know any challenges on your card. Then, put your argument why you want the card and the reasons you’ll take fiscal responsibility. Be polite in your discussions with the customer care agents.
You can get easy approval for a secured credit card that uses a cash deposit you make upon approval to secure your credit.
Most secured cards offer cash rewards, while some offer flexible deposit amounts. Moreso, you stand a chance of upgrading to an unsecured card.
The Things you’ll need in your new Credit card
- Good and great rewards
- To save money on interest
- To Establish and build your credit score
It really hurts is credit card issuers denies you a credit card. Therefore, it’s important you take these deliberate steps to get yourself and approved credit card. Also, try to provide the right information when applying for a credit. I believe that with this information in this article, how to apply for a credit won’t be a serious issue to you any longer. I wish you good luck as you make the bold step to apply for a credit card.
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