Applying for a new credit card is simple, but waiting for approval is a scary part. It just feels like taking an exam and waiting for a result. If you are a beginner and applying for a credit card, there are lots of things that you should know, which helps gives a higher chance to get approved. Using the right approval method also provides you the best credit limit, so you need to be realistic with your expectation. Whether you are currently thinking about applying or in the future, first, here learn how to apply for a credit card in the beginning so your credit card will get approved by the issuer.
You just have to provide your personal information along with your financial documents to apply for a credit card in the beginning. But here’s a tricky part which you can use for a higher chance of getting your credit card application approved. These approval techniques and requirements work perfectly in the past, and still, you can implement them nowadays.
Okay, here’s some information that you need to complete in your credit card application and for the approval.
Basic Requirements to Get a Credit Card
Before you apply for a credit card, there are some basic requirements which you should know to get a credit card. Most of the time, some people or beginners didn’t know the requirements and got rejected. So it’s better to first examine the requirement than worrying about the rejection.
You Must be 21 Years Old or 18 (Either You Have Parents Permission or a Verifiable Source of Income)
First, the most basic requirement to get a credit card is a person’s age. The credit card act of 2009 has designed certain criteria or age limit for applying for a credit card. That’s because, in the past, some of the bank or card issuer advertise credit cards to young adults who don’t even have a source of income to repay the obligation.
So, if you are 21, you can apply for a credit card, but you have to provide the documentation, such as a personal source of income. However, if you are 18 or below that, you have to get permission from your parents or request a person who can pay your bill.
If you meet the above following age criteria, you can easily apply for the credit card.
Must Have a Source of Income
As I already said that you must have a source of income to apply for the credit card. No one gives a credit card to the person who doesn’t have an income to repay the debt. So, whenever you apply for the new credit card, a bank or a card issuer will ask for your estimated monthly income.
A person doesn’t have to report all the income; they just have to show the available income in their application that they can repay the amount back later. But do not lie about your income; sometimes people show the maximum income even though they have an average income and get in trouble, such as losing a credit card. Your income report is just used as a confirmation that you can pay the debt; it doesn’t mean that a card issuer will come after your income if you fail to pay the debt.
Your source of income plays a vital role in whether the bank or card issuer will accept your application or not. Likewise, your credit limit also set according to your income and credit history. In some cases, the bank may also ask the proof of your income, such as pay stub or W-2.
Besides, if you are college students, then you might have a little source of income. So, if you are applying for a credit card as a student, then check out the best credit cards for students of 2020.
Needed a Social Security Number
In most cases, you may need an SSN (Social Security Number) to apply for a credit card. It depends on the credit card company whether they will ask for your SSN or not. However, there are also some credit cards out there that don’t require the SSN. So, it’s your decision whether you want SSN credit card or without the SSN, you choose.
Have a Good Credit History
Another basic approval requirement for the credit card is your credit history. Most of the credit card issuer requires a good credit score of about 700 to 800, and some cards can accept the average credit score. It depends on the credit card nature; however, if you have very poor credit, then you must build your credit for the higher chance of approval.
Building a good credit history shows that you are a responsible cardholder, which helps not only for approval but also gives you lots of benefits for a good financial.
For beginners, it may not necessary to have a good credit history but it doesn’t mean that you ignore your credit score. It will help you a lot in the coming future.
How to Apply for Credit Card in Beginning and Get Approved
After reading the basic requirements of the credit card, we now head through the important things which we should know to get approved.
Check Your Credit Scores
Your credit score is the most important factor in a credit card, which makes the issuer whether to approve your application or not. If you know your credit score, then you can determine what types of cards you should apply. Let’s say if you have average credit, then you may not want to apply for a card who need an excellent credit score for approval. In that case, you might be thinking, why didn’t I improve my credit score, right?
According to the Consumer Financial Protection Bureau, a person must review the credit reports, whether they have any errors or not, such as an old collection of account pay dropped off in your report. Any kinds of error you got in your reports, try to fix them at first, and then only apply for the credit card. Sometimes these errors prevent your card application from being approved.
Determine What Type of Card You Need
If it’s your first credit card, then it’s a good idea that you aim for the low or no annual fees card and a low-interest rate. Why? Well, because you can learn the working process of the credit card, plus it will be a lot easier for you to make a bill payment on time. If you open the account for a long time with no annual fee, then your credit history will also be better. If you choose the higher card at the beginning that has a high annual fee and interest, then there may be a higher chance of increasing your debt. In addition, it also will get harder for your card to get approved.
Besides, if you have poor credit or limited credit history, then it might be difficult to get approved. Do not hurry to apply for the card, first know what strength you have which helps you to get approved. Besides, if you don’t have a credit history at all, look for a secured credit card, which only requires a cash deposit.
