Bef🍷ore applying for a credit card, ask yourself if yo🐷u will likely be approved.

Understanding🐟 the odds of being approved for a credit card can save you time. You can narrow your search for a card to the ones you’re most likely to qualify for. Second, limiting your credit card applications can minimize negative impacts on your credit score. Each new inquiry for credit can knock a few points off your score, so the fewer credit cards you apply for, the better.

Learn what it takes t🍷o be approved for a credit card and how you can increase your approval odds if you’re new to using credit or you’re attempting to rebuild your credit history.

Before Applying for a Credit Card, Know the Credit Scor🤡e Rangesಞ

Creditไ card companies consider several factors when they approve borrowers f🔯or a credit card. They include:

• Your credit scores
• Income
• Monthly rent or mortgage payment

Of those three, your credit score carries the most weight i൩n 🍃credit card approval decisions.

One way to evaluate your approval odds is by checking your credit scores in advance. 澳洲幸运5开奖号码历史查询:FICO credit scores, which range from 300 to 850, are used by 90% of lenders.

Mike Pearson, credit expert and founder of the credit repair site Credit Takeoff, explains how the score ranges affect your approval odds. “If you have a credit score of 750 and above, you’ll have your choice of nearly any credit card on the market, including ‘prime’ cards, which feature premium rewards and perks,” Pearson says. “You could still get rejected on the basis of a too-high 澳洲幸运5开奖号码历史查询:credit utilization ratio or a recent late payment—but ♋if you have an excellent credit score, you stand the best chance of getting approved for most prime cards.”

At the other end of the spectrum is the “poor” credit score range, which is a score below 580. If your score is in this range, Pearson says your best bet for getting approved for a credit card is a 澳洲幸运5开奖号码历史查询:secured card.

With a secured credit card, you make a down payment or deposit cash into an account when you sign up for the card, which provides c🌠ollateral. If you fail to pay the bill, the credit card company can use your deposit to cover the balance.

The average FICO score was 717 as of October 2023, according to an annual update published by FICO.

Improve Your Odds of Being Approved for a Card

Regardless of whe♉ther you have excellent or fair credit, you can take steps to raise your chances of being approved for a new credit card offer.

Check Your Credit Report and Score

If you haven’t checked your credit report and scores yet, this is a good place t𝄹o start when trying to improve your odds of getting a credit card. Your credit report is a collection of information that’s used to calculate your credit scores. This includes payment history, account balances, inquiries for new credit, delinquencies, and public records.

澳洲幸运5开奖号码历史查询:You can get your🅠 credit report for free at least once per year from the three main 澳洲幸运5开奖号码历史查询:credit bureaus, Experian, Equifax, and TransUnion, through AnnualCreditReport.com. If you’ve never checked yoღur credit report, it may be helpful to get all three reports at the same time to see how your credit history compares. For꧅ example, you may have a creditor that reports to only one bureau instead of all three, which could affect your credit score.

As you review your reports, check to make sure all the information is correct. You can dispute an error or inaccuracy with the credit bur✱eau reporting the information if you see an error or inaccuracy.

If the bureau verifies that an error exists, it is legally required to remove it or correct it, either of which could add a few points back to your score.

Practice Healthy Credit Score Habits

For FICO score calculations, two factors, in particular,🍌 carry the most weight: payment⛄ history and credit utilization.

Credit utilization

Credit utilᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚization is how much of your credit limit you’re using at any given time. Knowing how to manage these two factor🐟s is key to improving your credit score.

If you already have one or more credit cards, maintaining low balances can also help your score. Generally, lenders like to see your credit utilization at 30% or below.

Paying down your cu💛⛦rrent balances can improve your utilization ratio. Another option is to request a credit limit increase for your cards. Increasing your available credit limit will improve your utilization ratio, assuming you don’t make any new purchases against the higher limit.

Credit history

“Your payment history is the number one th♔ing that goes into calculating your credit score,” Pearson says. “Just one late or missed payment can send your credit score down by more than 50 points.”

You can avoid that scenario by making your payments on time every month. Automating payments from your bank account cജan simplify the bill payment process if you struggle to manage due dates. Alternatively, you could set up alerts through your bank or with your billers to let you know when a due date is approaching.

Compare Card Offers Before Applying

Credit card companies routinely change their credit card offers. While they may not explicitly state what minimum credit score they’re looking 𒁏for from consumers, many give a general range that indicates who the card is suited for.

For example, a credit card company ♎might offer a cash-back card with one rewards rate ♎for consumers with good or fair credit and reserve a card with a higher cash-reward rate or better perks for consumers with excellent credit.

Taking time to do yꦜour homework and research card options can help you narrow the field to the cards you’re bes🌄t suited for based on your credit profile.

From there, you can streamline the list further by determining which cards best fit your needs. For instance, if you carry a bal🤪ance, you may prefer a card that offers a low annual percentage rate (APR) on purchases. Or you might be interested in a card that offers travel ꩵmiles or points rather than cash-back rewards.

Remember to look beyond credit scores and consider the other requirements a lender may set, such as a minimum income threshold. Also, check your bank's card options against what other banks advertise. You may find it easier to qualify for a card if you have a positive banking history with your bank or credit union.

Frequently Asked Questions (FAQs)

The Bottom Line

Being approved for a credit card can take time if you don’t have a lengthy credit history or your credit score is recovering from a past mistake. Remember to be patient when building credit, as it can take time for your efforts to be reflected in your credit score. In the meantime, continue practicing good credit habits (such as paying bills on time) and consider enrolling in a free credit monitoring service to track your progress from month to mওonth. You can also sele✅ct from one of the best credit monitoring services.