It’s easy to apply for a credit card, but some people find it difficult to get approved. It is possible for anyone to get approved if they know what they are doing. Some people need to make a little extra effort to get the job done.
The Credit Score
Each consumer has several credit scores, and lenders check these scores before they approve anyone for a loan. Lenders approve of people with the highest credit scores because their credit histories are the best. If an applicant cannot say that his credit scores are in the good or excellent range, he may want to wait until his scores improve to apply for a credit card.
Improving Credit Scores
If a person’s credit scores are in the “average” or “bad” range, they can improve them. The first things they can do is begin to pay their bills on time, keep the balances on their credit cards very low and avoid taking on new debt. The credit utilization ratio would ideally be 30%. This means that the person would have a $3,000 balance on a $10,000 credit limit.
If the credit utilization ratio is higher than 30%, the consumer must take some time to pay off this amount. They can also make payments twice a month to ensure that their balances remain as low as possible.
Answer Questions Truthfully
Every card company will ask applicants the same questions. Card issuers will want to know each applicant’s Social Security Number and yearly income. They also determine each applicant’s debt-to-income ratio. Applicants can improve these numbers by decreasing the amount of debt they are carrying and increasing their income. When applying for a credit card, consumers can offer their income, but they can also submit money they receive from their spouses or significant others.
It is important that consumers do not say that they are earning more than they are. This can lead to a credit card fraud charge. Also, if they are unemployed at the moment, this will not automatically disqualify them from being approved for a credit card.
Improve the Chances
If consumers have any past due accounts on their credit reports, they must pay those before they apply for a credit card. Then, they can look for a card that they are the most likely to receive. If the credit card is a premium card, this will not be the best option if you are a consumer with lower credit scores. After a consumer has a good history with a credit card that is for those with bad credit, he may be able to apply for a better card in the future.
The best place to fill out an application for a credit card is with SoFi. As per their experts, “Once you apply and get approved for the SoFi Credit Card, not only can you tap to pay while you’re out making purchases—you can tap to play for a chance to win a welcome bonus between $10–$10K in rewards points.” If a consumer is approved for a credit card with SoFi and sets up direct deposit, he or she will earn 3% cashback for any of their financial goals. This card doesn’t have an annual fee, and if the consumer makes 12 consecutive payments on time, SoFi will lower the consumer’s APR by 1%.