A credit card helps manage your cash flow needs every month. With a credit card, you can track your expenses, get richer targeted rewards, find security, and have the convenience of using it anytime.
With so many advantages, then, it makes sense to apply for a credit card. Credit card are very helpful because they can help us in an emergency situation, a last minute trip, anany other eventuality.
A credit card application isn’t complicated. The truth is, in many cases, managing things like car rentals, vacations, and emergencies are much easier when you have a credit card that ties to your account.
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Understand the Basics of Credit Scores
When issuing a credit card, the issuer is mostly concerned about your credit scores. A credit score is a three-digit number that assesses your creditworthiness based on your credit history. This score may exist between 300 and 850 points. The higher the score, the greater are your chances of approval.
If you need a high reward credit card, a good or excellent credit score from 690 to 719 and above will work for you. In case if you have a poor history, either wait until your credit score improves or opt for secured cards instead. A secured card needs a required deposit in your bank account before opening an account and getting a credit card.
This is a great way to start building your credit or to help your credit score in the case your credit is under 690. Other great and fast way to increase your score is buying or leasing a car. After getting the first credit card is important to make payments on time. Other very important thing is to keep your credit card debt under 30%. Pay more of the 70% of our monthly debt will keep our credit score in good standard.
Good credit is utmost important because it can help us to buy a house, get a student or business law. Having good credit really help us to improve our lives.
Increase Your Credit Scores
Nearly 30% of your credit score depends on your debts. Hence, keeping your credit utilization ratio below 30% is the right thing to do. You can arrive at the credit utilization ratio by dividing your credit balance by your credit limits.
You can improve your credit scores by notches if you:
- Pay your debts on time
- Avoid fresh loans
- Keep minimum balances on the cards you own
Take Time to Research Your Options
Approvals are difficult for credit card applications with weak credit reports. Every application leads to an inquiry on your credit scores knocking off precious points. But you can improve your chances of approval by pre-qualifying.
There are online tools to assess your profile and financial history, which in turn lists the cards for which you can pre-qualify. It improves the chances of approval.
And if you have good credit scores, you can apply for the high-reward credit cards with features like:
- High credit line to build your credit over time
- Account alerts to avoid any unexpected charges or mistakes
- Personalized due dates for monthly payments
- Round the clock customer support
- Unlimited rewards in the form of cashback, travel miles, and no expiration of rewards over the lifetime
For example, if you have an average or good credit score, you can think of applying for a Capital One credit card. By setting up the Capital One Get My Offer, you’d be able to find privileges like zero annual fees, increment in the credit line, fraud coverage in the event of a theft, and online banking access, apart from other benefits.
Enter Complete Details in the Application Form
When filling out the application form, don’t hold back critical information your bank may need for approval. Mostly, issuers use your total income to calculate your ability to pay off purchases. Don’t forget to add every source of income you have, including the part-time jobs and household income clubbed with the income of your spouse or partner.
The bottom line is that it’s safer to apply for a credit card after going through your credit history. If there are any blemishes on your credit scores, wait to improve them, and then apply again.
