5 Tips: How to Get Approved for a Credit Card

Getting approved for a credit card is easy for some people. But for others, the approval process can be fraught with roadblocks. This article will explain what you need to know if:

• You’re applying for your first card, you need to rebuild your credit, or you have one or more cards and want to obtain another.
• You want to learn more about how to apply and improve your chances of being approved.
• You’ve faced challenges being approved, or you’ve applied and been denied.

Before you apply, you should educate yourself about your options so you can choose a card that fits your situation and for which you’re likely to be approved.

Cards come with different rates, fees, and features. Some are designed for people with excellent credit; others target consumers with middle-of-the-pack credit scores, and still, others are intended for people who’ve had credit problems.

You can complete an application for a credit card online, in-person at a bank or credit union, or by calling the card issuer. You’ll need to provide your name, address, and other personal and financial information. If you don’t have a Social Security number, you may be able to use another form of identification.

Being approved for a card depends primarily on your credit score and your monthly income compared with your monthly minimum debt payments.

Your credit score is a three-digit number that represents the information in your credit reports. The most commonly used score is the FICO, developed by Fair Isaac, Corp.

There’s no one score that you have to have to get credit card approval. As a general guideline, a score of 800 or higher is considered exceptional; 740 to 799 is considered excellent credit; 670 to 739 is considered good, and 580 to 669 is considered fair credit. A score of 579 or lower is considered poor.

If you’ve never used credit or you’ve had problems with credit, your score could be low or even zero. In that case, you may want to apply for a starter, student, or secured card before you apply for a more sophisticated one.

See Cards For: No/Limited Credit (0 Score) | Bad Credit (300 – 579) | Fair Credit (580-669) | Good Credit (670-739) | Excellent Credit (740+)

Cards for No/Limited Credit

These types of cards tend to have lower limits, higher annual percentage rates (APRs), and fewer benefits. The advantage is that they can help you build your credit so you can be approved for other cards in the future. A low limit can help you learn to use credit responsibly and not incur more debt than you can manage.

 

Cards for Bad Credit

A card for bad credit may sound like a punishment, but some cards in this category are designed to help you rebuild your credit so you can qualify for more preferred cards. You won’t get a high credit limit, low APR, or awesome rewards and benefits, but you will get a chance to make your payment on time and beef up your credit score.

 

Cards for Fair Credit

Fair is neither good nor bad – it’s right in the middle – meaning the cards you’re likely to qualify for are also “right in the middle” in terms of APRs and rewards offered. Use the card responsibly to boost your credit score and eventually graduate to a card for good or excellent credit.

 

Cards for Good Credit

A good credit score, generally 670 or higher, will get you approved for many great credit cards. Whether you want travel rewards, cash back, or a low APR, you’ll have your pick among some of the best offers.

 

Cards for Excellent Credit

An excellent credit score will allow you to choose among the very best card offers available, including exclusive cards with expensive annual fees. These come with top-tier rewards, special cardholder privileges, and low APRs for those who qualify.

Discover it® Cash Back

at Discover Card'ssecure website

EXCELLENT CREDIT RATING

★★★★★

4.9

OVERALL RATING

4.9/5.0

Our Review »

• INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
• Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically.
• Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
• Every $1 you earn in cash back is $1 you can redeem.
• Get a 0% intro APR for 15 months on purchases. Then 16.49% to 27.49% Standard Variable Purchase APR applies, based on credit worthiness.
• No annual fee.

• See application, terms and details.

See Rates & Fees

Intro (Purchases)	Intro (Transfers)	Regular APR	Annual Fee	Credit Needed
0% Intro APR for 15 months	0% Intro APR for 15 months	16.49% - 27.49% Variable APR	$0	Excellent/Good

Discover it® Balance Transfer

at Discover Card'ssecure website

EXCELLENT CREDIT RATING

★★★★★

4.9

OVERALL RATING

4.9/5.0

Our Review »

• INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
• Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically.
• Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
• Every $1 you earn in cash back is $1 you can redeem.
• No annual fee.
• Click through to Discover’s website to see terms and conditions.

• See application, terms and details.

See Rates & Fees

Intro (Purchases)	Intro (Transfers)	Regular APR	Annual Fee	Credit Needed
0% Intro APR for 6 months	0% Intro APR for 18 months	16.49% - 27.49% Variable APR	$0	Excellent/Good

Chase Freedom Unlimited®

at Chase'ssecure website

EXCELLENT CREDIT RATING

★★★★★

4.9

OVERALL RATING

4.9/5.0

Our Review »

• INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
• Enjoy 6.5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
• After your first year or $20,000 spent, enjoy 5% cash back on Chase travel purchased through Ultimate Rewards®, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
• No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
• Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.49% - 28.24%.
• No annual fee - You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card

• See application, terms and details.

Intro (Purchases)	Intro (Transfers)	Regular APR	Annual Fee	Credit Needed
0% Intro APR on Purchases 15 months	0% Intro APR on Balance Transfers 15 months	19.49% - 28.24% Variable	$0	Good/Excellent

+ See More Cards for Excellent Credit

If you don’t know your score, you can find out online. Some websites offer scores free. Others charge a fee. Before you use a specific website, you should read the fine print because some websites use your personal information to market financial products to you or share your personal information with other companies for their marketing purposes.

To understand your score, it may be helpful to look at your credit reports from the three main credit bureaus, Equifax, Experian, and TransUnion. Your reports are important because the information they contain is used to create your scores.

You can get your reports free from AnnualCreditReport.com. If you find any errors in your reports, notify the credit bureau and ask to have the error corrected. An accurate report may improve your scores.

The most important factor in your score is whether you make your payments on time. Setting up alerts and putting reminders on your calendar can help you remember when your payments are due.

