John Mark
It’s almost unbelievable how easy it is to apply for a credit card these days. It seems like all you have to do is submit your information through an online form and wait for the credit card provider to finish assessing your application. However, credit card approval is not always a sure thing. Like all major financial milestones, getting a credit card requires proactive planning.
We put together this quick guide to help ensure your application’s approval.
Know your credit score.
Your credit score represents your creditworthiness. It’s what lending institutions use to determine your spending behavior and responsibility when it comes to repaying debt. While credit reports in the Philippines are not centralized, banks can either use their internal database or obtain information from external sources to determine how likely you are to make payments on time.
So if you’re unsure about your credit history, it may be better to put off your application until you can get your finances sorted out. Do your best to stay on top of your payments and avoid acquiring copious amounts of debt. Don’t forget that Loansolutions’ experts are always ready to provide free services and help get your finances in top order.
Take care of existing debt.
Of course, how much you already owe will be taken into consideration as well. Before approving your application, card issuers want to make sure your existing loans are not unreasonably high. The less debt you have, the better your credit score will be.
Make sure your credit utilization ratio—the total amount of outstanding balances on all your credit cards divided by the sum of your credit cards’ limits—is below 35%. If the ratio is much higher than that, come up with a plan for paying down your existing balance in the shortest amount of time possible.
Don’t say yes to the first option you see.
Keep in mind that each credit card application will influence your credit report. It’s not a good idea to jump right into the first offer you come across, no matter how appealing it looks. And before applying for a card with a promising sign-up bonus and a healthy reward structure, get to know its requirements first. Make sure the card issuer will find your credit score favorable. If you could use some assistance in finding a card that fits your preferences and offers credit card payment options at your own terms, get in touch with the experts at Loansolutions now.
Be transparent in your application.
Your credit report does not include one vital information: your overall income. Your credit score is certainly the best indicator of your creditworthiness, but you still need to provide information about your exact income so credit card providers can determine your debt-to-income ratio and assess your ability to keep up with regular payments. You can decrease debt or increase income to make sure this ratio stays low and thus boost your chances of getting approved.
The key here is to be totally transparent about your application. If you have a source of income other than your full-time job, include that on your application to improve the ratio. Just don’t go overboard and overstate your income.
Indeed, getting approved is not easy, but it’s certainly far from impossible. If you make sure your finances are in order, apply with a trusted credit card provider, and provide accurate information throughout the application process—you’re pretty much golden. Remember, if your application doesn’t get approved on your first try, that doesn’t mean you should call it quits and look for a less appealing offer elsewhere. Calling the credit card company for a reconsideration is certainly an option. Before you call, make sure you have a convincing argument as to why your application deserves a second look. And of course, don’t forget that a little politeness can go a long way.
Don’t hesitate to get in touch with us if you could use some help in minimizing debt and improving your credit score.
