8 ways to maximize your chances of being approved for a credit card - The Points Guy (2024)

When you apply for a great travel rewards card, the last thing you want is to be turned down. The sign-up bonus, the benefits and the points earned are luring you in, so you'll want to do everything possible to be approved.

In this post, I'll share some tips on how to how to increase your chances for an approval so you'll be on your way to securing a new credit card in your wallet.

Check your credit history and score

In considering your credit card application, the most important factors for the issuer are your credit history and credit score. Most major issuers offer customers free access to their credit score. For example, the Capital One offers its CreditWise program to anyone. These services will also give you feedback about the factors affecting your score.

Related: How to check your credit score for absolutely free

If your credit score is not where you think it should be, request a copy of your credit history from the three major consumer credit bureaus to find out the details. To obtain your copy, go to AnnualCreditReport.com, the only source for free credit reports authorized by federal law.

With this service, you can request one free copy of your credit report every week from each credit-reporting company.

Only apply for cards matching your credit profile

Travel rewards cards are typically only offered to those with excellent (740+) or good (670-739) credit scores. In general, the more features and benefits offered, the higher the credit score requirements will be, so don't expect to be approved for a premium card like The Platinum Card® from American Express with a credit score in the low 600s.

8 ways to maximize your chances of being approved for a credit card - The Points Guy (1)

Related: The 6 best starter cards for building your credit

Reduce your outstanding debt

I was outraged the first time I saw a copy of my credit report. It showed that I had outstanding debt on all of my credit cards, even though I was consistently paying off my statement balances in full and on time.

8 ways to maximize your chances of being approved for a credit card - The Points Guy (2)

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Later, I learned why my credit reports all showed me in debt: Every time a credit card's monthly statement cycle closes, it generates a statement and reports that statement balance to the three major consumer credit bureaus. At that moment, the card issuers have no way of knowing if you'll eventually avoid interest charges by paying your statement balance in full. Technically, my statement balances all constituted outstanding debt, even though I was confident that the interest charges would be waived when I paid each statement balance in full before its due date.

Related: The right way to pay your credit card bills

Even if your statement balances aren't high, they still count as debt and can make a card issuer hesitant to approve you for a new line of credit. The bank is less concerned that it will offer you yet another sign-up bonus than it is worried about over-extending credit to you and risking default.

Once you understand the bank's concerns and how your statement balances are reported as outstanding debt, it's easy to take steps to minimize what's reported. The first step is to pay off your largest outstanding balances before the end of the statement periods for your credit cards. Otherwise, paying a balance just after your statement closes won't reduce the balance that's reported to the credit bureaus that month.

If you pay before the end of the statement periods on your credit cards, you won't appear to have any outstanding debt. In addition, you'll probably experience a small bump in your credit score as your debt-to-credit ratio plummets. I try to do this in anticipation of applying for a new credit card, and it's a vital strategy when you're applying for a mortgage or home loan.

Lower your credit utilization ratio

In addition to lowering your debt, you'll also want to maintain a high credit amount. These two numbers make up your credit utilization ratio, which can be calculated by dividing your total credit card balances by your total available credit.

8 ways to maximize your chances of being approved for a credit card - The Points Guy (3)

Related: Credit utilization ratio: What is it and how it affects your credit score

Even though you want to pay off your credit card balances in full before your statement closes for the month, it is equally as important that your denominator number stays high, giving you a lower utilization ratio. This can ultimately make up about 30% of your FICO score, which makes it a pretty important factor in determining your credit score. While applying for a credit card can sometimes hurt your credit score slightly in the short term, in the long term, it's actually giving you more credit, thus potentially helping your credit utilization ratio.

Another thing to consider is that when you cancel a credit card, you are giving back some of your credit. This could hurt your ratio, so instead, you'll want to consider downgrading to a no-annual-fee card or shifting that credit over to another credit card within the same bank network.

Pay off outstanding balances to the same issuer

You can also increase your chances of approval by reducing or eliminating any current balances with other cards you have from the same card issuer. The bank can always see this kind of outstanding "debt" in real time.

For example, if you were looking to be approved for the Chase Sapphire Reserve, you might want to pay off any existing balances with other Chase cards before applying. In this case, the statement doesn't need to close before applying; the bank will always know your current balance.

Be mindful of application restrictions

Some card issuers limit you to a maximum number of accounts where you're the primary cardholder. Others will limit the number of applications you can make in a certain period, such as Chase's (theoretical) limit of one personal and one business card application every 90 days.

Related: The ultimate guide to credit card application restrictions

Include all income sources

One common mistake people make when applying for a credit card is understating their income by not including all qualifying sources.

The Credit Card Accountability Responsibility and Disclosure (CARD) Act allows you to include all household income you have a reasonable expectation of access to. The primary reason for this rule is to ensure that non-working spouses and domestic partners have equal access to credit.

In addition, be sure to include other eligible sources of income such as alimony, child support, disability benefits, investment income and disbursement of retirement savings.

Call for reconsideration

If your application has been initially denied, don't give up. You can contact the bank's reconsideration line and ask a representative to manually consider your application. Before calling, try to pay down your existing balances, especially with any accounts you have from the same bank you applied to.

