Applying for a credit card is pretty easy, but to get
approved, you'll need to meet certain requirements.
Here are ten tips to help you qualify.
Credit is an agreement where you borrow money to pay for
goods and services.
This money has to be repaid over time with fees and
interest. With a credit card, you borrow up to your limit.
Once you pay back some of what you borrowed,
you can borrow up to that limit again.
The higher your credit score,
the more likely you are to be approved for a credit card.
Before applying,
check your credit score and then apply to cards you are
likely to qualify for.
Credit card lenders want to know you'll be able to pay them
So make sure to report all your income when you apply.
The legal age to qualify for a a card is eighteen. However,
minors may qualify with an adult cosigner, like a parent
or guardian. If you apply with a cosigner,
be sure to include their income on your application.
Shop around to find a card with the best terms and rates for
you. Credit unions are a great place to start.
If you don't have much credit or have a low credit score,
consider a starter credit card. Look for cards described as
secured or designed for students.
Don't apply to every card you can think of.
Be selective.
Apply for one card at a time and wait a few months in
between applications.
Your debt to income ratio or DTI is the percentage of your
income that goes towards debt payments.
High DTI means you're less likely to be approved for card.
Pay down your debts to increase your chances.
If you have credit, rebuild it with a secured card. A
secured card requires a deposit to serve as collateral for your credit limit.
Using your card and making regular payments will improve
your credit and help you qualify for an unsecured card.
The most important thing you can do to qualify for a credit
card is to be persistent. If a creditor turns you down,
Call the issuer to find out why.
You can take steps to improve your application and try again.
Ready to start your credit card application now?
You can find the card for you at penfed.org.