Applying for a Credit Card? Here’s How Your Approval Odds Stack Up (2024)

There are a couple of conclusions to draw from those numbers. As Pearson mentioned, it’s possible to have an excellent credit score and still be turned down for a credit card. It’s also possible to qualify for a credit card even when you have no credit at all, which is encouraging if you’re just beginning to establish your credit history.

Improve Your Odds of Being Approved for a Card

Regardless of whether you have excellent or fair credit, there are steps you can take to raise your chances of being approved for a new credit card offer.

Check Your Credit Report and Score

If you haven’t checked your credit report and scores yet, this is a good place to start when trying to improve your odds of getting a credit card. Your credit report is a collection of information that’s used to calculate your credit scores. This includes things such as payment history, account balances, inquiries for new credit, delinquencies, and public records.

You can get your credit report for free once per year from the three main credit bureaus, Experian, Equifax, and TransUnion, through the AnnualCreditReport.com website. If you’ve never checked your credit report before, it may be helpful to get all three reports at the same time to see how your credit history compares. You may have a creditor that reports to only one bureau instead of all three, for example, which could affect your credit score.

As you review your reports, check to make sure all the information is correct. If you see an error or inaccuracy, you have the right to dispute it with the credit bureau that’s reporting the information.

If the bureau verifies that an error exists, it is legally required to remove it or correct it, either of which could add a few points back to your score.

Practice Healthy Credit Score Habits

For FICO score calculations, two factors, in particular, carry the most weight: payment history and credit utilization.

Credit utilization is how much of your credit limit you’re using at any given time. Knowing how to manage these two factors is key to improving your credit score. “Your payment history is the number one thing that goes into calculating your credit score,” Pearson says. “Just one late or missed payment can send your credit score down by more than 50 points.”

You can avoid that scenario by making your payments on time every month. If you struggle to manage due dates, automating payments from your bank account can simplify the bill payment process. Alternately, you could set up alerts through your bank or with your billers to let you know when a due date is approaching.

If you already have one or more credit cards, maintaining low balances can also help your score. “Most lenders like to see your credit utilization number at 30% or below,” Pearson says.

Paying down your current balances can improve your utilization ratio.

Another option is requesting a credit limit increase on your cards. By increasing your available credit limit, you improve your utilization ratio, assuming you don’t make any new purchases against the higher limit.

Compare Card Offers Carefully Before Applying

Credit card companies routinely change their credit card offers. While they may not explicitly state what minimum credit score they’re looking for from consumers, many of them do give a general range that indicates who the card is suited for.

For example, a credit card company might offer a cash-back card with one rewards rate for consumers with good or fair credit and reserve a card with a higher cash-reward rate or better perks for consumers who have excellent credit.

Taking time to do your homework and research card options can help you narrow the field to the cards for which you’re best suited, based on your credit profile.

From there, you can streamline the list further by determining which cards best fit your needs. For instance, if you carry a balance, you may prefer a card that offers a low annual percentage rate (APR) on purchases. Or you might be interested in a card that offers travel miles or points rather than cash-back rewards.

Remember to look beyond credit scores and consider the other requirements a lender may set, such as a minimum income threshold. Also, check the card options your bank offers against what other banks advertise. I

f you have a positive banking history with your bank or credit union, you may find it easier to qualify for a card.

In any case, take the time to review the APR and fees of any card you consider, so you know what the card will cost you.

Try Other Credit-Building Options If You’re Denied

if you aren’t able to get approved for a credit card, don’t lose hope. You may have to work a little harder to raise your credit score.

In the meantime consider other options for using credit, such as a secured credit card or a credit-builder loan. These are small personal loans you can use to establish and/or build credit by making timely payments.

If you’re unable to get approved for a card because you’re under 21, the age limit for getting credit cards imposed by the 2009 CARD Act, you could try the authorized user route. This involves asking your parents to add you to one of their cards as an authorized user.

You wouldn’t be responsible for any debt incurred on the card, but you could reap the benefits of their responsible card use. This could be a stepping stone to getting approved for a card of your own down the line.

The Bottom Line

Being approved for a credit card can take time if you don’t have a lengthy credit history or your credit score is recovering from a past mistake. Remember to be patient when building credit, as it can take time for your efforts to be reflected in your credit score. In the meantime, continue practicing good credit habits (such as paying bills on time) and consider enrolling in a free credit monitoring service to track your progress from month to month. You can also select from one of the best credit monitoring services available.