Be it a seasoned credit cardholder or you are trying to apply for your first credit card. Decide which type of card you need to apply for and how to manage your odds to get approved for a credit card. Apparently, 39.1% of credit card applicants are approved across the board. There are different purposes cards like rewards cards, travel cards, balance transfer cards, etc, for every credit card, not everyone will have the same type of card. And all our odds basically come across the credit scores and every individual as different credit scores.
Every credit card lender looks over your credit card worthiness before approving you a credit card, so make sure you keep your credit history safe and sound. And to keep your credit history good, pay your bills in time, minimize your debts, avail your credit score, and select an appropriate card. However, what does it actually takes to be approved for a credit card? In addition to this, there are things that can help you to increase your approval odds. Does the beginner aim to build a credit history? here are some of the lifesaving hack that helps you get approved for a credit card.
Know your Credit Score Range, Prior to applying for a credit card
Credit Card Companies take into consideration many factors before sanctioning you the card, some of them are:
- Credit Score
- Income
- Monthly payments (mortgages/rent)
These factors carry the major weight for the card approval. Checking credit scores is one of the major ways to spot the odd for approval of the cards, and make sure whether your credit the score is up to the range, usually, 90% of the lenders consider 300 to 850 score range.
This article will help you understand how credit card scores affect approval. If the credit score is 750 and above, then you will be eligible to avail of almost any type of card available in the market. Remember a credit score isn't the only thing that will approve your card, there other factors that reject your card approval like high credit utilization ration, late payments but with higher credit scores you will have maximum chances of approval apart from these factors with terms apply. On the other hand, credit score range below 580 can get approval for secured cards. The secured credit card will be available when you do a down payment or cash deposit into the account, if you fail to repay your loan, the credit card company will use your deposited cash from the account.
Credit Card Approval Rates by Score Range
- 84% Approval rate for Super prime Credit Score Range
- 65% Approval rate for Prime Score Range
- 43% Approval Rate for Near-Prime Score Range
- 19% Approval Rate for Sub-Prime Score Range
- 16% for No Credit Score Range
It’s simple as well as tough to get approved for the credit card, the simplest things to do is to get a good credit history, so focus on that and improve your odds to get approved.
Improve your odds and approval for a credit card
Check Your Credit Score
- Check your credit report, you can avail for free from some companies.
- Your credit history or report contains details about your payment histories, debt clearance, income, etc.
- Check and resolve errors in your credit history report.
- Your credit report is the main factor that helps you improve your odds.
Keep Healthy Credit Score Habits
- Manage Payment History and Credit utilization smartly, as these two factors affect the credit score so keep it good.
- Never miss your payments to be done, do it in time to keep your credit score stable.
- Maintain stable utilization of credit does not go beyond the limit in the given time.
Compare different card offers before applying
Different companies have different offers, go, and compare and try to figure out which offer is suitable for your credit profile and apply for that type of card.
If you are denied, try for other options to build your credit
- Try for other options if you are denied, never lose hope there are so many ways to get still approved.
- Get secured cards or any loan that helps you build your credit. These loan payments build your credit report with timely payments.
Good Things need patience and time, similarly, to get approval for the credit card you need patience. Rectify your odds to get approved, like build your credit score and history figure out the mistakes from the past and solve it by paying bills on time and practice good credit habits.