Credit cards are starting to become a necessity. Although it tends to make life easier, it does have its fair share of cons. One of the essential tips in getting approved is being wary of your credit scores. Listed below are six steps to help you get approved.
Know Your Credit Scores
Credit scores are vital in terms of heightening your credibility when it comes to applying for personal loans, opening a bank account, and other aspects that require your capacity to pay. Having good credit standing allows you to apply for a credit card without any fuzz.
If you, however, have a negative record in keeping up with your payables, you might want to consider getting other options. There are also secured cards or debit cards for those who have bad credit scores.
Gain Access to Your Credit Scores
Allow yourself to be updated when it comes to keeping track of your credit scores. There are several ways to check on them, and most of which are done online. If you already have access to your credit card account, you may be able to check on your scores through the bank’s online portal.
Improve Your Credit Score
In applying for a credit card, having a good credit standing does wonder. Contrary to what most people think, having good credit scores are attainable, and quite easy to achieve if you have good money management skills. Three of the most important things to consider for you to get a good credit score are making payments on time, keeping balances low on existing credit cards, and avoiding new debt.
It is also helpful to prioritize your payables, making sure that you have the initial payments processed, eliminating the risks of non-payment and interest.
Choose the Package Wisely.
It is unavoidable to get excited over the fact that you’ll soon have a credit card if your application gets approved. It is important, however, to choose the plan that suits your needs and your lifestyle. If you’re struggling with a bad credit score, don’t go for the first offer you see. There’s a possibility that if you apply for cards with a huge sign-up bonus, there’s a chance that you might not get approved.
If you’ve applied and got rejected numerous times, it is best to apply for a secured credit card first. It will use your cash deposits upon approval. This is for the bank to have security money in case the payment delays.
Include All Sources of Income
When stating your source of income, be as detailed as possible. Make sure to include all sources of income. Issuers often consider your capacity to pay based on the amount that’s going in your bank account. They would sometimes calculate your debt-to-income ratio where they’d consider your monthly expenses.
Including all your income as detailed as possible gives them an idea of how you will be able to pay off your credit card dues. Although you’re encouraged to declare your income, avoid overstating it. Make sure that the details you submit are truthful and accurate. If you’ll get caught lying about it, there’s a huge possibility that you’ll face the consequences, which includes being blocked from reapplying.
Don’t Give Up
Getting rejected after sending your credit card application might leave you feeling in the dumps. It might be a bit challenging, but being able to understand why you got rejected can help you improve your application on the future. Best if you reapply after 6 months. Given that amount of time, you’ll have ample chances to improve your credit score.