How to Increase Your Chances of Credit Card Approval - NerdWallet (2024)

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Amid the COVID-19 pandemic and recession, many Americans are struggling to pay their bills — and as a result, credit card issuers are pulling back on the available credit they are offering consumers. That means not only is it harder to get approved for new credit cards, but cardholders are seeing credit limits on their existing cards slashed, too.

“Lenders are being proactive by lowering limits and increasing score requirements so they are protected from a spike in defaults and losses,” says John Ulzheimer, a credit expert. He adds that even consumers with good credit are seeing their credit limits cut, and that he personally has had the credit limit lowered on two cards in the last month or so.

Still, even in this climate, there are ways to increase your chances of maintaining easy access to credit, starting with these five steps:

Work on your credit score

Credit card issuers are trying to reduce their own risk by doing what is called a “flight to quality,” Ulzheimer explains. That means they are trying to shift their business to consumers with higher credit scores whom they deem less likely to default on their credit card payments. “When you increase credit score requirements, the risk of your new customers defaulting or missing payments is less,” he says.

Consumers with good credit scores (typically FICO scores of 690 and up) are not totally immune to the recession’s impact on credit limits, but they tend to be the last ones to have their credit limits lowered and the most likely to still qualify for a loan or credit card, Ulzheimer says.

If you're eyeing a credit card but you have less-than-good credit, focus on your credit scores: Make on-time payments each month, keep your credit utilization rate below 30% or so, and keep any older credit cards open to lengthen your credit history.

» MORE: How to apply for a credit card so you'll get approved

Consider different cards

Not all credit cards require good to excellent credit; in fact, some cards are geared toward consumers who are still building their credit. In general, cash back and travel rewards cards require good to excellent credit even in normal times, and especially so during the COVID-19 crisis.

So if, for example, you have poor credit (FICO scores of 629 or below), it can make more sense to apply instead for cards targeted toward people with bad credit. These cards often make it possible to improve your credit over time so you can qualify for better cards down the road.

» MORE: Why it's so hard to find a balance transfer offer right now

Apply for a secured card

Secured credit cards can also help people build credit: You put down a certain amount of money upfront, and then you can spend up to that amount on the card.

Like cards targeted toward people with bad credit, secured cards also make it possible to build your credit over time.

» MORE: NerdWallet’s best secured credit cards

Wait it out

At a time when so many travel and entertainment limitations are still in place, maybe you don’t need a new rewards card or travel card?

Instead of applying for new cards now when so much is in flux, it may make sense to wait out the current recession if you're able to (while still doing things to build your credit, of course).

You may end up with more options later.

How COVID-19 is affecting credit card customers

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Monitor the market

Even during this recession and global pandemic, credit card issuers are launching new products and tweaking existing ones. Your future favorite card might not even exist yet. So keep an eye on new cards hitting the market and the changes being made to the ones currently available.

That way, you’ll be ready to apply for the card you want once life starts to inch back to normal.

» MORE: If you need credit card relief, know the options and risks

How to Increase Your Chances of Credit Card Approval - NerdWallet (2024)

FAQs

How can I increase my chances of getting approved for a credit card? ›

Knowing your credit score and maintaining a low credit utilization ratio can greatly increase your chance of approval for a credit card. You'll find many cards designed for different credit score ranges. Narrow down choices to those that you're positioned to be approved for.

How to guarantee credit card approval? ›

If you're thinking of applying for a credit card, here are 10 tips to increase your chances of getting your application approved.
  1. Don't apply for too many cards at once. ...
  2. Know what's in your credit reports. ...
  3. Apply for cards that fit your credit score. ...
  4. Pay your bills on time. ...
  5. Watch your credit utilization.
6 days ago

Does NerdWallet do hard inquiry? ›

Checking your credit score on NerdWallet only prompts a soft inquiry on your credit report - not a hard inquiry - and will never impact your score in any way, no matter how often you check it. This article includes more detail about this: Does Checking My Credit Score Lower It?

How to raise your credit score 200 points in 30 days? ›

How to Raise Your Credit Score by 200 Points
  1. Get More Credit Accounts.
  2. Pay Down High Credit Card Balances.
  3. Always Make On-Time Payments.
  4. Keep the Accounts that You Already Have.
  5. Dispute Incorrect Items on Your Credit Report.

What is a 5 24 rule? ›

What is the 5/24 rule? Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

Which bank approves a credit card easily? ›

Credit Score

The U.S. Bank Cash+® Secured Visa® Card* is not only easy to get, but you can earn cash back and will pay no annual fee.

What's better than NerdWallet? ›

NerdWallet's alternatives and competitors. See how NerdWallet compares to similar products. NerdWallet's top competitors include SmartAsset, Pawlicy Advisor, and Frank. SmartAsset is a financial decision-making platform operating in the personal finance and investment advisory sectors.

How many hard inquiries is OK? ›

There's no specific number of hard inquiries that's too many or too few. Although some hard inquiries might hurt your credit scores a little, credit scoring models also ignore many hard inquiries when consumers shop for a new loan.

Is a 750 credit score good? ›

A 750 credit score is Very Good, but it can be even better. If you can elevate your score into the Exceptional range (800-850), you could become eligible for the very best lending terms, including the lowest interest rates and fees, and the most enticing credit-card rewards programs.

Is 650 a good credit score? ›

A FICO® Score of 650 places you within a population of consumers whose credit may be seen as Fair. Your 650 FICO® Score is lower than the average U.S. credit score. Statistically speaking, 28% of consumers with credit scores in the Fair range are likely to become seriously delinquent in the future.

How to get 800 credit score in 45 days? ›

Here are 10 ways to increase your credit score by 100 points - most often this can be done within 45 days.
  1. Check your credit report. ...
  2. Pay your bills on time. ...
  3. Pay off any collections. ...
  4. Get caught up on past-due bills. ...
  5. Keep balances low on your credit cards. ...
  6. Pay off debt rather than continually transferring it.

How to boost credit score overnight? ›

5 Ways to Boost Your Credit Score Overnight
  1. Review Your Credit Reports and Dispute Errors.
  2. Pay Bills On Time.
  3. Report Positive Payment History Like Utilities to Credit Bureaus.
  4. Keep Old Accounts Open.
  5. Keep Your Credit Balances Under 30%

How do I guarantee a credit limit increase? ›

Paying your credit card and other bills on time every month. Making more than the minimum monthly payment and paying down existing balances where possible. Lowering your credit utilization rate. Settling any existing collections accounts.

What are the easiest credit cards to get? ›

Comparing the easiest cards to get
Card NameAnnual feeFICO score required
Indigo® Mastercard®$0-$99 depending on creditworthiness300 to 670
Capital One Platinum Credit Card$0580 to 740
Capital One Quicksilver Student Cash Rewards Credit Card$0580 to 740
Discover it® Student Chrome$0No credit history
3 more rows
Jun 28, 2024

How can I increase my credit card eligibility? ›

Try to reduce debts

(This is the amount of available credit you're using). In turn, this can improve your eligibility. Aim to spend 30% or less of your credit limit to improve your credit score. Doing so will show lenders that you're a responsible borrower who will pay them back.

What do banks look at when applying for a credit card? ›

Income: Issuers may want to know your income to ensure you'll be able to pay your balance and to help them set an appropriate credit limit to your account. Credit score: For traditional, unsecured credit cards, issuers will typically only approve applicants with a qualifying credit score.

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