You have applied for a new credit card and cannot wait to put it to use. However, it has yet to be approved. Although you believe you meet the eligibility requirements, you are still perplexed as to the reason for the delay. So, where did things go wrong?
You begin to wonder if you are a borderline applicant who might be denied the card. This is especially true because banks rigorously evaluate candidates with less-than-impressive qualifications before issuing cards. It may take some time to complete this task.
If you have faced such a situation and wish to expedite the process of successfully obtaining the card. Keep reading.
5 Ways to Accelerate the Credit Card Approval Process
Check your credit score and apply accordingly
Banks use credit scores as a key criterion when issuing a credit card. It is crucial to check your credit score and apply for the card that meets your eligibility. Banks provide creditworthy consumers with several types of cards, such as lifelong free credit cards, millennia credit cards, and others.
If you have a low credit score, it is recommended to apply for a credit card with a low limit. This will be viewed positively by issuers, who may not hesitate to issue a card. It is critical not to apply for premium cards with reward points and additional benefits if your credit score is low.
List all relevant household income
When applying for a credit card, applicants often include their current employment salary. While this is significant, you can also include revenue from any other source, if any. If you have money from sources such as rent, it will improve your creditworthiness and raise your chances of quickly acquiring a credit card. This is yet another approach to speed up the procedure of credit card issuance.
Apply for a secured credit card
If you’re concerned that your credit score isn’t in good shape and that you won’t be able to get a card, you can apply for a secured credit card. A secured credit card is issued with a bank deposit as collateral. This will also help you gradually build your credit score. Banks also readily provide secured credit cards.
No hard inquiries
Do not apply for multiple credit cards or loans in a short period of time. It will result in hard inquiries, which will harm your credit score. The purpose of a hard inquiry by a bank is to examine your credit score, nevertheless, too many such inquiries by different institutions signal that the applicant is credit hungry. It is important to avoid applying for multiple credit cards or loans in order to get your credit card approved quickly.
Credit utilization ratio
Credit cardholders nowadays commonly use their cards to shop online or in retail stores. The most appealing feature on cards is the reward points or exciting deals, such as cashback or movie ticket offers, and so on. However, keep in mind that the credit utilization ratio should be less than 30% of the credit limit available. It is best to use the card with caution. Reckless financial behaviour might not only damage your credit score but also lead to a debt trap. If you’re applying for a new credit card, be sure you have paid off your debts and that your credit usage is as low as possible.
Banks offer many types of credit cards to reliable customers. For daily use, it is best to apply for a credit card with a low-interest rate. You are more likely to qualify for a card quickly if you follow the steps outlined above.