In addition, look for the moderate and no credit card for the first time, which helps your application gets approved. Looking for a card that needs excellent credit, lower the chance of getting approved.
Know Where You Should Go to Get Your First Credit Card
In the beginning, many people don’t know where to go to apply for the credit card. There is always the right place to get the right credit card. So, if you are responsible for checking and saving account, then try to apply from your bank. Your existing bank relation can lead to a higher chance of your application to get approved, only if you have handled your account properly. Face to face interaction with a representative is helpful in the approval process.
Likewise, you can also apply for the credit card via online. But there’s a problem – all your application is viewed online, and if you made a mistake in your application, you have to do it from the beginning. However, it doesn’t mean that your application will get rejected; it’s a rare condition, so there’s only a possibility.
Retails and department stores are other more favorable options to apply for the credit card and get approved. However, they charge high-interest rates, which are expensive to carry a monthly balance. In addition, these cards are not versatile – this means you can only use them in the stores. But you can get a discount and rewards if you use them in the department stores for making purchases. It also helps you to build a good credit history so that you can apply for another card within a month.
Check to See If You Are Prequalified
You can also check whether you are prequalified or not for the credit card. Some of the bank likes, Capital and Chase, allows you to check to prequalify for a credit card. For that, you have to submit your personal information along with your SSN (Social Security Number). After that, they will make a soft inquiry or check your details. Besides, during the inquiry process, your credit score will not get affected because it’s a small inquiry.
If you are prequalified, then this means you met all the lender requirements. But this doesn’t mean that you are qualified for a credit card, you still need to apply to get fully approved.
Get Help From Someone
In the beginning, we usually don’t know everything about the applying process of a credit card. In that case, our parents and relatives come in handy because they know well than us about the credit card. Besides, if you co-sign with someone else and you make any mistake during the applying process, then both (you and co-sign) of your credit will be affected. But it’s also a good start with your credit because you can pay your bills on time – which helps you to build a good credit history.
So whenever you apply for a credit card, in the beginning, get help from someone if you live alone or still need more information besides the techniques which we have mentioned above.
What If the Application Got Denied?
Well, first of all, don’t get despair if your application of credit card gets rejected. For the first time, many people have been rejected, and many of them also get accepted for other cards. Even the people with well-established credit history got rejected. It’s not necessary; you need to be accepted in the first attempt.
Second, read the mail regarding the reason for your rejection. You can review the mistakes which help for the next time when you are ready to apply.
Third, this time apply for the different cards, which is a secured credit card.
Frequently Asked Questions
In this section, we listed some of the most asked questions about applying for a credit card for the first time.
How Much Income Do You Need to Get a Credit Card?
Well, it depends on the credit card as all variety of credit cards have their own requirements. But if you are applying for a first credit card, then you must have a source of income; otherwise, a credit card issuer won’t qualify your approval. It’s a simple thing how you can pay back your debt, which you have borrowed from the credit card company, right?
If you are a single person who has an annual income of more than $31,000, you can easily get approved for a credit card. Likewise, if you are a household person who earns an annual income of $61,000, that’s also good for the credit card. However, your income does matter for the approval, but your credit history also plays an important role.
Do I Need to Open a Bank Account to Get a Credit Card?
Let’s say if you are applying for the credit card, then having a bank account can makes it a lot easier for you to get approved. However, it’s not completely required to have a bank account because some credit card issuers may not need a bank account for a new credit card.
But, you must have a source of income to show that you can pay your credit card bills.
Can You Lie About Income For a Credit Card?
No, it would be best if you never lie about your income at any cost. If you lie about your income on your credit card application or state higher income than the actual, it will cost you later. If the credit card issuer finds out your lie, then your account will get closed. In even the worst scenario, you may have to pay higher fines and even spending time in prison.
So, don’t ever lie about your income when applying for a new credit card.
Can I Apply For Credit Card Online?
Yes, you can definitely apply for a credit card online as it is the fastest and a convenient way. You can save lots of time when you apply online because you can apply from anywhere around the world and anytime. But before that, you should know from where you are applying, like though a bank, particular credit card store, or a card company. Make clear about the source, and then it will be more easier for you to apply.
Getting approved for the credit card is a good thing, but getting denied will hurt. But don’t worry, if your application is not approved. You can always try for the next time, that’s why the above- mentioned process is important before you apply for the next one.
Choose the card wisely according to your current available resource. And the most important thing, provide accurate information during your application process.
Do the above techniques helpful for you when you apply for a credit card in the beginning? Throw your answers in the comment section down below.
Thanks for reading our article.