How to get approved for a credit card

Credit card issuers typically look at factors like your credit scores, your income and the amount of debt you have compared to your income when making lending decisions. Showing you can manage credit responsibly over time can help improve your chances of being approved for a credit card. 

There are steps you can take before you apply to help your chances of approval. And with Capital One, you can see if you’ll be approved with 100% certainty before accepting a card offer—with no impact on your credit scores. 

What you’ll learn:

• Using credit responsibly and practicing good financial habits are important before and after you apply for a credit card because they can help you build or maintain good credit.

• Lowering your debt-to-income (DTI) ratio could help show lenders you’re able to manage monthly payments.

• You can check for guaranteed credit card offers without hurting your credit scores. 

• A secured credit card might be easier to get approved for than a traditional, unsecured credit card.

Here are some things credit card issuers may review when they’re deciding whether to approve a credit card application.

• Credit reports and scores: Credit scores are calculated using information from credit reports. And issuers may look at both when assessing an applicant’s creditworthiness.

• Income: Issuers are required by law to check that applicants can afford a card’s minimum payments. That could involve asking about employment status and comparing income to debt to estimate DTI ratios.

• Previous and current accounts: FICO says issuers may consider current or past account activity. For example, if you already have a credit card that you’ve managed responsibly, that could help your chances of getting approved for a new card with the same issuer.

Here are five tips that could help you get approved for a credit card.

Knowing where your credit stands could help you narrow down your credit card options and ensure there are no errors that could negatively impact your creditworthiness.

Here are two ways to monitor your credit. 

• CreditWise from Capital One lets you access your credit report and credit score as often as you like. CreditWise is free, even if you’re not a Capital One customer, and using it won’t hurt your credit scores.

• You can request free copies of your credit reports by visiting AnnualCreditReport.com.

Using credit responsibly over time is the best way to improve your credit scores. Here are some ways to show personal responsibility with credit. 

• Pay on time. Payment history is the biggest factor in determining credit scores. Avoiding late credit card payments is a crucial part of building a positive payment history. 

• Pay off existing account balances. Paying more than the minimum amount due whenever possible can help you lower your balances faster, which may help lower your DTI ratio. Plus, it could also mean paying less in interest. 

• Stay below your credit limit. The Consumer Financial Protection Bureau (CFPB) recommends keeping your credit utilization ratio below 30% across all your revolving credit accounts.

Your DTI ratio is a snapshot of your income compared to your monthly bills and other debts. According to the CFPB, it’s “one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow.” 

You can calculate your DTI ratio by dividing your monthly debt payments by your monthly gross income.

You might be more likely to get approved for a credit card if you choose one that fits your credit profile. For example, credit cards with the most elevated rewards may require excellent credit scores. But there are options for people who are new to credit or working on rebuilding their credit, like secured cards and student cards.

Checking whether you have guaranteed card offers before you accept can help you avoid unnecessary hard inquiries. One hard inquiry will typically only lower your credit scores by a few points, according to FICO. But multiple hard inquiries in a short time period can have a more significant effect.

Capital One lets you see if you’ll be approved with 100% certainty before accepting a card offer. It’s quick and won’t hurt your credit scores. And if you’re eligible, you can accept your offer without filling out a separate application.

Check out these frequently asked questions about how to get approved for a credit card.

Before you submit a credit card application, checking your credit reports and scores, paying bills on time and keeping your credit utilization ratio low could put you in the best position. 

If you’re new to credit or searching for your next credit card, Capital One can help. 

• See if you’ll be approved for Capital One credit cards with 100% certainty and no harm to your credit scores. 

• If you’re looking to build your credit with responsible use, explore cards for people with fair credit. 

• Earn unlimited cash back on every purchase, every day, with a cash back rewards card. 

• Monitor your credit report and score with CreditWise. It’s free, and using it won’t hurt your credit scores.