4 Simple Secrets to Credit Card Approval

103 105
Credit card approval is not difficult if you follow the right approach and fulfill the basic guidelines prescribed by the credit card company.
1.
Build a Good Credit Score
One of the fundamental rules to achieving an easy approval is to have a good credit.
You can check your credit rating through credit reporting agencies such as Veda Advantage and Dun & Bradstreet.
These agencies usually provide a credit report free of charge.
If your credit score is below par, typically most companies may disapprove your application for an unsecured credit card.
Therefore, re-build your credit and do not apply for a credit card in haste.
This can be done within a matter of months, as your credit rating will improve if you start paying your bills and loan installments diligently on time.
It is very important to ensure that your recent credit related transactions do not reflect any payment delays or defaults.
These companies may look at your recent credit history more closely than your transactions in the distant past.
2.
Consolidate and Re-finance Old Debts
One of the ways to improve your financial image is to make your debts as current as possible.
If you have several small old debts running at varying rates of interest, try to consolidate them into a single debt at a competitive interest rate.
This will not only bring down your overall interest costs, but will also present a healthier financial picture.
If debt consolidation is not possible, evaluate the cost of your current major debts and look at the possibility of debt re-financing.
If your debts are re-financed at cheapest possible interest rates, it helps to make a healthier balance sheet and paves the way for your approval.
3.
Fill-up the The Application Carefully
Whether you are applying for a credit card online, or through a paper application, it is important to read the application carefully and fill it up in entirety.
Incomplete applications are likely to get rejected automatically, even if you may be strongly eligible.
Provide true information in the application to the best of your knowledge.
False information is an illegal shortcut that can lead only to trouble at any point of time.
If there is a requirement for any documents to accompany the application, make sure to prepare the documentation properly and include with the application.
4.
Do Not Re-apply Repeatedly
In case your application gets rejected by a particular banking institution or company, it may not be a good idea to re-apply many times repeatedly within a short span of time.
This only reflects you in poor light and gives the impression that you are desperate for credit.
A better approach would be to evaluate the reasons of your rejection and address those weaknesses.
If your credit score has fallen marginally short, it is better to wait for a while and make timely payments of all dues to improve your score.
If some financial re-organization needs to be done, it is better to accomplish it before re-applying for a card with a renewed financial position.
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time

Leave A Reply

Your email address will not be published.