• 23
  • November
    2011

In our last post, we began to look at different ways you can improve your chances of being approved for a credit card. We noted that those who've been through bankruptcy or have a history of late payments may have a harder time getting approved. But there are a number of things you can do to improve your chances.

In addition to making timely payments and minding the length and diversity of already-established credit and your debt-to-credit ratio, another thing to pay attention to is your employment status. Whether or not you are employed, and how long you've been employed is a somewhat newer factor credit card companies have begun looking at when reviewing applications. It is good to be aware of this if you are a job-hopper or haven't been at your job very long.

Credit inquiries are another factor. Every time you apply for a loan or a credit card, inquiries are generated. The bottom line here is that too many inquiries within a short period of time is considered a red flag for a credit card company.

All these tips aside, it is still the case that your credit score is a very important factor in whether or not your will be approved for a credit card. For the best cards out there, it will need to be at 700 or above. If you are below that amount, you may still be approved but you could be facing a higher interest rate.

To give yourself the best shot at these, make sure your credit report is accurate and do your best to be mindful of these tips.

Source: Fox Business, "High Credit Scores Guarantee the Best Credit Cards?, Heather Larson, November 16, 2011.