8 ways to maximize your chances of being approved for a credit card - The Points Guy (4)

Related: What I learned from each of my rejected credit card applications

In some cases, I've called to plead my case, and the representative has immediately approved my application with no questions asked. Other times, you might have to explain why you want to be approved. For example, you might want to mention the features and benefits of the card you're interested in and avoid specifically mentioning the sign-up bonus. And if you didn't initially include all your sources of income, ask to have your application updated.

If that doesn't work, suggest reallocating a part of your existing line of credit with that bank. Remember, the bank's priority is to limit its exposure in case you can't pay back your charges. By volunteering to shift your line of credit, you're making it possible for an issuer to offer you a new account without increasing its risk. Finally, you can suggest closing an unused existing account if it will result in approval for the new account.

Bottom line

While it's never guaranteed that you'll be approved for a credit card when submitting an application, keeping these tips in mind will only help your success rate. Credit cards can offer many benefits and rewards, so maximizing your chances will hopefully open up new credit card opportunities.

Read more: 3 ways a new credit card could increase your credit score

Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

8 ways to maximize your chances of being approved for a credit card - The Points Guy (2024)

FAQs

How do you increase your chances of being approved for a credit card? ›

A good credit score will increase your odds of being approved for a credit card as lenders like to see that you can manage an additional line of credit and make monthly payments on what you charge. You should always pay your credit card bills on time each month and try to pay them in full if you can.

Who is Ryan Wilcox the points guy? ›

Ryan is a former student journalist at The Daily Tar Heel. He has years of experience with writing, editing, fact-checking and copy editing content.

How do I increase my chances of getting a credit card? ›

Here are a few steps you can take:
  1. Check your credit. It can be important to know where you stand, so check your credit report and a credit score before applying. ...
  2. Pay off debts. ...
  3. Increase your income. ...
  4. Search for insights about lenders' policies. ...
  5. Take the opportunity to shop around. ...
  6. Try to get preapproved.
Oct 9, 2023

What are at least 3 ways you should use a credit card to maximize your credit score? ›

How to use a credit card to build credit
  • Pay on time, every time (35% of your FICO Score) ...
  • Keep your credit utilization low (30% of your FICO Score) ...
  • Limit new credit applications (15% of your FICO Score) ...
  • Use your card regularly. ...
  • Increase your credit limit.
Jul 22, 2024

What is the Chase 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.

What is the hardest Chase card to get? ›

Chase Sapphire Reserve®

A rating of 5 is the best a card can receive. Why it's one of the hardest credit cards to get: Chase Sapphire Reserve® is one of the hardest credit cards to get approved for by virtue of the fact that it is one of the best rewards cards on the market.

Did The Points Guy sell? ›

The acquisition of The Points Guy by Bankrate in 2012 for $20 million, and subsequently by Red Ventures in 2017, marked a significant shift. Red Ventures, a company specializing in “intent-based media,” focuses on directing potential spenders to their partners.

Who runs The Points Guy? ›

Brian Kelly is the founder of TPG, the leading voice in loyalty programs, points and miles, credit cards and travel.

What is The Points Guy app? ›

The Points Guy App is here to help you navigate that journey at every step -- using the best credit card for your spending habits, earning valuable points on every purchase, learning about loyalty programs and transfer partners, and redeeming your points at the best value for you, whether that's visiting family for the ...

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 credit card is the easiest to get? ›

Easiest credit cards to get approved for
  • Best for unsecured card: Capital One Platinum Credit Card.
  • Best for students: Discover it® Student Cash Back.
  • Best for no annual fee: Citi Double Cash® Card.
  • Best student dining card: Capital One SavorOne Student Cash Rewards Credit Card.

How can I increase my credit card without asking? ›

The second way you may get a credit limit increase is if a credit card company increases your limit without a request from you. This typically occurs after you've demonstrated responsible credit habits such as making on-time payments and paying more than the minimum payment required.

How can I raise my credit score 100 points 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%
Jun 26, 2024

What boosts your credit score? ›

If you want to improve your score, there are some things you can do, including:
  • Paying your loans on time.
  • Not getting too close to your credit limit.
  • Having a long credit history.
  • Making sure your credit report doesn't have errors.
Jul 2, 2024

How do I raise my credit score 40 points fast? ›

How to build credit fast
  1. Pay credit card balances strategically. ...
  2. Ask for higher credit limits. ...
  3. Become an authorized user. ...
  4. Pay bills on time. ...
  5. Dispute credit report errors. ...
  6. Deal with collections accounts. ...
  7. Use a secured credit card. ...
  8. Get credit for rent and utility payments.
Mar 26, 2024

Which bank approves a credit card easily? ›

Comparing the easiest cards to get
Card NameAnnual feeFICO score required
Bank of America® Unlimited Cash Rewards Secured credit card$0No credit history
Capital One Platinum Secured Credit Card$0No credit history
Indigo® Mastercard®$0-$99 depending on creditworthiness300 to 670
Capital One Platinum Credit Card$0580 to 740
3 more rows
Jun 28, 2024

What factors determine credit card approval? ›

Credit score
  • Payment history.
  • Credit utilization rate.
  • Length of credit history.
  • New credit.
  • Credit mix.

How can I speed up my 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.
5 days ago

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