improve acceptance rate

How to Improve your Chances of getting Approved

Applying for a credit card can be a very fearful experience for some, especially those who have been denied in the past, or previously had a bad credit score. But, it doesn’t have to be, if you know how to go about improving your chances of being approved for financing. So, when the time comes for you to apply for a credit card, or loan, consider a few of these things you can do to increase your chances at being approved.

Monitor your score

If you don’t, others will. There are many credit thieves, and there may even be delinquent records on your credit score which aren’t accurate. If there are faulty balances, or if there are inquiries on your credit score you didn’t make, report them. Doing this not only instantly increases your score, but also proves you are a responsible buyer or applicant to the credit companies you want to receive credit from.

Minimise balances

Try to keep your open lines of credit as low as possible. If you have a card with £500 limit and another with £2500, try to keep your rotating credit lines down. Make sure you keep balances as low as possible, especially at the time of application. This will show you are responsible, pay your bills on time, and that you don’t over utilise credit cards, when you don’t have to.

Maintain open credit

Many people assume once they pay off a card they should close the account; this isn’t true. Credit companies and lenders like to see open, steady lines of credit. Maintain open cards, even if you don’t spend with them or use the lines of credit you have. It shows consistency, it shows you are responsible, and it shows you are a borrower that is going to repay on the accounts you do have open with lenders.

Don’t overspend

Order lower value items with credit cards. Show your creditors you pay regularly. Doing this helps minimise the amounts you do owe to the lenders you have accounts with, and also increases your chances of being approved.

Pay on time

This is probably the biggest factor in maintaining a positive credit score and rating. If you can, pay early, and always pay more than the minimum you owe on accounts. This shows lenders you are responsible, you won’t take advantage of the card, and you are not going to overspend on the open accounts you do have with a particular credit company or card.

There are many things you can do to ensure you keep your credit score high and increase your chances of being approved when the time comes for you to apply for a new account. So, before you go applying for dozens of cards, do these things to monitor your score. Not only will you increase your score a few points before applying, you’ll also increase the chances of being approved for higher limits when the time comes to apply for a particular card or loan with different companies.