1. Plan & improve your Credit Score
It is important to have a high credit score of 750 and above for you to get a credit card easily. So, clearing phone bills, paying loan EMIs on time, paying existing credit card dues on time are few things you should do to maintain a healthy credit history, following which a person will automatically have a high credit score on CIBIL.
Try to have as little debt as possible and clear all dues before applying for a credit card. To check your eligibility for credit card you can also check your credit score on credit.com for free. Depending on individual monthly income and existing debt, credit card insurer will offer credit limit to individual person.
2. Clear the outstanding Credit
If you have any sort of previous dues or remaining credit first clear it before applying for a credit card. As high loan amount or dues on any other credit card can negatively impact your credit score. If you have any previous dues on credit card try not to just pay the interest and roll over the balance to next month as this can adversely impact your credit score. It is best to clear all dues of the previous card and then apply for another card. If you are applying for a credit card for the first time, you may have higher chances of getting the card approved easily, due to clean track record.
3. Find Out Rejection reasons
If a credit card insurer refuses to provide you a credit card, by law you have all the right to ask the issuer, the reason for refusal. Usually, the credit card providers send a letter mentioning the cause of rejection. If not satisfied with the reasons you can ask them to provide a free copy of your credit score. Once you are aware of the reasons you can work around it on how to clear your existing debts, and improve your credit score. This will increase your chance of getting a credit card next time when you apply.
Quick Facts
Credit Score plays an important role in getting a good credit card. What influence your Credit Score?
- Credit Payment History: 35%
- Credit Capacity: 30%
- Length of Credit History: 15%
- Number of Accounts you are maintaining: 10%
- Frequent credit inquiries and other factors: 10%
4. Pause before Application
If your card gets rejected for the first time don’t be disheartened as it may be a technical glitch. Speak to the insurer and find out the exact cause for denial. You can even ask them to reconsider your application provided you have a clear credit history. It is advisable not to apply for too many cards or for new credits at the same time. The card insurers will not only check your past credit history, but will try to gauge if you are trying to take too much credit at a time, from various banks or other sources.
Try to pace out applications so that credit card insurers don’t consider you as a high-risk borrower, who is looking to borrow money, more than you can afford to pay back. Also, don’t ask for too many cards from the same insurer. Credit scoring formulas and the card issuers themselves view multiple recent applications for new credit cards as a warning sign of financial trouble. So even though you might just be hoping to earn a generous sign-up bonus and not incur debt, the card issuer may be worried about your repayment capability.
Quick Facts
Periodically checking your own credit score will not hurt your Credit Score.
When you check your own credit score by requesting a credit report, it creates a soft inquiry. Soft inquiry will not participate in credit score calculations. Generally checking once or twice a year is generally recommended to see any errors in the report.
Conclusion
Try to have less debt and a high CIBIL score to get a credit card easily.
