Here’s How to Increase Your Chances of Getting Your Credit Card Application Approved!

Ever since the pandemic broke out, unemployment has increased at unprecedented levels. To cope up with unemployment issues, banks have even granted relief to its customers in terms of EMI payments and loan repayments.

So, if you’re planning to apply for a credit card, you would probably wonder whether or not it will be possible to get approval on it anytime soon. Well, here’s the good news - there are specific requirements that lenders have put across. If you can meet them all, your chances of getting approval on your credit card application can increase significantly. Read on to know them:

1- Credit card dues must be paid on time
The single most important determinant of your credit score is your payment history. This means, it is essential to ensure that you repay your dues on time (or early). This is one of the most significant rules that borrowers must adhere to, and it applies to a range of credits, including loans, mortgages, or any other utilities. Always remember - having a good credit score increases your chances of getting a quick approval on your credit card application.

So, the next time you think that a late payment wouldn’t hurt that much, think again. According to research, a single late payment can devastate your credit score and knock off at least 90 to 110 points. That said, it sure is a lot of damage for a single payment you forgot to make.

2- Got debts? Pay them already!
While it may seem quite impossible to pay down debt right away, it certainly is another step that could improve your chances of getting approval on your credit card application. The question is, how does it work? The second most essential factor that makes up your credit score is the amount of debt you currently have as far as your credit limit is concerned.

That means, although obtaining a new line of credit can contribute to reducing your credit utilization by simply increasing the amount of credit available. However, if you have a high utilization rate before applying for a new credit card, it will not help your case.

3- Hold on to your jobs!
Credit card issuers would want to know your employment situation when you’re applying for a new card. You will also have to prove that you can readily repay your dues. In fact, you are bound to have a much better shot at getting approval if you have maintained employment even during times of a heightened financial crisis caused by the pandemic.

4- Always monitor your credit score
Monitoring your credit score is very important. For instance, if you have an IDFC FIRST Bank credit card, make sure you monitor it regularly. All you have to do is visit the official CIBIL website and get your credit report for free. Then, ensure that you’re watching it for any changes as you make your moves to improve your credit score. In addition to this, know that having a credit score between 700 to 900 gives you the best chance at being approved for a new credit card. Additionally, if you’re looking for a credit card, apply online at IDFC FIRST Bank. When you choose trusted, reputed and renowned banks, you make a safe choice for yourself. It’s contactless, secure and assures quickest approvals.

5- A healthy mix of credit
Having a higher concentration of secured loans (home loans) can prove to be more favourable as far as your credit score is concerned. Know that even though unsecured loans allow borrowers easy and convenient access to credit, it still is one of the most expensive forms of credit. This means, with an increased number of unsecured loans with high utilization, your payments become larger due to a high-interest rate.

Lastly, irrespective of which bank you choose to apply for a credit card, ensure that you consider the reviews of its customers. For instance, if you are choosing IDFC FIRST Bank, ensure that you go through IDFC FIRST Bank reviews before making any decision.