April 18, 2024 |6 min read
Whether it’s to earn rewards, build credit or some other reason, deciding to get a new credit card can leave one big question on your mind: What does it take to get approved?
While there’s no way to know whether your credit card application will get the green light, the five tips below may help increase your chances before you apply for a credit card.
Key takeaways
- Practicing good credit habits, like staying well below your credit limit, is one way to improve your chances of getting approved for a credit card.
- Card issuers might look at how your debt compares to your income, so lowering that ratio—called the debt-to-income (DTI) ratio—could help before applying for a credit card.
- Checking to see whether you’re pre-approved for credit cards can help you find out which ones you may be eligible for. And it doesn’t hurt your credit to check.
- Even if you’re still building your credit, there may be a credit card for you. A secured card is one option, and you may be able to eventually graduate to an unsecured card.
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5 ways to improve your chances of approval for a credit card
Before you submit your credit card application, consider these five tips that can help you get approved:
1. Use credit responsibly
From car loans and rent to credit cards, staying current on the money you owe and always making payments on time can help you build good credit—no matter where you are on your credit journey. And credit card issuers may look at your payment history when they consider your application.
In addition to avoiding late credit card payments, consider these other tips for using credit responsibly:
- Aim to pay off balances on existing accounts. Paying more than the minimum amount due whenever possible might help you lower your balances faster. This could mean paying less in interest.
- Stay below your credit limit. Experts recommend keeping your credit utilization ratio below 30% across all your revolving credit accounts.
- Apply only for the credit you need. If you apply for multiple credit cards or loans over a short period of time, lenders may think your financial situation has changed for the worse—even if that’s not the case. Plus, those hard inquiries could temporarily hurt your credit scores.
2. Monitor your credit scores and credit reports
Credit bureaus rate your creditworthiness based on many factors, like the number of recently opened accounts and your payment history. Card issuers typically look at scores and your credit history when you apply for a credit card. The better your scores, the more likely you may be to get approved.
Your credit scores are based on the information in your credit reports. And that means errors can hurt your credit. Learn how to get free copies of your credit reports from AnnualCreditReport.com. And if you spot an error, the Consumer Financial Protection Bureau has information about how to dispute credit report errors.
You can also use CreditWise from Capital One. With CreditWise, you can access your free TransUnion® credit report and VantageScore® 3.0 credit score anytime without negatively impacting your score. And CreditWise is free and available to everyone—not just Capital One cardholders.
3. Be aware of your debt-to-income (DTI) ratio
Your DTI ratio is a simple comparison of how much you owe and how much you earn. Credit card issuers may check your DTI ratio before approving your application or setting your credit limit. So lowering your DTI ratio could help your chances of being approved.
4. See whether you’re pre-approved
Before you apply, credit card pre-approval or pre-qualification can help you compare credit card offers and find the right fit. Pre-approval can show you if you’re likely to qualify for a credit card. And because pre-approval typically uses a soft inquiry, it won’t hurt your credit scores.
With Capital One’s pre-approval tool, you can see what card offers you may be eligible for before you apply. It’s simple and straightforward—and you could receive a response in as little as 60 seconds.
5. Understand that building credit takes time
There are no shortcuts to building credit. It takes time and responsible financial behavior. Even if now isn’t the right time to apply for the credit card you hoped for, there are other ways to build credit. You could consider options such as:
- Applying for a secured credit card
- Becoming an authorized user
- Setting up a joint credit card account
- Applying for a credit-builder loan
So-called alternative scoring methods are also sometimes used to help determine creditworthiness. So keeping up with bills for rent and cellphones could help you build credit if the activity is reported to credit bureaus.
Credit card approval FAQ
Check out these frequently asked questions about how to get approved for a credit card:
Why can’t I get approved for a credit card?
If your application is declined, lenders are required to tell you why. Some common reasons for not getting approved for a credit card include:
- Having a low credit score
- Having too much debt
- Having too many hard inquiries on your credit reports
- Having a limited or no credit history
- Not being old enough
- Not completely filling out the application
Keep in mind that Capital One pre-approval can help you find which credit cards you may be eligible for. And while it doesn’t guarantee approval, it can help you apply with greater certainty.
Can I get approved for a credit card if I have bad credit?
If you’re applying for a new credit card and have low credit scores, there may still be options for getting a credit card. For example, you could consider a secured credit card.
With a secured credit card, you provide a security deposit as collateral. The deposit is usually refundable. And once an account is open, the credit card works the same as a traditional, unsecured card.
Which card is easiest to get approved for?
Credit card issuers typically look at creditworthiness when they’re reviewing applications. If you’re working to build or rebuild your credit, a secured credit card could be a good option. And if you’re a college student, you might want to apply for a student credit card.
What is the best credit card to get approved for?
There’s not necessarily a best credit card—it’s more about picking a card that’s best for you. And that depends on your individual needs and situation. But as you’re credit card shopping, it’s a good idea to compare the annual percentage rates, fees and rewards.
Getting approved for a credit card in a nutshell
It can be exciting to get a new credit card. But before you submit your application, there are some things you could do that might help you get approved, like monitoring your credit reports, making sure you understand responsible credit use, paying bills on time and keeping your credit utilization ratio low.
You can also see whether you’re already pre-approved for a credit card. It’s a way to check for credit card offers without impacting your credit. And once you have a better idea of which offers you may qualify for, you can compare credit cards from Capital One.
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