How to Boost Your Credit Card Approval Odds
With the current economic downturn creating widespread uncertainty about the future, it is no secret that banks are tightening their grip on who approves new credit cards.
If you have recently applied for a credit card, you may have been asked to submit additional employment confirmation or to show additional proof of your income.
Jim Tragus, president, and CEO of Money Management International, Inc. (MMI), a non-profit credit counseling agency, says, “Applying for new credit today is different than it was a while ago.” As lenders examine potential lenders more than before the epidemic, they advise being prepared.
“Consumers need to be prepared to refuse new credit if they show any risk such as late payment, over credit cards, or possibly the fact that someone has some new credit. There are inquiries, “says Triggs. “Even if their credit score is considered good or excellent.”
If you are planning to apply for a credit card during Corona Virus, here are four ways to increase your approval difficulties, as well as what the credit card issuer may ask when you apply. While these steps may not guarantee your approval, they will definitely improve your chances.
5 Steps to Maintaining and Improving Your Credit Score
1. Repay the loan on time.
Making every instant payment is right for your credit score. Whether it’s your debt repayment or utility bills, they don’t lag behind in your payments to demonstrate responsible financial behavior.
2. Get credit for timely phone and utility bill payments.
Turning back to the above point, it pays your bills on time. Utility payments are recorded on your credit file via some CICs, and efficient management of your bills can potentially boost your credit score and keep you at the forefront of your finances.
An auto-debit facility is able to be set up to ensure that your credit card bill is paid on time without the hassle of remembering multiple payment dates each month.
3. Pay off your debts.
Reducing your debt is not responsible for boosting your credit score. Aim for a credit utilization ratio of 30% or less. This refers to the percentage of your total available credit that is currently being used, and the lower this percentage, the better your chances of approval.
4. Create a credit history
Young people who apply for a credit card often face rejection because they do not have a credit history. Yeah Al that sounds pretty crap to me, Looks like BT aint for me either.
Therefore, if you do not have a track record to qualify, you can exercise this right by becoming an authorized user on someone else’s card. This will help build your credit history, and joining someone with a good track record will further help your case.
5. Check your credit report regularly.
Before applying for a credit card, you should take out a copy of your report and see where you stand. Scan through each entry and quickly dispute any inaccurate listings to improve your credit file and score later.
Tips for getting credit card approval
Your credit score is a key factor in getting your credit card approved. In addition, you can follow these tips to further improve your chances of getting your credit card application online.
1. Minimize credit applications.
In general, too many tight moments on your credit file can have a negative effect on your credit score. Yes or no until you apply, but you need to know about it. Strategies to avoid any negative implications on your file.
If your credit score is a healthy figure of 750 or above, then you know that your chances of approval are bright. Even so, owning one is still beyond the reach of the average person.
Instead, you need to limit your options to a couple and then contact the credit card provider by phone so that your eligibility can be assessed before applying for a card. It is also recommended that you limit your credit applications to a couple of half-years and apply only for additional cards or loans if necessary.
2. Consider the different types of credit cards.
You do not need to get the best credit for all credit cards. Suppose your credit score is low due to past defaults, but you are back on track with your finances, or you are still building your credit.
In that case, you can look for credit cards with bad credit scores. Some options you may want to consider are secure credit cards, high-fee unsecured credit cards, and in some cases even free credit cards issued by your primary bank.
It will help you in two ways. First of all, you will have a credit card in your name. Second, you can build your credit history responsibly by using this card responsibly to qualify for a better low-fee card in the future.
For example, if you are applying for a secured credit card, you will be asked to deposit some money in advance, or your card will be saved in your name for a fixed deposit. ۔ This will give the credit card provider security to cover its losses in case of default and will allow you to build your credit over time.
3. Wait for a better time to apply.
Travel and leisure cards are usually offered to customers with a high credit score. However, with so many restrictions in the current era, you can always use this period to build your credit history and wait to apply for a new credit card once the current financial crisis is over.
It is also important to keep an eye on the latest products and offers launched by credit card issuers to stay up to date on any changes to eligibility requirements.