The credit card application process can feel disheartening. When you struggle to get credit card applications approved, don’t give up. Before submitting your next application, try these three tips to increase approval odds. You’ll have a credit card in no time!
Reduce Outstanding Debt
Debt doesn’t disappear overnight. It takes time to eliminate debt. Whether it’s from previous credit cards or loans, it’s essential that you reduce your balances as much as possible.
As you send in credit card applications, banks will examine your debt. If you have extensive debt paired with minimal payments, it will signal a red flag to these companies. Ensure that you make payments toward outstanding balances to increase your chances of credit card approval.
Apply for Credit Cards Within Your Credit Range
One mistake people tend to make is applying for credit cards with high credit limits and amazing perks. If you’re struggling to receive approval, you may be applying for the wrong type of card.
People who have credit scores of 700 and above get easily approved for low-interest, high-limit credit cards. However, if your credit score isn’t quite where it needs to be, you should look at other options.
The first step is to check your credit score. Learn about the status of your credit to determine the best credit cards to apply for. You’re more likely to receive approval when you apply for cards that meet your personal financial criteria.
Avoid Submitting Too Many Applications
Although you want to find the right credit card, sending in too many applications is alarming to banks. They may assume you’re desperate for credit that you won’t pay back. In return, your application is likely to be denied.
Rather than submit applications left and right, find a select few credit cards that appeal to you and meet your eligibility. Applying for as little credit as possible will increase your approval odds for a credit card!
If you can’t find a bank you can trust, apply for a credit card at a federal credit union like Democracy Federal Credit Union. You’re sure to find a credit card that will meet your needs and improve your financial stability.