A credit card is far more than just a piece of plastic. Credit cards are incredibly convenient forms of payment that allow you to make transactions nearly anywhere, and when used correctly, they can help you build your credit as well. But, some people find themselves frustrated when they fail to get approved for the card that they want. We've done the research to find out why people get approved and declined, so you can fill out that application with confidence. Find out how to apply for a credit card successfully below!
Credit Score
Do you know your credit score? This single number can have a major impact on the approval or denial of your application. Generally speaking, credit card companies want to enroll customers with good or excellent credit. That means you should shoot for a score of 690 or higher for the best luck. If you fall below that threshold, you might consider an option like a secure card that can boost your credit score over time.
Debt Level
Your credit score isn't just about how much money you have, but also how much you owe. Your debt is accounted for nearly one-third of your total credit score, so it pays to get into good habits. If you constantly max out your credit cards, this may affect your ability to get another card. Try to keep your balance under 30 percent of your credit limit. Then, don't forget to pay off your balance as fast as possible. Options like payday loans or cash advances can be valuable lifelines if something unexpected drains your finances, so you don't fall behind.
Application Tips
While it's important to have a great credit score and limited debt, it's also vital to fill out the credit card application accurately. Before you apply, do a little research. Some companies lure customers with large sign-up incentives or appealing rewards, but is that truly the best credit card for you? Don’t apply for just any card you see. It's well worth the time and effort that it takes to fit your credit profile. Additionally, it's important to include all of your earned income on the application. If you have a side job along with a full-time job, don't leave that information out. It can help when companies determine your debt-to-income ratio. But, no need to inflate your income! Just be honest, and you'll find the right credit card match in no time.