Key takeaways
- Successfully applying for a credit card starts with checking your credit score.
- Try to get preapproved for credit cards that fit your needs and spending habits.
- Improving your credit score is the best way to qualify for more cards. Use features like autopay to ensure you never miss a bill and up your approval odds.
Getting your credit card application approved is easier than you think. The key is to do a little prep work and apply for the right card. How do you do that?
First, you need to know what you want. Maybe you’re looking for a rewards card, or perhaps you need a card that prioritizes building credit. Either way, you need to know what creditors are looking for and what you qualify for. Then you can strategically apply and increase your chances of being approved for the card you want.
Let’s go over how to get approved for a credit card so you can learn how to beat the odds.
Jump to:
- Know your credit score
- Review your credit reports for errors
- Gather the information you’ll need to apply
- Don’t apply for too many cards at once
- Consider secured cards to build credit
- Become an authorized user
- Look for cards with preapproval
- Focus on cards that fit your credit score
- Apply at your bank or credit union
- Build credit early
- What happens if you get denied a credit card application?
- What to consider when choosing a credit card
- Bottom line
1. Know your credit score
Start by checking your credit score. Your score is a three-digit number that lenders use to assess how likely you are to repay the money you borrow. The higher your score, the more options you will have. Knowing your score ensures you only apply for cards you may qualify for. For example, if you have a 500 credit score, focus on cards designed for applicants with low scores.
2. Review your credit reports for errors
Your credit report is separate from your credit score. Your report provides a detailed history of your borrowing and repayment behavior, including accounts opened, payment history, inquiries, and any delinquencies or collections. Reports are maintained by the three major credit bureaus: Equifax, Experian, and TransUnion. The information in them may vary a bit by bureau. The bureaus use the data in the reports to calculate your score.
You can request a free copy of your credit reports every 12 months from each of the bureaus at AnnualCreditReport.com. Look for any errors or outdated information that could be dragging down your score. If you find mistakes, file a dispute immediately with the issuing bureau.
3. Gather the information you’ll need to apply
Gather the information you’ll need for your application. This will make the whole process go smoother. Most credit card issuers want to know your:
- Full legal name
- Date of birth
- Current address
- Social Security number
- Annual income
They may also ask how long you’ve been at your current address or job. If you rent or own, and how you pay for housing each month.
The issuer needs to assess your basic financial situation. It helps them understand how much you can afford to borrow.
4. Don’t apply for too many cards at once
A common mistake is applying for multiple credit cards within a short period. This approach can backfire, as each application triggers a hard inquiry into your report. Hard inquiries slightly lower your score, temporarily. Having several of them in quick succession can create the impression that you’re in desperate need of credit, which is a red flag for lenders.
Instead, take your time and find a card you like that you qualify for. Don’t waste time applying for cards you’re unlikely to get.
5. Consider secured cards to build credit
Secured cards are among the best credit cards to build credit with no credit. These cards are easy to qualify for, giving you a chance to boost your score. You will have to put down a security deposit – 100% refundable – to qualify. The deposit reduces the risk for the issuer and sets your credit limit. After six to twelve months of on-time payments and low utilization, you can upgrade to an unsecured card.
6. Become an authorized user
Becoming an authorized user on another person’s account gives you access to credit without having to submit an application. Ask a friend or family member if they would be willing to add you as an authorized user on their account. If they agree, you will be able to use their card.
Ideally, the person you ask will have a good credit rating. That way, their positive credit history will boost your score. As you build credit, you will have an easier time applying for a card on your own.
7. Look for cards with preapproval
Many credit card companies let you check your approval odds before you apply. Issuers that offer preapproval tools will only do a soft inquiry, which does not impact your credit score. You can gauge whether or not you are a good candidate before officially applying.
If you like, you can try to get preapproved for multiple cards. Then compare offers and apply for the one with the best terms and lowest fees.
8. Focus on cards that fit your credit score
One of the best things you can do to get approved for a credit card is to apply for cards that align with your current score. What credit score do you need for a credit card? Lenders offer a variety of cards for all types of scores. You can find 500 credit score credit cards or premium rewards cards for excellent credit. Apply for cards that match up with your score for the best approval odds.
