Easy Ways to Apply for a Credit Card
Credit cards are important in helping consumers and businesses to establish their credit score. With a good credit score, you will have more opportunities to you in terms of loans, credit lines, mortgages, and more. A solid credit reputation means a lot for individuals and businesses. As a result, you will want to know the easiest ways to apply for credit cards.
Become Familiar with Credit Scores and What They Mean
It’s important to understand what credit scores mean in terms of their range. According to the experts at SoFi, they can be distinguished by FICO or VantageScore credit scores. Depending on the range of your credit, banks and lenders could be more willing to extend loans to you, or they would be inclined to avoid doing that. Bad credit ranges from a credit score of 300 to 629. Average credit scores range from 630 to 689. Good credit ranges from 690 to 719, and excellent credit scores are 720 and higher.
If you’re seeking a new credit card, most require good or excellent credit. If your credit isn’t at least good, you will want to work on improving your score to up your chances of qualifying. However, there are other cards available for people with bad to average credit, such as secured cards.
Check Your Credit Score
To know whether or not you qualify for a new credit card, you need to know your credit score. Use a credit bureau to get your credit report. Equifax, Experian, and TransUnion should all allow you to get one copy of your report annually for free.
Credit scores are made up of certain factors such as your credit accounts, credit mix, length of credit, payment history, and outstanding balances. Once you have a copy of your report, you should thoroughly check it to ensure that it’s accurate. In case there are any errors, report them immediately so they can be fixed.
Improve Your Credit if Necessary
There are some smart ways to improve your credit score. Make all your payments on time, avoid accruing new debt and always keep your credit utilization ratio within 30% or less. If your balances are too high, it can affect your ability to qualify for new credit. Pay more than just the minimum required amount. Paying off your purchases more than once per month can help you keep them low.
Avoid Applying for the First Offer
Signing up for the first credit card offer you see can lead to a hard inquiry on your credit, a rejection, and your credit score dipping even further. Knowing all the criteria for specific credit cards ahead of time is wise. It’s also better to pre-qualify for a new card. If necessary, you can get a card for individuals with bad credit, which can allow you to work your way up to a better card with rewards.
When you do apply for any credit cards, always be honest when entering your information. Don’t lie about your income. If you have a full-time job and earn income outside of that, be sure to include it in your application. At the same time, don’t over-exaggerate your income, either. False information can result in charges of fraud. Even if you are unemployed, you can still qualify for a credit card.
These tips can help you apply for a credit card. With a few smart tips, you can improve your credit score and qualify.