It’s normal to have some anxiety when applying for a credit card. Even while applying for a credit card may not be a matter of life or death, there is always the annoying risk that it won’t be accepted. If you’re applying for your first credit card or have just had an application declined, it can be very nerve-racking.
1.Test your credit
Your chance of getting credit cards is strongly affected by your credit score. A specific range of credit scores is the target audience for each credit card. The terms “poor credit,” “fair credit,” “good credit,” and “great credit” are frequently used to describe these categories.
You must check your credit to find out which cards you are eligible for. Using a free online credit score service like Discover Scorecard can let you achieve this. These tools nearly always display your credit score’s range as well as the factors that contributed into generating it.
Analyse your entire credit report for any mistakes that might be lowering your credit score if it is lower than you expected. The three consumer credit bureaux, Equifax, Experian, and TransUnion, are required by law to provide you with one free credit report each year.
2. Select the right credit card
The key to having your application approved is selecting the appropriate credit card. The greatest credit cards will be out of your grasp for the time being if you don’t yet have good credit or a credit history, and applying for one would be a waste of time.
Contact your bank or credit union to enquire. It might be simpler to obtain a credit card from your own bank if you have no experience with credit. Considering your history there,
3. Repay debt
Before applying for a credit card, strive to reduce any debt you may have, especially credit card debt. Even though having debt isn’t a deal breaker, a sizable amount may cause credit card firms to reconsider processing your application. They pay close attention to two important factors:
Credit utilisation ratio
The proportion of available credit that is being used. By dividing your credit card balances by your credit limits each month, it is determined. You might quickly improve your credit score by paying off large credit card amounts because it’s updated every month.
Debt-to-income (DTI) ratio:
Your income divided by your monthly debt payments. It might have an impact on credit card applications as well as mortgage applications. Your DTI ratio may be a sign that you will have problems paying another credit card debt if it is too high.
4. Launch your online application.
The simplest method to use when you’re ready to apply for a credit card is to do so online. On the credit card’s website, there is a “Apply Now” button. The application will launch if you click that. Be ready to offer the following details:
Full name
Date of birth
Social security number
Mailing address (and your previous address if you have lived your current mailing address for less than two years)
Email address
Phone number
Annual income
Note: include you’re all income,
The card providers will consider your income when deciding whether to approve your application and how much of a credit line to extend to you. Consumers who are 21 years of age or older may disclose any income they reasonably anticipate having access to.
5. Submit your application in (and follow up if necessary)
You have already put in all the effort at this stage. Once you are certain that everything on the credit card application is correct, submit it. Once the application is processed, you will receive one of the following replies:
Approved: Your request was granted. Within seven to ten business days, your new credit card ought to arrive in the mail.
Under review: More time is required for the credit card company to assess your application. Several business days are typically needed for this. You are welcome to call and enquire about the status of your application. The card issuer’s decision will be communicated to you in writing, and you might also get an email.
Rejected: You weren’t given approval by the card company. Although this is the answer that consumers dread hearing from card issuers, it isn’t always their choice.
You might be surprised to learn that a credit card denial can be overturned. Ask the customer service agent on the other end of the phone to take another look at your application. Most likely, your refusal letter or email includes a phone number that you can call. If not, the regular customer support number provided by the card issuer also functions.
Find why why your application was first rejected, then tell the agent why you’d make an excellent cardholder. You may, for instance, highlight your excellent credit card and loan payment history.
Even more calls can be made if necessary to the card issuer. When the initial representative refused to assist me, I’ve had luck using this method. Keep in mind that you only need one person to support you in overcoming that rejection.
After getting an credit card you must use it wisely and in such a way that you can get maximum benefits from the credit card company here is our 8 Tips to using a credit card wisely.