How to increase chances for credit card approval?

With the rising inflation many Americans are striving hard to pay their bills on time and at the same time credit card issuers are more stringent in approving the new credit cards. So, it’s relatively harder to get credit card approval. If you are seeking advice to increase chances for credit card approval, you have to take in consideration multiple factors.

Once you apply for the credit card that requires hard inquiry it will impact your credit score . Its always a good option to go for the credit cards that offer pre-approval. So that if you face rejection in preapproval, the credit score will remain stay stable. On a brighter note , there are certain tips that can increase chances for credit card approval. Let’s dig deeper into the ways to improve credit card approval odds.

How to increase chances for credit card approval? – Key Takeaways

Although there are multiple ways to increase chances for credit card approval, but there is not a solo thing you can do to increase credit card approval chances

• You cannot fully control the authoritative decision for the bank to approve your credit card but you do improve your credit score and other factors to increase chances for credit card approval
• If you are determined to improve your credit score then you have a higher chance to improve credit card approval odds
• If you are new to credit and want to rebuild the score, a secured card is the viable option. These cards are regarded as the stepping stone to build your credit score with the passage of time

How to Improve Credit Card Approval Odds?

Pay the Bills Timely

The payment history is regarded as one of the crucial factors in determining your Credit card approval chances . As the credit card issuers are likely to see your track record on the previous payment before issuing you a new credit so its important to keep an eye on the credit score. Make your monthly payments on time so that you don’t have to worry about the constant decline of credit score. Even if you don’t pay bill in full, the credit score will drop potentially to a lesser value .Pay at least the bare minimum so that your account will remain in the good standing.

 There are multiple monthly bill payments that include car loan , grocery items , cell phone , rent payments and much more. Just make sure that you make timely payments and report to all the three credit bureaus. Some of the credit card issuers charge you penalty APR on the late bill submissions while others will make it an obligation to pay the minimum amount as specified in the application.

Having a good credit score and you start missing the payments will hurt your credit score by a significant amount. If you currently have a FICO score that is 790 and you missed the payment by 90 days then the credit score will drop by 100 points in total. Whereas if you have fair credit score like 610 then the credit score will drop by 27-50 points.

Have a solid proof to show for the cash flow

Lenders are giving consideration to the income of the applicants of the credit card issuer. With a good debt-to-income ratio you will likely increase chances for credit card approval. While the documentation system for income proof varies from lender to lender, it is important to get the verification done to increase credit card approval chances.

 Some of the credit card issuers will also ask for copies of bills as solid proof of address and social security cards for the purpose of identity. In most of the cases, you just have to show verified income rather than the high disposable income.

Work on improving your credit score

The credit card issuers usually give high credit limits to all those individuals who pose a lower risk to default on their payments. You can increase chances for credit card approval with higher limits by consistently working on your credit score. With higher credit score the risk of late payments is lesser and the lender will automatically agree for better terms and conditions for the credit card.

 If you are the one who is constantly keeping tabs on the credit card try t make on time payments, keep credit utilization lower than 30% and try to keep the old credit cards for a great credit history.

10 Ways to Build and Improve Your Credit Score

 If you want to unlock the possibilities to increase the chances of getting approved for the credit card, try to improve your credit score. The blog lists the 10 simple and viable approaches to build the credit score with the passage of time. Do follow them to leverage the best cards with higher credit limits.

Give consideration to different credit cards

 If you currently don’t have a good financial standing , fret not as there are various cards that are available for the consumers with limited to fair credit score. Increase credit card approval chances by selecting the cards that are according to your credit score.

 So for instance you have fair credit score of 620 and you have applied for travel cards with premium perks then there are higher chances for the rejection. In this case increase chances for credit card approval by checking the pre-approval credit cards Some credit cards are designed to build and improve the credit score , so opt for those if you have a bad credit score.

 Apply for Secured Cards

 With a bad credit score, secured cards are reliable option. These cards have lenient terms and condition and requires security deposit for the secured card which increase chances for credit card approval. Once the card is approved, you can continue to build the credit score like all other cards as the payment is reported to all the three credit bureaus. Although the credit limit is lower but its good to take the first step in the world of credit cards. With higher credit card approval chances, these are the top picks for the secured card.

•  Capital One Platinum Secured Credit Card – Best low-deposit secured card
• Platinum Secured Mastercard® from First Tech Federal Credit Union – Great pick for high limit
• Citi® Secured Mastercard® – Best low interest secured card

Best Second Chance Credit Cards with No Security Deposit

 If you had a financial setback in the past and will not be able to qualify for the traditional unsecured credit cards, then fret not . There are numerous options in the list of second chance credit cards with no security deposit to get you back on track financially.

Petal 2® “Cash Back, No Fees” Visa Credit Card is one of the best credit cards that have increase chances for credit card approval with its minimal credit score requirement . Although the perks are lesser but once you rebuild your credit score you can jump to credit cards with higher limits.

Ask for reconsideration 

 Denial of the credit card is an alarming situation and might demotivate you . But to your rescue many of the credit card issuer have reconsideration line that can help you in this scenario.

A reconsideration line is the phone number that is used to request for the information on the denial reasons of the credit card. The important reasons for the turn down of your credit application includes the following :

•  The credit issuer would be happy to grant you a new credit line as you have multiple credit accounts lined up with debt
•  There are multiple credit card inquiries on your credit report
•  You have received welcome bonus from multiple credit cards and have closed the account after some time.
•  You currently have a credit freeze and the issuer is not able to access your credit report
•  You have opened too many credit cards recently

 If you have not be granted the credit card due to the following reasons, it is recommended to work on root causes to increase chances for credit card approval. Try to call the company and ask for lower credit limit and if they agree instantly grab the card.

Frequently Asked Questions