You’re ready to apply for a credit card—a powerful financial tool that can build your credit and buying power. And one of two things will happen when you apply: You’ll be approved or denied. But here’s the scoop: You’re in control of everything card issuers use to make that decision.
So if you’re wondering how to get approved for a credit card, the answer is pretty simple: You need to align your credit with the right credit card, and then be willing to do a bit of legwork to improve your credit if you’re not approved right away. And don’t worry—we’ll guide you through the process in six basic steps.
How to get approved for a credit card in 6 steps
1. Determine your credit score
The most crucial factor issuers look at is your credit score, which is a number that tells lenders how likely you are to pay back a debt. This number is calculated using information in your credit report, including:
- Payment history: Your record of on-time payments.
- Amounts owed: Your total debt and how much of your current revolving credit is in use.
- Credit history: How long you’ve had credit.
- Credit mix: The types of credit you have, such as revolving credit and installment loans.
- New credit: The number of times lenders have looked at your credit in the past year.
There are two major agencies that produce credit scores: FICO and VantageScore. FICO scores range from 300 to 850, with higher scores indicating greater creditworthiness.
- Excellent: greater than 800
- Very good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: less than 570
VantageScores also range from 300 to 850.
- Excellent: greater than 781
- Good: 661 to 780
- Fair: 601 to 660
- Poor: 500 to 699
- Very poor: 300 to 499
You can check your FICO score for free through FICO and Experian. Some issuers provide free access to your FICO score if you already have a credit card. Discover, Citi, and Wells Fargo all offer free FICO score access to eligible cardholders.
If you want to access your VantageScore, you can do so with a Capital One, Chase, or American Express credit card.
Though your credit score is the most important factor that issuers evaluate, they’ll also look at other factors like your debt-to-income ratio, monthly mortgage or rent payments, and whether you already have a relationship with the bank.
“We're required to calculate the ability to pay the loan off, and if that income is low, and your debt is high, then your likelihood of getting approved is going to be lower,” says Christopher Fred, EVP, head of US credit cards and unsecured lending at TD Bank.
2. If needed, focus on improving your credit score
Though credit card issuers don’t publicize what credit scores are needed to get approved for certain cards, typically, the higher your credit score, the more likely you are to be eligible.
Since your payment history and credit utilization ratio are among the most heavily weighted factors in your FICO score and VantageScore, you’ll want to make your payments on time and in full on your existing cards and keep your credit utilization ratio low.
Generally, experts recommend maintaining a credit utilization ratio of less than 30%, so if your card issuer extends you $10,000 worth of credit, you should aim to use less than $3,000.
Also, try to limit the number of cards you apply within a short time frame. When you apply for a credit card, issuers look at your credit report, triggering a hard inquiry. Hard inquiries negatively impact your credit score and can stay on your report for up to two years—though FICO only uses hard inquiries to calculate your score for up to one year.
3. Figure out the kind of credit card you need
You’ll want to look for a credit card that aligns with your spending habits and that you’re likely to get approved for based on your credit score.
For example, cardholders with no credit history or a poor credit score are more likely to get approved for a secured card than a luxury card.
These are just some of the many different types of credit cards on the market:
Secured cards
These cards require cardholders to put down a deposit to receive a line of credit. The deposit acts as collateral if the cardholder fails to make payments. Secured cards are best for those with little to no credit history or a poor credit score.
Student credit cards
If you’re a college student and don’t have a credit history, student credit cards typically have more lax eligibility requirements and lower credit limits than other credit cards. These cards may have a higher interest rate (since college students are usually considered more risky to lend to) and offer limited rewards.
Travel credit cards
Travel cards offer travel-related perks and rewards that can be redeemed for flights, hotel stays, and more. Rewards—usually miles or points—can be transferred to different airline and hotel partners. Typically, travel cards offer perks like access to airport lounges, different types of travel insurance, free checked bags, and more.
Business credit cards
Small business owners may use these cards to earn rewards on business-related spending or receive a higher spending limit. To qualify, applicants may need to answer questions about their business.
Cash-back credit cards
Unlike travel credit cards, cash-back credit cards offer rewards that can only be redeemed for a statement credit, cash, and gift cards, but usually not travel. These cards usually offer fewer perks than travel credit cards.
4. Check for pre-approval
Check if the issuer offers pre-approval once you’ve found the credit card you want to apply for. While applying for a credit card can ding your score, pre-approval triggers a soft credit check, allowing you to see if you’re a good fit for a card without harmng your credit score.
Issuers like Capital One and Discover offer online pre-approval forms.
You may also receive pre-approval offers from issuers in the mail. Even if you’re pre-approved, it doesn’t guarantee your eligibility.
5. Apply for a credit card
When you’re ready to apply for a card, you’ll need your personal information, like your email, Social Security number (SSN), annual income, and monthly housing payment.
When you enter your income, you may also include your partner’s income—as long as you have "reasonable expectation of access to it," which could boost your chances of approval.
Typically, you can apply for a credit card online, via mail, phone, or in person at the issuing bank or credit union
6. If you’re not approved, don’t give up
If your application is declined, you can request a reason for your rejection, and the issuer must comply within 60 days because of a law known as the Equal Credit Opportunity Act. Some card issuers will also mail you a letter stating why you were rejected, even if you don’t specifically request one.
While you can try to appeal the rejection with the issuer, Fred notes that these efforts are often unsuccessful.
Instead, you should focus on boosting your credit score or building your credit history.
By becoming an authorized user on a primary cardholder’s card, you can benefit from someone’s credit history without being on the hook for any payments. However, choose your primary cardholder wisely: If the primary cardholder is bad with their credit, it’ll harm your score too.
If you want to build your credit history, a secured card is a good option for cardholders with little to no credit history or a poor credit score.
The takeaway
If you’re not approved for the first credit you apply for, don’t fret. Whether you’ve been rejected because of existing credit card debt or a short credit history, improving your score and building your credit history is possible. You may need to prioritize paying off your debt or establish a credit history by signing up for a secured card.
