Nowadays applying for a credit card is very simple, we just need to fill an online form from a credit card service provider and click submit button. But getting approved by credit card provider requires some proactive planning that you should consider. Credit card provider will check your eligibility before they accept your credit card application, so here in this article, we have written few things you should consider before you apply for your credit card.
Things to Consider for Faster Credit Card Approval
Your credit score
Your credit score is the most significant factor that credit card issuer will check and make a decision to approve your credit card application. Some other formalities and requirement are depending on the credit card issuers. E.g., If your credit score is 300 to 600, they call it as bad credit. If your credit score is greater than 720, they call it as excellent.
Include your income in Credit card application
A good credit score is a good sign for credit card issuer and chances of your credit card application can be higher. But the only good credit score is not enough, most important thing is your income. Your credit card issuers need your income level to decide your debt-to-income ratio. That helps credit card issuers to check your ability to pay your credit card bills.
Reduce your debt-to-income ratio
Credit card issuer uses your debt-to-income ratio to determine your ability to pay your debt. Likewise, the more debt you have, less credit a lender willing to extend. As they think, from your income, you are paying 70% amount as your previous debt. So you have only 30% of your income is remaining to spend.
So make sure, before you apply for new credit card, you pay your other credit card or loans so that it indicates good sign and your capacity to control your debt. If you have 2 or more credit card, you should try consolidating by transferring your current balance to the credit card that has a lower interest rate.
Make sure your credit card application is accurate
When you fill your credit card application, check for errors in the filled form. Be specific with your entered details. The typographic mistake can consider as wrong information is being sent to the credit card issuer. So make sure you apply having most accurate information, to get faster approval on your credit card.
Don’t apply for more than one credit card at once
You should note that each time you are applying for new credit card, it dings your current credit score. Also you should not do credit card mistakes that can lead you to debt. Your debt-to-income ratio will be down because of this, and it does not look good to your credit card issuer. It is better to spend your time in researching the best credit cards with the lowest interest rate. However, if you still want to have more than one credit card, you should keep at least six month time between two credit card applications.
Apply for cards that fit your credit score
If you own fair credit, you should apply for the credit card that is best for people with fair credit score. Suppose you are having fair credit and applying for the credit card that is best for people who are having excellent credit, there are more chances of rejection of your credit card. So you should check your credit score and then apply for the credit card that matches with your current credit score.
Here in this article, we have discussed few things you should consider before you apply for credit card. Have you applied for credit card ever? Share your experience with your credit card approval process in the comments below.
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