Credit Tip Tuesday #56 How To Get Approved For A Credit Card? Steps To Apply | Which Card To Choose

Are you going to apply for a credit card for the first time? 

Do you wish to know your approval odds for the particular card?   

Or, 

You might be here to know how to apply for a credit card? 

And, most importantly, 

How to get approved for a credit card with poor, bad, or no credit? 

Of course, as far as this topic is concerned, you might as well know everything about it. 

How to apply for a card? How do you get approved for it? Which credit card to pick? How to avoid inquiries on your profile? 

And so much more surrounding the ‘credit card application and approval’ topic. So, let’s start the journey:

How To Get Approved For A Credit Card? 

Before picking the credit card company of your choice and applying to it, there’s an additional thing you must do: Calculate your approval odds! 

So, what does that even mean? Ah, no need for an eye-roll, fellows. Let us explain: 

• Your credit score range 
• Your income 
• Your mortgage or rental payment 

These are the factors that will most likely decide the status of your credit application. Of course, your credit history, spending habits, and money management can also play an important role. 

But, all in all, your credit score will carry the mass burden.  

1. Credit Score 

Image Credits: Freepik 

Wondering how and mainly why?  

For that, you need to know what a credit score is? You can say it’s a 3-digit number that decides the worth of your application. 

According to Mike Pearson, a credit genius, if your credit score falls in the good score range, approval chances of your credit application immediately increase. 

However, what if you have a bad credit score? Or, even no credit at all? Then, can you not apply for a credit card? Can you not enjoy the perks of a good card? Yes, you can!   

Here comes the secured credit card in the game. It is more like an instant approval credit card which is solely made to help people like you who have bad or no credit. 

2. Income 

Image Credits: Freepik 

The second factor that can help you get approved or rejected is your income. Now, it depends on which credit card company you chose to apply to, but overall they will check: 

• If you have a stable income to pay your bills
• If you overspend or like to exceed your credit limit  

Banks or companies don’t want to butt in and make you insecure about your employment status or financial conditions. 

They only want to ensure that your finances are enough to pay bills and credit balance.  

So, what if you’re a freelancer? Or, you have no guaranteed income for the month? What can you do to improve your status?  

Here are some money-making tips you can follow to improve your credit approval odds: 

1. Set financial goals and make a budget to achieve them
2. Sell the no-longer-in-use items to pad your monthly income 
3. Join the paid surveys online and get the money to answer questions 
4. Join the paid surveys online and get the money to answer questions 
5. Get a weekly part-time job or get paid for driving (Uber) 
6. Learn beginner skills that pay (social media marketing, logo designing, etc.) 
7. Join freelancing apps and try to make money off of gigs (create presentations, resume, content, or anything you are best at)

3. Mortgage/Rental Payment

Image Credits: Freepik  

Your rental payment or mortgage loans can impact your chances of getting approved for a credit card. 

How? 

Suppose your monthly income is $2500, but $1200 is your rental payment, and $800 cuts off for your mortgage. So, there’s a chance your application will be rejected.  

Moreover, there’s also a chance even if your application is approved. Your credit company won’t allow you to pay the debt with the card. The reasons could be:  

• The processing fee might be more than the actual reward points 
• High-interest rates if you fail to pay your bills on time 
• You may cross your credit limit or reach the credit limit, thus increasing your credit utilization 

So, here’s what you can do, wait for the closing date of your mortgage and then apply for a credit card. 

If you already have a credit account that you no longer use, keep them open so there won’t be any inquiry when you apply for a new card. 

You Can’t Avoid This: Click to read the detailed guide by CNBC to find the tips that can help you increase your chances of getting your credit application approved.  

Now that you know the approval odds for your card application, it is time to find out how to apply for it? But, even before that, you need to decide on which card you are going for?  

We have discussed some helpful tips to let you pick the best one in our next section. Let’s find out! 

How To Choose The Right Credit Card? 

Image Credits: Freepik 

There are so many types of cards out there with endless benefits and offers. So, how do you know which one works best for you? 

If you are someone with bad credit or no credit history, you should opt for a: 

1. Secured Credit Card   

It is a card type secured with a deposit by the card owner. That instantly clears one thing: you have nothing to lose! It’s your money, and you’ll be spending it only if you don’t pay the company every month on your bills.  

So, here are some reasons to pick this card to rebuild your bad credit and Equifax credit score: 

• Credit update to top credit bureaus (chance to rebuild score) 
• Cash deposit is secured by the company (deposit is not loaded to your card) 
• Low-interest rates as compared to other cards 
• You can view a free Equifax credit report to improve your score further 
• Some companies provide instant approval of the visa credit card 

If you spend lavishly on your card, you need to pick a rewards credit card that can offer you some good benefits: 

2. Rewards Credit Card 

It is a type of card that helps you earn miles, bonus points, rewards, redeemable gifts, and all the good stuff if you pay with this card. Here are some benefits: 

• Reward points on almost every purchase you make 
• Earn redeemable points (can be used for traveling, shopping, groceries, meals, etc.) 
• No annual fee (depends on the company) 
• 1-5 percentage of cash-back on purchases 

If you have a high credit debt on your previous card that costs you a tremendous interest rate, you should pick a balance transfer card: 

3. Balance Transfer Card 

As the name suggests, it’s more like a balance transfer card that you can use to pay down your debt but at a considerably low-interest rate. Here are some benefits: 

• Help deal with the debt faster 
• Usually offers low-interest rates 
• Flexible and advantageous reward categories  

In general, here’s how you can pick the right credit card if you are a student, someone suffering from bad credit, or here to choose your first card: 

• Assess the annual fee and see it’s feasible for you 
• Look for the interest rates (what if you miss a payment) 
• See if the company report to credit bureaus (essential for credit building) 
• What rewards, bonus points, cash-back, and discounts do they offer 
• Check the cash-flow/income and credit score requirement  
• Look for penalty fees or extra charges before applying 

How To Apply For A Credit Card? 

 Image Credits: Freepik 

You’ve decided which card you like. You’ve searched everything about it: the perks, the offers, the fees, and all that important stuff. 

Now, all that remains is your account application. You can fill it in person or apply for the card online, totally up to you. 

Here’s how you can apply for a credit card for the guaranteed approval: 

1. Fill In The Basic Details 

The first and foremost thing any credit card application involves is asking you to provide:   

• Name 
• ITIN or social security number  
• Complete address 
• Total income (monthly/yearly) 
• Extra payments (fixed cost; rental, mortgage, insurance) 
• Cash-flow guarantee (depends on the company’s policy) 
• Any assets 
• Savings or other spending accounts 

The next step is to: 

2. Agree To The Terms & Conditions 

This section will include the details of the annual fee, monthly fee, charges, penalties, fines, interest rates, transaction fee, etc.  

Thoroughly read everything, ask what you don’t get, and then finally agree to the conditions.  

And, that’s it. There you have it. You have successfully applied for the credit card. Of course, the basic details required or the terms and conditions mentioned will vary depending on the credit card company. 

Overall, these were all the common things almost every credit card company required from the applicant. 

Bottom Line 

That’s it from our side, peeps!  

Keep visiting Plastk Blogs if you want to read more such helpful content. Lastly, we will be updating the list of credit cards you can pick, so don’t forget to revisit this article.