These days having a credit card can be very useful and almost a necessity at times, especially if you want to get cash now. If you are interested in getting a new credit card, there are quite a few things you can do to improve your chances of approval. There are certain things that lenders look for in credit card applicants that can help you get your new plastic. These tips can go a long way towards helping you establish your new line of credit, which can boost your overall score.
- Apply for Only One Card at a Time
You should only apply for one credit card at a time, because otherwise you could actually hurt your credit. Each time you submit an application, the lender runs a credit check, which counts as a hard inquiry. Don’t apply for more than one card within a two week period. It might seem silly, but it will help you preserve your rating.
- Look at Your Credit Report
Before you start applying for credit cards, take a very close look at your credit report to check for errors. Even one small error on your report could prevent you from getting the card you want. These mistakes do happen, which is all the more reason to stay on top of your credit report. This is something you should do at least once every year. Make sure to report any of these mistakes to the corresponding agency so you can have them removed.
- Find Cards that Match Your Needs
Some credit cards are going to be better than others for you, so it is important to spend some time doing your research. If you are a student, you might want to get a credit card that is specifically for college students. You will find that certain cards can help you save on interest while others are more about getting rewards. It is crucial that you learn the details of each card so you know what they are all about before applying.
- Don’t Take on Any New Debt
When you are in the process of applying for a new credit card, you should refrain from taking on any fresh debt. This means getting a loan of any kind, at least for the moment. Most lenders don’t want to give a new credit card to someone who has a significant amount of active debt.
- Get a Co-Signer
If you think you might have problems with getting approved for a credit card, you can always ask someone you know to be a co-signer. This person will essentially be responsible for handling your debt if you cannot pay for whatever reason. Keep in mind that the co-signer must have good credit, adequate income and other qualifications. If you can locate someone to be your co-signer, it will almost certainly boost your chances of approval.
- Apply with a Credit Union
Some credit unions are more lax about approving credit card applications, so this is something you should keep in mind. Take some time to find a good credit union in your area to apply with. There are a lot of these financial institutions, so you don’t want to choose just any of them. You also need to look at the specific terms of the loan very closely. Just because you can get approved for a credit card doesn’t necessarily mean it’s a good overall deal.
- Be Honest on Your Application
You never want to lie about anything on a credit card application, because doing so just guarantees that you will get rejected. You’ll have a very hard time getting a credit card if you lie about any personal or financial details on your application. Some people think they can get away with fudging the truth a bit, but it rarely works in their favor.
- Don’t Cancel Any Current Credit Cards
If you already have one or more credit cards, do not cancel any of them while applying for a new one. Believe it or not, cancelling a card can hurt your credit a little bit. It can also reduce your chances of being approved for a new card. Wait until you have been approved to do this if you must.
When you are gearing up to get a new credit card, there are quite a few things that you will need to keep in mind. These tips can really help you with getting what you need in the best possible way. With all of the potential mistakes that you can make when going about getting a new card, it is crucial to follow these tips. In the end you will be glad you decided to do this because of all the time and aggravation you will save yourself in the end.