9. Apply at your bank or credit union
You’ll be in a better position for approval if you apply with your current bank or credit union. That is especially true if you have a good banking relationship. Your financial institution will consider your whole history with them, not only a thin credit profile. They are more likely to give consumers a chance.
10. Build credit early
The higher your score, the better your chances of securing your ideal credit card. The best way to build credit fast is to pay your bills on time. Never miss a payment, and your score will thank you.
Does paying rent build credit? Yes, it can, if you have it reported. Same as utility bills, phone bills, subscriptions, etc.. Set up automatic payments to make sure you never miss a due date.
If you can, pay your credit card balances in full every month. This way, you will never have to pay interest, you’ll save money, and you’ll have a low credit utilization ratio. A low utilization ratio will also do wonders for your credit score.
Why does higher credit utilization decrease your credit score? Lenders worry that a high utilization rate indicates that you are overly dependent on credit. When you have low usage, it shows that you are managing your finances well, and they are more apt to approve you for another card.
What happens if you get denied a credit card application?
If the issuer denies your application, they will send you an adverse action notice. The notice explains the reasons for the denial. If your credit score was a factor, it will include specific information about your score and the credit bureau used. You have the right to obtain a free copy of your credit report from that agency within 60 days.
Does getting denied for a credit card hurt your score? The denial itself will not impact your credit score. The hard inquiry conducted by the issuer when you applied will have a small temporary effect on your credit. Do not exacerbate this impact by applying for more credit cards within a short period of time. Wait at least six months and take the time to address the issues in the adverse action notice. Otherwise, creditors may consider you desperate and deny your application again.
Got a credit card and a low score? Check out:
What to consider when choosing a credit card
There’s a lot to think about when selecting the right credit card. Cards come with different interest rates, fees, rewards, and benefits. You’ll have to consider how you’re going to use the card and what your financial goals are.
Annual Fee: Firstly, assess the annual fee and determine if the card’s benefits justify the cost. Many rewards cards come with high annual fees, as do cards designed for applicants with low scores. The fees help the issuer pay for the rewards or offer insurance on low-score cards that have a higher risk of default. You have to decide if you can afford the fee and if the benefits are worth the cost.
APR: Interest rates are another critical aspect. If you plan on carrying a balance, look for a card with the lowest possible APR to minimize interest charges. However, if you pay off your balance in full each month, you might prioritize cards with better rewards over lower interest rates.
Rewards: Rewards programs should align with your spending habits. Whether it’s cash back, points, or travel miles, choose a program where you can maximize the benefits based on your regular expenditures. Many cards allow you to earn rewards on groceries, gas, and other everyday expenses.
Benefits: Lastly, consider any additional benefits, such as sign-up bonuses, free monthly scores, or no foreign transaction fees, if you travel abroad. These perks can add significant value.
Learn about credit card terms
Credit cards come with lots of terms. Understand what they mean so you will know the cost of the card and how to avoid unnecessary fees and interest charges. Here are some key terms you should be familiar with:
- Annual Percentage Rate (APR): The interest rate you’ll pay on any balances carried from month to month.
- Penalty APR: A higher APR that is applied if you miss a payment or fail to pay your statement on time.
- Annual fees: The fee you pay each year for the convenience of using the card.
- Credit limit: The maximum amount you can charge on your card. It’s best to only use 30% of your limit to maintain a healthy credit utilization ratio.
- Late payment fees: The fee charged if you miss a payment or pay your bill late.
- Monthly maintenance fees: The monthly charge found on cards for low scores is used to help maintain the card. These are usually waived for the first year.
- Cash advance: When you use your card to withdraw cash. Cash advances are subject to a higher APR, ATM transaction fees, and additional fees. On top of that, there is no grace period, so you accrue interest right away.
- Rewards programs: Many cards offer rewards for certain purchases. Understand how to earn and redeem rewards to maximize the benefits.
Looking for a card with a high limit?
