A credit card can be super helpful for a lot of reasons. You can use it to build credit, earn rewards and miles, have a back-up plan in case of emergency and so much more.
Applying for a credit card is the simple part—it’s getting approved for the credit card that may take more planning for some. Before applying for a credit card, you want to make sure that it’s one you’ll get approved for—that way you don’t hurt your credit score for no reason.
Whether you’re a first-time credit card user, or you just need to build your credit, here are four tips that will help you get approved for a credit card:
Access you credit score
Before you apply for a card, it’s important that you access your credit score and learn a little about it. There are plenty of free online tools that allow you to check your credit score with a soft inquiry (this won’t hurt your score!). If you already have a credit card account or bank account, you may be able to check your score for free via their platform.
If you have good or excellent credit—great, you’re on the right track to getting approved! If you don’t have good or excellent credit, there’s a high chance that you won’t be approved for most credit cards. Consider looking into a secured card or a card for people with low credit. If your score is low because you have no credit, look for a starter credit card when applying.
And if you do have a low score, you’ll need to start improving your credit. We’ll discuss that in the next step.
Improve your credit score
You’re much more likely to get approved for a credit card if you have a good score. If you have a low score, here are a few ways you can improve upon that:
- Make payments on time.
- Keep balances low on existing credit cards.
- Avoid new debt.
- Low credit utilization.
And as mentioned previously, your score could be low solely because you’ve never had a credit account. If this is the case, a starter credit card could help you begin to build your credit. Some credit cards offer starter options like this for students.
Prepare for the application process
The application process is fairly simple, though you’re more likely to get approved if you accurately fill out the application. That’s why it’s important to properly prepare.
The most important thing you need for the application process is your Social Security number, so make sure you have that on hand.
You’ll also need to know your income. Income includes money from your job, as well as income from your partner or other outside sources. Card issuers use income to determine your debt-to-income ratio. This helps them determine your ability to make payments. You can improve your ratio by increasing income or decreasing debt.
Apply strategically
Each time you apply for a card, it shows up as a check on your credit score. Therefore, it’s so important to apply thoughtfully.
If you have low credit, there’s a very slim chance that you’ll get approved for a card with a big sign-up bonus or enticing rewards. So make sure you only apply for cards within your reach.
You can also always use a free online tool to see if you pre-qualify for any cards. This helps ensure that you only apply for cards you know you’ll get approved for.
Trouble finding cards you pre-qualify for? A secured credit card is another option. These cards require a cash down payment to secure your line of credit. From here they work as any other credit card would. Some of them even offer great bonuses and rewards!
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