The secrets of successful credit card application no one has ever told you before

The average American adult carries about three credit cards on the person at a time. How many credit cards are you currently using? Are you about to apply for your first credit card? Do you already have one, but you want another with better rewards and cash back offers? We have often seen people shy away from applying for new credit cards due to the apparently complicated application process. It is true. If you need a credit card within a short deadline, you might find the process painstakingly detailed and frustrating.

Applicants benefit from meeting the card issuer’s minimum criteria for qualification. Satisfying the creditworthiness involves a few steps, which include the following –

i.                    You need to show your credit payments record for the last two or more years. That should bear proof of regular payments on your existing credit accounts.
ii.                  You should be able to provide proof of a stable income. There are a few companies that offer secure credit cards as well, but always get one after learning about the risks of the process.
iii.                An impressive credit (FICO) score that meets the vendor's requirement. The acceptable score varies from one bank or company to another.
Fewer debts and more number of total payments on the existing credit accounts make it likely for you to get a credit card within the anticipated period.

What can help you get a low-interest, high reward personal credit card?

Low-interest credit cards have always been the talk of the town. Only a few people have seen them in reality. Who are these legends that hold the precious low-interest cards? What makes them eligible to get one of these? How are their financial profiles different from yours? These are a few questions that can help you find the answers to your quest.
You will need a good credit score. “Good" is a general term here since FICO usually categorizes credit scores as excellent, good, fair and poor. The requirement of each issuer is distinct, and your score will determine which issuer is more suitable for the approach. Credit scores above 750 and above usually qualify as “excellent” in the purview of almost all credit card companies. People are more likely to have a credit score between 749 and 700. That is the range of “Good” credit score as per the leading vendors, and the chance of you getting a new card with such a score is above average. The “Fair”FICO scores range between 699 and 600, and your chances of getting a new card diminish if you fall under this category. The eponymous truth is low interest credit cards require good credit history, and there is no issuer, who is ready to overlook your personal finances to grant you a new revolving line of credit.

How to increase chances of credit card approval with poor credit scores?

Not all applicants can have excellent FICO scores, but you can significantly improveyour chances of getting a new credit card with low-interest rates by applying with a company that indicates above-average chances of approval. For example – a company can have a fundamental credit score requirement of 650, and it will not help your case if you apply to this vendor with a personal FICO score of 630. Usually, negotiations do not help in these situations. You should move on and look for a company that issues credit cards to applicants with a score below 630.

Do not make financial decisions emotionally

Up until 2015, the rejection rate for credit card applications was 13%. The numbers have gone up since then. The big banks and financial institutions contribute significantly to it. It is true that rejection rate for all kinds of loans has increased over the last decade. There is no reason you should take it as a personal insult. Research shows that people, who view the rejections emotionally and start applying to other institutions, may face a higher chance of denial in the near future. Applying repeatedly for credit and receiving negative feedbacks can harm credit scores further. That is the last thing you need on your credit report since the primary reason for the rejection is insufficient credit score or an incomplete record of personal debts.

You need not feel bad

The supreme consumers with a more-than-perfect credit score receive the best low-interest credit card offers. They have at least ten years of regular debt payment on a mélange of credit accounts including student loans, auto loans, home equity loans, home mortgage and other credit cards. We have seen banks rejecting applicants, who have records of over five years of responsible credit card usage. Banks and other financial institutions want a longer track record since that ensures better chances of timely payment from the holder.


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