So, what are the steps to take in order to know you will be approved for a credit card. There are so many types of credit cards available, what type of card should you realistically expect to attain. There are commercials daily soliciting the “Reward” credit cards. Those sound appealing. Are they right for you? Every person has different fingerprints just as every person’s credit report is different. So, the answer could be yes, you can feel comfortable applying for that rewards card. Or, the answer could be… not quite yet.
In my opinion, every one of us should be keeping a close eye on our credit reports. But really, this should always be the first step when considering to apply for a credit card. I recommend having a credit monitoring service that allows you access to your 3-bureau report monthly. This not only helps keep you up to date monthly on your credit health, but also gives you fraud alerts, and fraud protection plans. We can all legally obtain one time per year a copy of your 3-bureau report from annualcreditreport.com. But as rapidly as things can go south on a credit report, it is better to have monthly access for any timely responses that may need to be resolved.
So what card is right for you?
The reward cards that offer the bonus, cash back, travel miles, etc. are great! Problem is, you must have good to very good credit scores. According to the Experian web site, “good” credit the range of 670-739 and “very good” 740-799. If your FICO score isn’t falling this range, chances are not good for you getting these types of cards. If your credit scores aren’t to that level, there are plenty of choices for other credit cards. Ultimately, and if used properly, credit cards are just tools to strengthen one’s credit profile. So, choose what type of card will fit you best. What if you can’t even get a credit card? What if you are starting out and trying to establish credit? There are plenty of resources out there for you as well. You may have to start with secured credit cards. That’s not the most ideal idea for many of us. But it works! Remember, you are trying to establish credit and strengthen your overall credit profile. We have to start somewhere. I recommend visiting this site for many options on how to establish credit with credit cards, loans, etc. (freecredithub.com)
Tips on preparation before applying for a credit card.
As stated above, get a credit monitoring service. I’ve many clients that are frustrated because they tell me they pay off their credit card every month without fail, on time, and I am responsible card holder. But there is always a balance. And while everything they are saying to me is factual, they are paying when the statement is due. But they aren’t paying it before the Credit Card Companies are reporting their data to the 3 Bureaus. There is a specific date for every credit card company to send their “tickets” or data to the bureaus. It’s different for every company. So, it’s important to know that date and pay the balance 5-7 days before the data is sent. Otherwise, you will always have a running balance that will factor into the decision to approve for another credit card or be denied. You can call every one of your card companies and ask for that date. But I have found, with this credit monitoring service, these dates are actually provided with your membership. Saves you time and effort, plus gives you step-by-step instructions on how to maintain a very healthy credit report. It’s worth a look. CreditArmor.com.
Income and income sources.
Many, while applying for credit cards, simply put in their annual salary where the application ask you to state it. And why not? Seem pretty logical. There is, however, a better way to state your overall income and maybe have a better chance at approval. The Credit Card Responsibility and Disclosure Act (CARD) allows the applicant to claim the total household income. If your spouse or your partner share each other’s income in household expense, and you have access to that income, by all means, use that to your advantage when submitting an application for a credit card. Any and all income streams should be used to determine what you will put in as your annual income.
I was denied… now what?
Almost all credit card providers have a phone number you can call and ask for reconsideration. There was some sort of initial ‘red flag” that caused the denial. Probably not even by a human being. Most likely some sort of computer program that got you kicked from consideration. It never hurts to actually speak to a representative and see why you were denied and be able to argue your case as to why you are worthy to be a card member with them.
