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How to Increase Your Chances of Credit Card Approval
Struggling with credit card approval? Or are you scared that your new credit card application might get rejected? Worry not! Here are 9 tips to improve your chances of getting a credit card application approved in no time. Scroll down to know more
Follow the below-mentioned tips to improve your chances for credit card application approval:
1. Minimise the Number of Applications
Each time you apply for a new credit card, the lending institution checks your creditworthiness (hard inquiry). It is advisable not to apply for multiple credit cards, as doing so may indicate that you are too reliant on credit. So, maintain at least a six-month gap between applying for a new credit card.
2. Analyse Your Credit Report
Make sure there are no mistakes in the entries on your credit report. If the errors are not eliminated, your credit score is likely to deteriorate, which may further lead to your card application being declined. So, if you detect any error, make it a point to file a dispute with the credit bureau to have it rectified as quickly as possible.
3. Apply with Easier Requirements
Compare the requirements of different credit card providers. Then, you can apply for a specific credit card based on factors like your credit score, income, credit utilisation ratio, and employment status. If your credit score is more compatible with the requirements of a specific card provider, you'll have the best chance to get approved for a credit card.
4. Pay Your Bills on Time
Making timely payments contributes to building a reliable credit history and further helps you maintain a good credit score. Be sure to pay the minimum amount at least due to avoid potential late penalties.
5. Maintain a Good Credit Utilisation Ratio
Ensure to keep your credit card balances low, as card providers will assess your credit utilisation. Keeping it under 30% or less indicates that you are managing your credit responsibly. So, if your credit limit is at Rs. 1,00,000, you must not spend over Rs. 30,000 per month.
6. Always Have a Mixed Credit
If your credit history showcases various kinds of cards or loans—your appeal as a borrower will be boosted in the lenders’ eyes. It demonstrates your ability to consistently make the necessary payments and represents your reliability as a potential cardholder.
7. Use a Secured Card to Establish Your Credit History
You can avail a secured credit card by making a cash deposit to build your credit history. By making timely repayments, you can gradually increase your credit score. This will improve your chances of getting approval for an unsecured card.
8. Choose a Co-signer
If you have a poor credit score, choosing a co-signer with a good credit score may increase your chances of getting the credit application approved. If the co-signer has a steady source of income and a high credit score, they can take over the responsibility of paying your credit card debt if the need arises. This reduces the risk for the creditor.
9. Wait for an Appropriate Time to Apply
Certain categories of credit cards are typically extended to applicants with high credit scores. So, focus on building your credit score before opting for such cards. Apply for a new credit card only once your credit score is high enough to avail attractive rewards.
Also Read - What is the Minimum CIBIL Score Required for a Credit Card?
You can apply for a lifetime free credit card with Poonawalla Fincorp by:
Method 1: Visiting the Poonawalla Fincorp IndusInd Bank eLITE RuPay Credit Card page and click on ‘Apply Now’ button.
or
Method 2: Visiting the IndusInd Bank website.
Also Read - How to Improve Credit Score in India After Default?
To successfully obtain a credit card application approval, you must prove that you’re financially responsible. In order to do so, you must build a good credit score. Ensure you pay your bills on time and maintain a level of income toimprove your eligibility for new credit cards in the future. However, if you are looking to apply for a lifetime free credit card, you can visit Poonawalla Fincorp IndusInd Bank eLITE RuPay Credit Card page to enjoy the benefits such as zero joining fees or annual fees, reward points, movie deals, and more. So, what are you waiting for? Apply now!
1. How to make sure that my credit card request gets approved?
Your credit card application is more likely to get approved if you meet all of the eligibility criteria set by the lender. To improve your eligibility, you must pay your bills on time, apply for a secured card and keep a close eye on your credit report for any mistakes.
2. Will applying for too many credit cards at once hurt my credit report?
Yes, applying for too many credit cards at once will negatively impact your credit score. So, to be on the safe side, set a limit of requesting one card every six months.
3. Is an unsecured credit card better than a secured one?
Yes, an unsecured credit card is better than a secured one, especially if you have a poor credit score. By opting for a secured card, you can at least have a credit card in your name and the time to build a credit history.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
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Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.
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