Other factors that affect your score include the types of credit you use, your credit utilization rate, and how long you have used credit. Retail store cards, auto loans, and other types of debt can also help you build your credit history.

The best way to improve your score is to make all your payments on time.

You’ll be asked to disclose your monthly income when you apply for a card. You don’t have to have a high income or full-time job, but you usually will need to have at least some steady income from somewhere or someone.

Card issuers have different rules to determine what type of income you can use to qualify, but there are some general guidelines:

• You must be at least 18 years old to apply for a card on your own. If you’re younger than that, you can become an authorized user on someone else’s card to establish your own credit history. That someone else may be your mom, dad, or another family member.
• If you’re 18, 19, or 20, you can apply for a card on your own. But to be approved, you’ll need to show that you have a reliable monthly income, or you’ll need a cosigner who has good credit and is willing to be responsible for your card debt along with you.
• You may be able to use financial aid, such as a scholarship, grant, stipend, or work-study, as income to qualify if you receive the income on a regular basis (i.e., not just once) and you can use the funds to pay for daily living expenses (i.e., not just tuition).
• If you’re 21 or older, you can use your own income or your spouse’s, partner’s, or parent’s income to apply if you have access to that income, such as if it’s deposited into a shared account, or a portion of it is transferred to you (e.g., as an allowance) every month. Student loans are debt and should not be used as income to qualify for a card.

By the way, you’ll never be too old to be approved for a card. That’s because lenders aren’t legally allowed to discriminate against you on the basis of your age once you’re at least 21.

When you apply for a card, the income you earn isn’t as important as your ability to repay what you charge on your card and pay back any other debt you have.

To figure out whether you have enough income to handle your debt, card issuers look at your debt-to-income (DTI) ratio, which compares your monthly income to your monthly minimum debt payments. There’s no hard-and-fast DTI ratio to be approved, but all else being equal, a lower DTI ratio is better than a higher DTI ratio.

You will need more income, less debt, or both to lower your DTI ratio.

 

Card issuers have different standards for DTI so if you don’t qualify for one card, you may qualify for another, or you may qualify for the card you want, but with a lower limit.

You shouldn’t lie about your income when you apply for a card because it’s illegal, and you could get approved with a limit that’s too high for you. That could snowball into a number of financial problems, including too much debt, bad credit, or even bankruptcy.

Some card issuers will consider such factors as your employment, student status, and checking account balance when you apply for a card.

Some cards are designed for people who have a short — or no — credit history. These cards are sometimes called starter or no-credit cards.

Starter cards are great options to help you learn to manage credit responsibly and eventually graduate to cards with richer rewards and lower APRs.

Starter Cards: If you’ve had problems with credit, a true starter card — designed for people who have a limited credit history — may not be the best fit for you. But if you’re young, recently divorced, or new to credit for another reason, a starter could increase your chances of approval. The card below is a great option for anyone looking to build credit.

Student Cards:

If you’re a student, you’re in luck because there are a lot of cards designed for people like you. Student cards may have a lower credit limit and most generally come with a few perks and benefits. Consider a student card training for the real world. Paying your credit card bill on time and in full every month will help build your credit history so you can qualify for cards with higher limits and more attractive benefits. See our top student selection below.

Secured Cards:

If you don’t have much experience with credit or you’ve had some problems with credit, another option is a secured card. This type of card requires an upfront deposit, which may be refunded once you’ve established a good payment record or if you close your account without an outstanding balance. Our top secured card has no annual fee and the issuer will review your account for credit limit increases after you make five consecutive on-time payments.

It’s easier to be approved for a secured card because if you don’t make your payment, your card company can use all or part of your deposit for that purpose. If that happens, that portion of your deposit will not be refunded even if you close your account.

A credit card is a form of debt. Each time you use your card to make a purchase, you’re borrowing that amount of money from the card issuer. The maximum you’re allowed to owe at any one time is known as your credit limit.

Each month, you receive a statement that shows how much you owe and a due date by which you must make a minimum payment. If you pay off your card balance every month, you’ll never have to pay any interest. If you carry over a balance, you’ll be charged interest for that amount and any new purchases you make.

Cards are a type of revolving debt. Revolving means that, if you hit your limit and then pay off all or part of the amount you owe, you can borrow that amount again.

You don’t have to have a credit card, but there are good reasons to get one — or a few — if you qualify:

• Cards are more convenient than cash or checks.
• If your card is lost or stolen, your losses will be limited. If cash is lost or stolen, it’s gone.
• Cards can help you track your expenses.
• Cards are free to obtain and use if you avoid fees and pay your full balance every month.
• Cards allow you to make rental car and hotel reservations and shop online.
• Many cards give you rewards, such as cash back, travel benefits, or points toward merchandise purchases.
• Cards can help you build your credit history so you can qualify for other types of loans with lower rates and better terms later.

Read on for the advantages of having multiple credit cards.

Once you’ve been approved for one or more cards, you may want to get additional cards.

More cards could let you earn signup bonuses and give you access to other perks like cash back, air miles, and gifts. You may also be able to transfer a balance and get a 0% introductory APR offer or upgrade from a secured card to an unsecured card. Additionally, having more credit cards in good standing can lead to higher credit limits.

You may also want more cards in case your favorites are lost, stolen or temporarily unusable due to fraud on your account. Or you may want multiple cards for different purposes, such as online shopping, travel or dining. Some cards offer company-specific rewards that may appeal to you. If you own a business or you have a side gig, you might want to have business cards as well as personal cards.

To get approved for additional credit cards, you’ll need to use your credit responsibly, make your payments on time to secure a high credit score, and keep your card utilization relatively low. Now that you know how to get approved, you can shop and apply for the cards you want with confidence.