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:
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:
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.
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.
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:
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:
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:
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!
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:
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:
If you spend lavishly on your card, you need to pick a rewards credit card that can offer you some good benefits:
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:
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:
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:
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:
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:
The first and foremost thing any credit card application involves is asking you to provide:
The next step is to:
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.