Compare cards against your financial needs
Once you know what cards you might qualify for and understand their costs, think about why you need a card. Are you a frequent traveler looking for miles, or could you benefit more from cash back on everyday purchases? Is improving your score your highest priority?
Decide on what you want, then look for a card that fits your specific needs, budget, and spending habits. If you’re going to pay an annual fee, make sure you can afford the payment and that the benefits outweigh the cost.
Factor in the interest rates, especially if you plan to carry a balance. A lower APR can save you significantly in the long run. Lastly, don’t overlook additional perks such as free monthly scores and zero liability on unauthorized purchases, which can add substantial value.
Consider the approval timeline
How long does it take to get approved for a credit card? Sometimes it can happen instantly, other times it takes a few business days.
Certain issuers offer instant approval credit cards for bad credit. These cards have a fast approval process that gives you an immediate decision on the status of your application. You find out if you’re approved, denied, or if they need more information within minutes of applying. This can be very helpful if you need a card right away. It’s important to note that “instant approval” doesn’t guarantee acceptance; it means that the decision-making process is quick.
If the issuer wants more information, it can take several days to find out if you’re approved. Whether you’re approved or denied still depends on the same factors – your score, income, rent or mortgage payments, etc. The issuer simply runs a preliminary check. If you appear eligible, they grant you conditional approval while performing a more in-depth review of your financial history.
Instant approval cards are tempting, but don’t get carried away. Always review the terms and conditions before you apply to make sure you can afford the card.
Find the card for you!
Choose a method to apply and follow each step
When applying for a new credit card, you have several options: online, over the phone, through the mail, or in person. Each method has its own set of steps and timelines for approval.
Applying online is the easiest and fastest way. You enter your information on the issuer’s site and wait for a decision. When you apply for a credit card online, it typically only takes minutes to be approved. Some applicants require further review, which may take a few days. When you’re approved, you may also get instant access to your card number.
Over the phone applications provide a personal touch, allowing you to ask questions and clarify terms directly with a representative. This method can still offer quick decisions but might take longer than online applications due to potential wait times.
Applying through the mail is the slowest method, as it relies on postal service timelines for both sending your application and receiving your decision. This process can take several weeks.
In-person applications at a bank branch can be as quick as online applications if the bank offers instant decisions. Additionally, bank representatives can assist you with the application process and answer any questions immediately. Visiting your local branch can be a good idea if you need to apply for a credit card for the first time.
Regardless of the method you choose, ensure you follow each step carefully and provide all required information accurately to avoid delays.
Frequently asked questions
1. What to do if you don’t have a credit score.
Consider starting with secured cards or becoming an authorized user on someone else’s card. Secured cards require a deposit that acts as your limit, and so they are low-risk for lenders. Many do not even need a score. Being an authorized user allows you to benefit from the primary cardholder’s responsible behavior and good score. Either way, you can work on your score, get it into the good range, and apply for better cards
2. How to choose the best credit card issuer?
The best credit card issuer will be the one that offers a card that fits your needs. Look for issuers that offer free monthly credit scores, automatic credit limit increases, and easy online account management.
3. Are there other options if I don’t qualify for a credit card?
Credit card alternatives for those who don’t qualify include becoming an authorized user, obtaining a secured card, or utilizing a buy now, pay later service.
4. Does applying for a credit card hurt your credit score?
Applying for a credit card will temporarily lower your credit score due to the hard inquiry. The dip is small, and your score will improve as you make on-time payments.
5. What’s my credit if I don’t have a credit card?
If you do not have a credit card or loan, then you may not have a credit score. The credit bureaus use information from lenders to determine your score. If you do not have enough lending information, they will not be able to calculate a score.
Bottom line
Understanding how to get approved for a credit card involves more than just filling out an application; it requires knowing how to strategically apply so you can get the best card for you. Look at your credit score, review your report, and then research cards to find the ones you qualify for.
Try to get preapproved before you apply. While being preapproved does not guarantee you’ll receive the card, it lets you see your chances and compare offers without hurting your score.
Getting a new credit card can be exciting. Follow these tips and soon, you’ll find the right card to fit your needs and lifestyle.