How To Get Your Credit Card Application Approved
Credit approval has become more strict of recent and it is even more challenging if you do not have a good credit history, however, this doesn’t mean that getting a credit card is impossible. By taking care of some basic factors, you can highly improve the chances of your credit card application getting approved.
Apply for a card that suits your score
According to Simon Sule who is the founder of Credit Cards NZ, when it comes to applying for a credit card, you need to be realistic. You should not apply for a credit card that you can’t afford or to which you do not meet minimum requirements. This is because each time your credit card application is disapproved it negatively impacts your credit score and makes it harder for you to get a subsequent application approved.
The devil is in the details
When you are applying for a credit card, it is very important that you keep an eye on the details and that you make sure that everything is as it should be. These details include personal information such as your home address, state of employment, salary, existing debts, monthly expenses and all qualifying sources of income, among other things.
All of this information has to be accurate and you can’t afford to embellish the truth. Remember that everything is on record, so the bank will ask you to back your information up with supporting evidence. If there’s a difference between the information and the proof you provide, your application will most certainly be declined. Make sure you double check everything before you apply so you can increase your chances of approval.
Make sure that your credit rating is on point
Your credit rating and history are two of the most essential pieces of information to consider when it comes to getting your credit card approved. Banks use the credit score system to determine the creditworthiness of every applicant, which means it’s a decisive part of the process.
Your credit score is of course determined by previous and existing lines of credit, going from your mobile phone contract to bigger things like mortgages or car loans. With this information, the bank is able to calculate how much you owe and they can check your payment history. This will tell them how responsible you are with your credit and if they find that you depend too much on it, your application will be declined.
That’s why it’s important for you to keep a healthy credit score and if you still haven’t built much of a credit rating, start working on it. If you don’t know how to start, make sure to seek financial counsel so you can make all the right choices.
Before you apply for a credit card, make sure that you double check your credit rating to confirm that all of the information is accurate. If you happen to notice any mistakes, contact the agency and request for a correction before you use these documents to make your application.
Organize everything as best as you can
When you put together your application, you don’t only need to make sure that all the information you provide is accurate and verifiable, you also need to include as much detail as you can.
Your bank needs to know everything; every loan or line of credit, no matter how small or old. If you don’t include something and they find it, they will believe that you were hiding something and it will look bad. Make sure your application is complete and that every detail is included before you file it in.
Don’t apply for several credit cards at once
One of the most common mistakes people make is trying to apply for several credit cards (especially balance transfer cards) at different banks all at the same time. They figured that if they don’t get approved at one bank, they will have other choices, but doing this can actually cause problems.
First of all, it just looks bad! Second of all, it can easily damage your credit score. Every time you apply for any kind of credit, you open an inquiry into your history and the more inquiries you provoke, the more your credit score will suffer.
This damage is temporary, but if you apply for lots of credit cards the damage can be quite substantial nonetheless. That’s not at all what we want because it just makes it harder for you to get a credit card application approved in the future.
Pay off any debt you may have with the credit card company
One of the many ways to increase your chances of approval is by taking care of any balances that you may have with the same credit card company because the bank sees all and they will know how much you owe. If you already have other cards with the same credit card company, make sure that you’re up to date with the payments or at least try to reduce the balance as much as you can before you apply for a credit card.
Keep the restrictions in mind
Every credit card company has its own way of doing business, so make sure that you’re aware of their restrictions before you apply for any new card. There are some companies that have a limit of four accounts per person, so make sure that you stay within the issuer’s limits and do your best to comply with their policies and requirements.