Charles H. Miller
You may have seen some cool credit card but you are not sure whether the bank will approve your application. If you’ve been acting responsibly in terms of your personal finances, chances are you will be approved. Generally speaking, if you don’t take too much credit, don’t sign-up for credit cards every single month, and have a decent/good job, you will be able to get some new card the moment it has been released.
When you submit your application, the software in the backend will make the first judgment based on all the available information about you. Then it could automatically approve you, or send your request to the actual human being who will decide whether you can get the card or not.
Presuming you qualify for the card, here are 5 things you could do to increase your chances of being approved.
1. Know Your Score
Most travel credit cards require good credit score (between 700 and 749) with the best requiring the excellent score (750+). Don’t expect the bank to offer you the card that includes airport lounge access if you haven’t made regular monthly payments. So make sure you know your score before applying for a new credit card. In that sense, you could request a copy of your credit history from the three major consumer credit bureaus to find out the details. To do that, visit AnnualCreditReport.com, and ask for the “goods.” This service, BTW, is the only source for free credit reports that’s authorized by federal law.
Also read: How to Dispute a Mistake on Your Credit Report
2. Apply For The Card You Can Have
You don’t want to read the “denied” email, right? Well, if you don’t have the perfect score don’t sign-up for a credit card that includes a ton of benefits. Except if noted otherwise, presume that a credit card with an annual fee north of $70 and a pile of free perks is made only for those with excellent credit score.
3. Reduce Your Outstanding Debt
And reduce it as much as you can before applying for a new card. The important thing to note here is that you should do this before the end of your card’s statement period. If you pay your balance after your statement closes, it won’t make any difference in what’s reported to the credit bureaus that month. Then, once you have made the payment, wait a few days for the balance to be reported to all the credit bureaus and then apply for a new card.
4. Pay Off Outstanding Balances on Cards From the Same Issuer
Say you want a new card from Citi and you already own one of their cards. Before applying for the new one, make sure to pay off all the outstanding balances on the one you already use. This will significantly increase your chances of being approved. When you think about it — it is a common sense that the bank may not want to give you the second card since you still have debt on the first one.
5. Include All Sources of Income in Your Application
This is one of the most common mistakes people make. For one reason or another, not everyone is including all of his/her household income. Here you could include such sources as alimony, child support, disability benefits, investment income and disbursement of retirement savings. This will show the bank that you are capable of managing the potential debt on your new credit card. So if you have multiple sources of income, make sure to include all of them in the application.
What If All That Doesn’t Work?
You can always call the bank and ask for reconsideration. Before making the call though, make sure you did your homework and have paid the outstanding balances. From there — presuming you do qualify for the card — it’s all about persuasion. You may have to explain to the person on the other end of the line why you want that card. Good luck!
And if you are looking for your next credit card with rewards, perhaps we can help. The link below this article will take you to the page where multiple such cards are compared. We are confident you will find the card that fits your lifestyle. Check it out. 😉
