To improve your chances of success, you need to understand the factors that issuers consider when reviewing applications, like your credit score, income, and debt levels.
In this guide, we’ll walk you through the steps of how to get approved for a credit card, from preparing your financial profile and choosing the right card to submitting your application.
What Do Credit Card Issuers Look For?
What should you know before applying for a credit card? When credit card issuers evaluate applicants, they generally consider a few main factors, including:
- Credit scores: Credit scores sum up the information on your credit reports in a three-digit number that communicates your likelihood to default as a borrower. For example, FICO scores range from 300 to 850, with 300 representing the highest risk and 850 representing the lowest. Credit card providers will check your scores to see if they fall into acceptable ranges.
- Credit reports: Credit reports offer a more detailed look at how you’ve managed credit accounts in the past. Card issuers will be interested in your payment history, amounts owed, length of credit history, credit mix, and new credit applications.
- Employment and income: Card issuers also check your employment situation (e.g., employed, self-employed, retired, student, unemployed, etc.) and income to assess your ability to repay a credit line. They may look for a specific minimum amount of income per month or year.
- Monthly rent/mortgage: The amount you pay towards housing each month is another factor. Card issuers want to know how much money you have left over for a credit card payment after paying bills.
- Debt-to-income ratio (DTI): On the same note, card issuers consider all your monthly debt payments to understand your discretionary income. The lower your DTI, the less risk you present and the more you can likely borrow.
While the above factors are commonly considered during credit card applications, card issuers aren’t allowed to base approval on the following:
- Age (beyond the minimum legal age)
- Sex (including sexual orientation and gender identity)
- Marital status
- Race
- Religion
- National origin
How to Choose the Right Credit Card
Credit card providers create different cards for different types of customers. For example, no-annual-fee credit cards like the Citi Double Cash Card are designed for customers with credit scores as low as 580, while the Chase Freedom Unlimited card requires credit scores of at least 670.
Margaret Poe, who leads consumer credit education at TransUnion, explains that credit histories vary widely among individuals, and card companies design products to match people at various points in their credit development.
You can increase your approval odds by knowing your credit scores and applying for cards that serve customers in your credit score range. Unfortunately, if you apply blindly, you can incur unnecessary hard credit inquiries and denials in your search for the right fit.
Poe further notes that while premium cards with annual fees and special benefits are available for those with strong credit scores, options like secured credit cards exist specifically for individuals who are new to credit or have limited credit history.
Steps to Get Approved for a Credit Card
Once you decide you want a new credit card, these steps can improve your approval odds.
1. Review Your Credit Reports
Credit scores are based on credit reports from the three consumer reporting agencies; Experian, Equifax, and Transunion. Check each of your reports to ensure everything is correct and in the best possible shape.
As you review your reports, take note of the following:
- Payment history: Credit card providers prefer a solid payment history that proves you tend to pay your credit bills on time. Late or missed payments will work against you.
- Credit utilization: The lower your credit utilization on existing revolving credit lines, the better. If you have balances above 10% of your credit limit, paying them down could work in your favor.
- New credit: Too many hard credit inquiries or new credit accounts are a red flag for lenders. Be selective with your applications as you prepare to get a new card.
- Old negative marks: If you have old negative credit marks, most will disappear from your report after seven years. Consider the fall-off dates and whether it makes sense to wait.
- Errors: Review the information on your reports carefully to ensure there aren’t fraudulent records or errors causing damage to your credit scores. If you find any, dispute them with the reporting agency.
2. Check Your Credit Scores
Next, check your credit scores. Americans typically have VantageScore and FICO credit scores from Experian, Equifax, and Transunion. It’s a good idea to check them all, as you never know which one a credit card issuer will pull.
Getting all your credit scores for free can be a bit tricky because you’re not entitled to them by law. However, it’s possible. You can browse the free VantageScore providers and get FICO credit scores from all three credit bureaus through a seven-day free trial of Experian CreditWorks℠ Premium.
3. Find Good-Fit Credit Cards
Once you know your credit scores, start exploring credit cards that match your profile. Start by checking minimum credit score requirements and making a shortlist. From there, compare annual percentage rates, fees, and credit card rewards options.
Consider which card will cost the least but offer the most in return for your spending habits and lifestyle. For example, if you frequently travel and have credit scores around 700, a travel credit card such as Chase Freedom Unlimited could be your best choice. It offers 5% cash back on travel booked through Chase Travel and no annual fee.
4. Prepare to Show Proof of Income
Credit card providers often request proof of income and employment, such as paystubs or tax returns. If you can’t verify your income with documents the card issuer finds acceptable, your application can get denied. To avoid delays or denials, use exact figures from your recent payment documents when filling out the application and keep them on hand.
What to Do If You’re Denied
Even with careful preparation, you might face a credit card denial. Here's what you can do next:
First, review the official denial notice. According to the Consumer Financial Protection Bureau (CFPB) credit card issuers must explain their decision in writing within 30 days. This explanation from the issuer will help you understand exactly what needs improvement.
Consider these next steps:
- Apply for a different card: Each credit card issuer has different approval criteria. While you can apply for cards with more flexible requirements, be selective with your applications. FICO notes that hard credit inquiries remain on your credit reports for two years and typically lower credit scores by several points.
- Apply with a cosigner: Adding a qualified cosigner can increase your approval chances with certain issuers. Keep in mind that both you and your cosigner become responsible for the debt and any missed payments will affect both credit scores.
- Apply for a secured credit card: These cards require an upfront deposit that becomes your credit limit. Many issuers offer a path to upgrade to a traditional card after demonstrating consistent responsible use, often refunding your deposit in the process.
- Improve your credit: You can also take a step back and work on improving your credit. For example, making on-time payments, paying down revolving credit line balances, and letting negative marks drop off will all help. Track your progress and plan to apply again once you’ve seen improvements.
Secured Credit Cards: A Path to Building Credit
For those new to credit or working to rebuild their credit history, secured credit cards (also known as credit builder credit cards) provide a practical solution. While these cards require an upfront deposit that serves as your credit limit, this deposit is usually refundable.
Using the card responsibly—making on-time payments and maintaining low balances—helps establish a positive credit history. Many users successfully transition to traditional unsecured cards after demonstrating consistent responsible use, either with their current card issuer or a new one.
Summary: Increasing Your Approval Odds
Getting approved for a credit card requires a mix of good credit and enough discretionary income to cover your minimum payments. However, card issuers can vary in their eligibility requirements, not only from one company to the next but between different cards from the same company.
Improving your odds of approval starts with doing your homework: optimizing your credit reports, checking your credit scores, calculating your income, and ensuring you have proof of your income. From there, look for credit cards that are a good fit for where you are in your credit journey.
Poe emphasizes that success in finding the right credit card comes from careful research and patience, encouraging consumers to take time exploring options that match both their financial situation and credit background.
