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Your first-ever credit card is like a stepping stone for your financial life.
The more mindfully it is selected and used over time, the better your Equifax credit score is.
But getting it approved in the first place can sometimes be a hard nut to crack!
You’re worried about your no credit history or a bad profile - there’s always a fear of rejection!
Worry not, experts at Plastk have got your back with their practical tips on guaranteed approval!
So, let’s dive straight into the points listed below.
You do remember your granny telling you how today’s healthy diet will benefit your tomorrow’s physical health, right?
Well… don’t worry, we are not going to ask you to take good care of your physical health to get your first credit card approved. Lol!
Coming back to our point,
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Building smart spending habits today guarantees your smooth credit card approval tomorrow! |
This is simply because when you:
It helps in building your financial personality that is both appealing to card issuers and your future self at the same time.
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Not paying your bills on time is just like a financial butterfly effect that can reduce your chances of getting your card approved in the first place!
Yes, you read that right!
Let us explain here:
There’s no doubt that different types of cards help you build credit scores.
However, certain financial bureaus are authorized to keep a check on your financial history in terms of bill payments, etc.
These bureaus are chiefly known as:
And when you apply for your first credit card, they would look into details even from these bureaus.
So, missed bill payments will send a message that:
This, ultimately, can lower your chances of approval.
Related Article: Beginner’s Guide To Canada’s Top 3 Credit Bureaus!
As mentioned above that different credit bureaus are authorized to keep a note of your financial activities in terms of:
And many others.
This also means that you do have your Equifax credit report or with other bureaus way before you even have a card.
So, here’s what you should do to ensure that your money works in favor of your credit profile:
This will help you present a healthy financial profile, regardless of how big or small it is, and secure your first-ever card for a better financial future!
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Choosing a secured credit card is as important as working on some basic financial habits. The main reason being the flexibility it provides to bad credit owners! Other include:
Above all, it aligns with your lifestyle, especially when you have a bad credit score or want to build one that:
And so on. Yep, that’s how important is your first credit card!
See: 5 Tips To Build A Lender-Friendly Credit Profile!
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How would it sound to know that your application for credit card approval was rejected based on your shopping history?
Pretty awkward and strange, right? But, the main question is, how did that happen in the first place?
The simple answer lies in the usage of services like “Buy Now, Pay Later” or probably overspending!
In the former:
All of this, indirectly keep filling your credit report with negative markings, making it look unhealthy with each passing day.
In the latter:
The same goes for the buy one get one free grocery hauls, etc.
This needs to stop! Why? Because your first credit card might become last due to your bad practices.
Bonus: 30-Day Rule To Avoid Overspending!
So, to help you make better decisions related to your credit card application and getting it approved, we bring you a few basic credit card terms to note and mistakes to avoid or simply the dos and don’ts of the credit world!
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If you want to literally nail your first credit card, you need to be at the top of your knowledge! Credit terminology, basic guidelines, expert tips - you need to know anything and everything to increase your financial literacy.
These basics will not only craft the right application but also help you use your card in your favor instead of the other way around! Here are some common terms to get familiar with:
As the name suggests, an annual fee is only charged annually to keep up with swift services related to your card, transactions, and everything in between.
See: Is It Worth Paying For An Annual Credit Card?
Autopay is something that helps you manage your expenses before they are sucked up by impulsive purchases. They help with on-time payments, savings, etc.
This cycle depicts the time between your first and second statements. Many users make the best of this cycle to ensure they pay less and less interest rates.
This period signifies the time you get between your statement issuance and the due date. Paying the balance within this period is exclusive of any interest rate.
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Suppose, you already got your first credit card, now, what’s next? Finding out how to use it the best way! Well, the easiest answer is to avoid the don’ts so that it doesn't affect your future financial security and stability.
So, wave goodbye to these don’ts to build a healthy relationship with your credit card!
Your credit utilization ratio should be kept below 30%. In an otherwise situation, it sends your money lender the signal that you are a “risky borrower.”
Regardless of how many rewards you have earned, if you are not using your credit card in line with your budget, soon it will take a toll on your finances.
Missing payments directly affect your credit score and financial profile. Therefore, always try to pay as much as possible.
If not done right, your credit card application can backfire, especially when you are applying as a newbie!
However, with right guidance at your fingertips, our experts believe that you will not only get swift approval but also make the wisest use of your credit card.
So, don’t wait a second and read the complete guide to know everything you need to know to get the guaranteed approval of your first ever credit card!
Good luck! 🙂