Getting pre-approved for a credit card is a great way to protect your credit. Applying for a credit card can be as easy as choosing one of the best rewards credit cards and filling out a short form online. But getting approved for the card you want may be trickier, even for an experienced credit card owner. It pays to think through your application strategy.
Follow these steps to get approved or pre-approved for the credit card you want.
1. Check Your Credit Score
A credit score measures your creditworthiness, usually on a scale from 300 to 850, where a higher score is better. Two companies measure your credit. FICO, which considers a score of 670 to 739 as good, and VantageScore, which considers a score of 661 to 780 to be good. Major banks, credit card companies, and credit unions often provide a free FICO score to their customers. If you can’t find a FICO score there, you may access one for free at the credit bureau Experian. Remember: checking your FICO or VantageScore will not lower your credit score.
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2. Choose a Credit Card that Meets Your Needs
Once you know your credit score, you will have a realistic idea of how to choose a credit card for you. For those with excellent credit, you will have more options, like cashback and other rewards cards.
Even if you have bad credit or are a student, you can still identify cards that will help you build your creditworthiness. Students may even qualify for rewards cards. If that interests you.
For those hoping to get out of credit card debt, consider a balance-transfer credit card.
Finally, you should take action if your credit score is below 670 on FICO or below 661 on VantageScore. A low credit score will limit your credit card choices and penalize you if you apply for a mortgage or car insurance. We've outlined six proven ways to boost your credit score.
3. Pause before you apply
Don't cut up old cards. Before you apply for a new card, think through your strategy for any existing cards you may have. Even if you don't want to use them, it's in your interest to keep old credit cards active.
The Chase 5/24 rule. If you own a few cards offered by Chase, be aware of the 5/24 rule. Chase will not issue you a new card if you exceed five new cards in a 24-month period.
Dynamic pricing. If you have good to excellent credit, you may qualify for some pretty sweet sign-up bonus offers worth hundreds, even thousands of dollars. American Express cards often vary the amount of welcome points in online offers. You may get offered 60,000 free points on one site and 75,000 on another. Try searching for the card in an incognito window, and you may score a higher welcome offer. To open an incognito window from a Chrome browser, click on the three vertical dots in the top right-hand corner of your screen. Click on "new incognito window," which is the third option. Enter your search terms in that window.
4. Get Pre-approved or Pre-qualified for the Card You Want
Once you have your eye on a card that is within reach of your credit score, you’ll want to maximize your chances of approval. Why? Every time you apply for a new credit card, the bank issuing the card will request your credit report (called a “hard inquiry” or a “hard pull,”) which will lower your FICO or VantageScore by a few points. So, if you apply for a card and are turned down or decide you want a different card, you will have to reapply with a lower credit score.
There are two ways to avoid a hard pull when applying for a credit card: pre-approval or pre-qualification. Each method assures the bank offering the card you want that you are sufficiently creditworthy. When a bank sends credit card offers, often by email or regular mail, they have usually pre-approved you for that card. If, by serendipity, it is the card you most want, then you only have to fill out the application.
For cards not offered to you, the issuer may be willing to check if you qualify for the card before you submit a formal application. Contact the bank or credit union issuing the card and ask for “pre-qualification with no hard inquiry.”
If you're applying to an American Express credit card, look for the "Apply With Confidence" button to get pre-approval with no ding to your credit score.
You can also use the CardMatch tool (see below) to see a list of credit cards available to you, without affecting your credit score.
CardMatch doesn't partner with every credit card issuer, so you may want to check the bank or issuer's website. For example, the Apple Card does not access your credit report until you accept the sign-up terms.
5. Become an Authorized User if You Need a Credit Boost
If you are brand-new to the world of credit or trying to repair a poor credit history, you may want to become an authorized user on someone else’s credit card account. This arrangement usually occurs between a parent with good credit and a child or young adult. The parent’s longer credit history and positive credit score are essentially shared with the child. By the same token, missed payments or other negative credit information are shared by both account owners, so avoid this option if there is any doubt about either party’s ability to use credit wisely and pay bills on time.
6. Fill out the Application Form
The fastest way to fill out an online application form at the bank’s website. Forms will typically require your legal name, date of birth, address, annual income, and social security number. You may also be asked about your monthly rent or mortgage payments.
Answer all questions truthfully. If you lie about your income, for example, you may be charged with credit card fraud.
Enjoy Your New Credit Card
If you followed the steps above, you are likely to soon be approved for your new credit card. Make sure you keep track of the balance on your account, note any suspicious activity, and pay your bills in full and on time. Doing so will help boost your credit score and make you eligible for the best credit cards available.
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