How To Apply For A Credit Card & Get Approved
Although the process of applying for a credit card is a relatively simple one nowadays, getting approved for a credit card can be a very different story. The last thing you want to do is apply for lots of cards and get rejected from all of them, as this can severely damage your credit rating. Instead, follow these simple steps, and you should be just fine.
Check Your Credit Score
One of the most important factors in deciding whether or not you will be approved for a credit card is your credit rating. Most credit cards want you to have good or excellent credit, which may make it hard for you to secure a credit card if you’ve missed a few phone bills or got behind on your rent. If this is your case, then you may want to consider ways of raising your credit score, such making payments on time and avoiding debt before applying for any type of credit. However, there are cards out there aimed at people with bad credit, so you could apply for one of those instead, and ensure you use it responsibly to build up your credit rating.
Pay Off Your Debt
You are much less likely to be accepted for a credit card if you already owe a large amount of money to other lenders. Consider ways of paying off your debt quicker, such as paying more than the minimum each month or making multiple payments a month before applying for a credit card. Reducing your debt is certain to increase your chances of your credit card application being approved. Visit stepchange.org for advice on paying off your debt.
Be sure not to simply apply for the first card that you see, as you are unlikely to get accepted for it if you have bad credit, especially if the credit card comes with lots of rewards. Instead, ensure you shop around and do some research on possible options for you. There are plenty of websites, such as offers.creditcard, that have lots information on ways to find the best credit cards, especially if you have less than excellent credit. As mentioned earlier, you might want to consider a credit card aimed at people with bad credit specifically, as you are more likely to get accepted, and sensible use of the card can help to improve your credit rating.
Mention All Of Your Income
Although your credit rating is a great indicator of how sensible of a borrower you are, it doesn’t take into account on very important thing: Your current income. Although you have bad credit, this could just reflect the fact that you lost your job and couldn’t afford to make payments for a while, or had to spend out on an emergency and didn’t have the funds left over to pay the rent. Your current income indicates what you will be able to pay back now, and is an incredibly important piece of information, so ensure you mention all of your current sources of income on your application.
Even if you’re rejected a few times, don’t give up. There are lines that you can call to get you application reconsidered if your believe yourself to be a worthy borrower. Just ensure you don’t apply for lots of credit cards in short succession, as you don’t want to cause further damage to your credit rating.