A credit card is a great financial tool that helps you to make purchases and build a good credit history. However, applying for a credit card can be a challenging process. Whether you’re a first-time applicant or looking to expand your credit profile, you apply assuming you will get approval on your credit card application. In this article, nine important tips for getting your credit card application approved are discussed, which can help you get it quickly
- Know Your Credit Score: Understanding your credit score is necessary before applying for a credit card. Lenders, financial institutions or banks use this score to evaluate your creditworthiness. A higher credit score generally increases your chances of approval. You should check your score regularly and focus on improving it if needed.
- Choose the Right Credit Card: Not all credit cards offer the same benefits. There are different types of credit cards suitable for a different set of needs. Research and select a card that aligns with your financial situation and spending habits. Some cards cater to specific requirements and lifestyles, such as travel rewards, movies, cashback, or low-interest rates. Matching the right card to your lifestyle increases the chances of approval.
- Maintain Stable Employment: Lenders appreciate stability, and a consistent employment history enhances your creditworthiness. If possible, avoid changing jobs shortly before applying for a credit card. A stable income reassures lenders that you can manage your credit responsibly. It also assures them that you can pay credit bills on time and have a stable job.
- Assess Your Debt-to-Income Ratio: Lenders evaluate your ability to handle new debt by examining your Debt-to-Income (DTI) ratio. This ratio compares your monthly debt payments to your gross monthly income. A lower ratio indicates more disposable income, making you a more attractive candidate for credit.
- Review and Update Your Personal Information: Ensure that the information on your credit report is accurate and up-to-date. Incorrect details may negatively impact your credit score and hinder your chances of approval. Regularly review your credit report and promptly dispute any inaccuracies.
- Optimise Your Credit Utilisation: The ratio of your credit card balances to your credit limits, is a critical factor in the approval process. Aim to keep your credit utilisation below 30%, as this demonstrates responsible credit management and increases your chances of approval.
- Minimise the number of recent credit applications: Frequent credit applications can raise red flags for lenders, suggesting financial instability. Space out your credit card applications and avoid applying for multiple cards quickly. This helps maintain a positive image and increases your approval odds.
- Build a Positive Credit History: A positive credit history is a powerful tool in securing credit card approval. Timely payments on existing credit accounts, responsible credit use, and a demonstrated ability to manage debt positively influence your creditworthiness.
A good credit history tells the banks or lending institutions that you are a responsible citizen who utilises finances wisely and pays the outstanding credit card payments or other loans on time.
Consider getting a credit card on a Fixed Deposit: If you don’t have a credit history or a poor history. There is still a way to get approval on your credit card application. There are many reputed banks in India offering secured credit cards. You can get these credit cards by opening a Fixed Deposit (FD) with a bank.
How to apply for a credit card online?
You can follow the steps given to apply for a credit card online:
- Identify your needs and lifestyle: Understand what you want to do with your credit card. Know where you will be using it for fuel, grocery, shopping, etc. It will help you get a specific card type for that particular purpose.
- Do your research: Look for the different types of cards and lenders in the market. Know their charges, terms and conditions and make a wise choice. Try to find the card with the lowest credit card interest rate in India.
- Apply Online: Once the type of credit card and the bank or lender are identified, go to the website or mobile app of the bank and navigate to the credit card section. You will find the Apply Now or Get credit card button. Just click on it.
- Fill out the credit card application form: Fill in your details like name, phone number, PAN card number and all the details required. Make sure you submit the correct details to avoid delay.
- Documents upload: You may be asked to upload your necessary documents through the website or app. It may also require eKYC for verification.
- Submit Application: Once verified, your credit card application will be submitted. The bank or lending institution will let you know the updates by phone or email. If approved, you can get your credit card and use it to make purchases.