Applying for a credit card is not always easy. Before clicking the “register now” button, you should consider various factors that may affect their ability to approve new accounts. When the bank processes the application, things such as credit value and income play an important role.
How to get a credit card
There are four main ways to apply for a credit card: online, by phone, at a branch, and by direct mail delivery. In terms of the benefits you receive, there is almost no difference between the two methods.
Depending on what the issuer presents to you, a targeted offer may be the most meaningful. For example, some people receive offers about American Express Platinum Card® via email and receive a welcome bonus for 100,000 members. However, if you register online, after purchasing $5,000 in the first 6 months, the card will only earn 75,000 Membership Rewards® points. The annual fee for this card is also $550 (see fees). If you receive a specific offer via email, it is best to check the best online deals.
The advantage of requesting a credit card at the bank’s physical location is that the banker can help you approve your order. If you have previously had a relationship with a bank, they can contact the re-review hotline on your behalf and explain why you need to obtain bank card approval. This can make a difference, especially for consumers with poor credit ratings or very little credit history.
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What do you need to get credit card approval?
To apply for most credit cards, you must have a credit score (sometimes called a FICO score), source of income, monetary assets, or a combination of the three. Generally, applicants must also be 21 years of age or older.
People between the ages of 18 and 21 can still apply, but they must prove their financial independence, or their parents must sign the application form.
FICO score is the main factor in determining whether you are eligible for a credit card. Before applying for a new card, you should check your scores to narrow your choices. If you apply for a credit card outside the scope of FICO, not only will you be rejected, but your credit score will also be affected.
• The best credit cards of quality credit cards
• Best credit card with medium/fair credit
• The best credit card for bad credit
• The best credit card for students
Guarantees and student credit cards have no credit rating requirements and are usually the easiest to obtain. Both types of credit cards still require you to have a source of income or savings. Since the federal government requires banks to comply with this regulation, it cannot circumvent this regulation.
Before issuing a new line of credit, financial institutions must verify that the customer can pay at least the minimum amount; therefore, a large amount of income or savings is required.
Guaranteed credit cards will go further and require consumers to make deposits. In most cases, the credit line issued will be equal to the deposit amount. If the cardholder cannot repay the debt, the deposit is cancelled and his account is closed.
On the other hand, if the cardholder shows financially responsible behaviour, such as paying on time, many of these cards can eventually be upgraded to regular credit cards and the deposit can be refunded.
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What to do if the credit card is declined: re-review the dedicated line
Even if you were not initially approved to use a particular credit card, you can try to reverse the decision. To do this, you must call one of the bank’s credit card department reconsideration lines. There, you will talk to an agent to find out why the specific card was refused and whether any steps can be taken to change the decision.
The table below lists some of the largest credit card issuers in the United States and their phone numbers for your reconsideration. They tend to change frequently. If you dial one of the following numbers and it is unavailable, you can dial the delivery application number and request that it be transferred to the identification department.
|American Express||(866) 314-0237|
|Bank of America||(866) 811-4108|
|Capital One||(800) 625-7866|
|US Bank||(800) 947-1444|
|Wells Fargo||(866) 412-5956|
Please keep in mind that your credit score will be temporarily affected after the credit card is declined. Therefore, it is not a good idea to apply for credit cards one by one. Your chances of continuing to be approved may decrease.
Become an authorized user
If you don’t have the necessary conditions to obtain a credit card, one option is to become an authorized user of someone else’s account. If you do, you will receive a credit card with your name on it and help you compile your credit history. If you become an authorized user, there is no risk. The main account holder is still responsible for all debts.
Before following this method, make sure that the issuer reports its authorized users to one of the three credit bureaus. Otherwise, opening a credit account will not cause your credit activity to be added to your record. If you have a credit card but don’t report it, you won’t be able to help you get your account in the future. Fortunately, most of the largest credit card issuers in the country have reported authorized users of TransUnion, Equifax or Experian.
Hire a co-signer
For those who do not qualify for a credit card, another option is to open an account with the co-signer. If the other party’s credit rating is good, it will greatly increase your chances of getting approval.
The co-signer is different from the authorized user because both parties share the debt. It has good and bad consequences. If your co-signer uses your credit card irresponsibly, it may adversely affect your credit score. At the same time, co-signers provide more opportunities to improve your credit score, because co-signers have a greater influence on your credit report than authorized users.
How to get an immigration credit card
Credit cards are not limited to U.S. citizens. When registering, you only need to provide a social security number and a valid US address. If you have just immigrated to this country, you may not have a credit rating or SSN, so you need to apply for a secure credit card. Even if you have a credit rating in the country where you emigrate, you cannot transfer it to the United States.
Another requirement is a permanent address in the United States. Those who often travel to the United States for short periods of time cannot apply for a credit card.
There you have it. Almost everything you need to know before applying for a credit card. Getting A Credit Card can be of great advantage at the same time a liability. It all depends on how you use it. If you use your credit card well, you will gain a lot from it while at the same time it might add to your liabilities if you are not careful.
Take advantage of your credit card and make good use of it.
Hope this helps!