How To Get Credit Card

How To Get Credit Card Approval

How To Get Credit Card Approval

Im often asked how to get credit card approval with the minimum of trouble and without it taking an immeasurable ammount of time. Well actually, providing you have a reasonable credit rating, you can expect to be approved inside a day or so, and it is all really painless. If your credit score is excellent, the process can take as little as only a minute or two or in some instances it happens immediately. Now what about if you are in possession of a less than perfect credit score? And what is considered to be a good credit rating anyway? Well let us look at these queries and others and you will soon realize exactly how to get credit card approval.

What is meant by a Credit Score?

An individual's creditworthiness is characterized by a credit 'score' which emerges from details taken from the individual's credit history of making credit payments on time. This 'credit score' was originally established in 1989 and the purpose of a credit score was to predict the likelihood of an individual paying his debts on time. Credit scores range between 300 and 850 and this figure depicts an individual's creditworthiness at an exact point in time.

What is considered to be a reasonable credit history?

During 2010, a 720 credit score was deemed the minimum borderline for establishing a good credit rating. That figure was approximately 100 points higher than before the housing market crashed in 2008 and the current recession began. The average credit score for all US consumers currently is around 725, even though the bridge between those consumers with a credit score below 600 and those with scores in excess of 800 is getting wider.

How to get credit card approval with a less than perfect credit rating.

Having bad credit will not necessarily stop you from being approved for a credit card, but bad credit can make it more expensive than if you had good credit. Here's how to get credit card approval despite your bad credit.

If you know you have a blot on your credit report, you might increase your odds of getting approved for a card by mentioning the reasons for your financial predicament. No one wants or indeed needs bad credit, but with record job losses, foreclosures and credit card defaults over the past year or two, more consumers are finding themselves with falling credit scores. Consumers have the option of adding a statement of up to 100 words to their credit reports, affording creditors an explanation for the drop in their scores. Whoever checks out your credit is obliged to take into account what is written in that statement.

Knowing how to get credit card approval is only the first step in being approved for the card you really want. Even if you accept a card with a higher interest rate, paying the complete balance each month will avert you having to pay any interest payments and will serve to improve your credit at the same time. It does not do your credit score much good when you have an application rejected, so you it pays to initially research the type of card you are most likely to get approval for, based on your credit history. Your initial enquiries should be your bank or credit union. They will know more about your financial situation than anyone else. You may also make applications for credit cards at smaller retail outlets. Sometimes these smaller companies are more willing to offer you a chance. Or you could simply request a friend or family member to co-sign for a credit card. Keep in mind that their credit is taken into consideration as well, so ask someone with good credit. If you don't make the payments, then they will have to, and it will appear as a blot on their credit rating.

If all else fails you might apply for a secured card. You will have to open and maintain an interest-bearing savings account as security for your line of credit. Your line of credit will be a percentage of your deposited funds. Poor credit is never an issue because you'll be depositing money that the card company can take should you fail to pay your balance. A secured card would typically be a temporary move while you mend your credit. Though no means a perfect move, finding out how to get credit card approval and get your credit back in good shape should be your main agenda.

To be perfectly honest my recommendation to you if you have a bad credit history is to postpone your application for a credit card for a month or two and make use of that time in fixing your credit, or at very least recovering it to the level where you will not be penalized too much when you ultimately make that application. It's all part of finding out how to get credit card approval for the card that will be perfect for your personal requirements.

How To Get Credit Card Approval - Trevor Taylor Copyright 2011