Sometimes getting yourself approved for a credit card can be a little harder. Especially with the economy witnessing a global downturn, credit card issuers have become much more stringent with their approval policies. Even with a decent annual income, you might find it harder to get the desired credit card limit.
In case you have also had to experience any such difficulties getting, here’s a list of five expert tips to get your credit card approved much faster. To find out more, read on.
1. Employment and a Regular Source of Income
One of the main criteria that you need to fulfil to get approved for a credit card is to have a regular and stable source of income. The reason why being employed matters when it comes to meeting credit card eligibility is that to trust you with credit, the lender needs to have some kind of proof that you will be able to make the payments on time. You need to understand how credit cards work, to get more clarity on credit card limits, fees, and other aspects.
2. Good Credit Score
Having a high credit score also plays a big role in getting approved for a credit card. Your credit rating is another indicator that the lenders take into consideration when offering you a credit card. It reflects on your creditworthiness, as it takes into account your past repayment behavior, defaults (if any), and reliance on credit to make purchases. Some factors that can impact your credit score include paying credit card EMIs on time. When you do that, your credit score remains intact or improves. You can be eligible for a lifetime-free credit card with a proper credit score.
3. Check up on Your Credit Report and Rectify It
In case your CIBIL score does not show a favourable picture of your credit, it can be very hard to get your credit card approved. Bad debts, spending up to your credit card limit, multiple loans, applying for multiple cards, etc. are the factors usually responsible for a poor score. In case of a debt spiral on your previous card, coordinating with your bank and drawing EMIs on your credit card is a nice way to rectify things. Clearing your due balances, paying bills on time, and developing a better understanding of how credit cards work will help you avoid such circumstances in the future.
4. Avoid Taking on Too Much Debt at One Time
Taking too many loans at one time can complicate your finances and take your credit score down. Therefore, it is advised to not have too much debt on your account at one time. You must finish off one loan before you apply for any more credit to improve your chances of getting a credit card.
5. Set Reminders and Pay Your Bills on time
Setting up automatic bill payments from your bank accounts can be a nice way to avoid any lapses in payments. Setting reminders is also another good way of doing the same thing. This will improve your credit score.
Getting your credit card approved can become a task sometimes. However, it’s not all that difficult if you know a few simple tricks. Also, you should think beyond approval and research what kind of credit card will be best for you. For instance, it’s important to consider factors such as reward points, lifetime free credit cards facility and competitive rates of interest, and more.
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