How to apply for a credit card

Whether you’re looking for your first credit card or thinking of swapping your current card for a new one, applying for a credit card takes a bit of planning. While the credit card approval process might seem daunting to beginners, simply being prepared and picking a card that fits your credit profile can get you to a successful result.

This credit card application guide will explain how to choose the best credit card for your situation and how to apply for a credit card when you’re ready.

What to consider before applying for a credit card

Before diving into how to get approved for a credit card, you’ll want to determine which credit card best suits your needs. Relevant factors include your credit profile, spending habits and financial goals.

Know your credit scores

A credit score is a snapshot of your creditworthiness — it signals to lenders how likely you are to repay money you’ve borrowed. Your credit scores are based on the information found in your credit reports, which detail things like your payment history, recent credit inquiries and the amounts you owe other lenders.

The two most common credit scoring models in the US are the FICO Score and VantageScore. Each weighs the data on your credit report differently to calculate your credit score, which is a three-digit number typically ranging from 300 to 850.

FICO classifies its credit scores into the following ranges:

• Poor: 579 and below
• Fair: 580 to 669
• Good: 670 to 739
• Very good: 740 to 799
• Exceptional: 800+

And VantageScore organizes its credit score ratings as follows:

• Very poor: 300 to 499
• Poor: 500 to 600
• Fair: 601 to 660
• Good: 661 to 780
• Excellent: 781 to 850

It’s easy to check your credit score online. Most major banks offer a free credit score through their online platforms, and programs such as Capital One CreditWise and Chase Credit Journey allow you to check your score even if you’re not a customer. You can also get a free credit score every month from the credit bureaus Experian (FICO Score) and Equifax (VantageScore).

Checking your credit scores before choosing a credit card will help you narrow down your options and avoid applying for a card you’re unlikely to get approved for. Many of the best credit cards require at least a good credit score to qualify. That said, there are plenty of cards geared to folks with lower credit scores. By opening and using one of these cards responsibly, you can improve your credit score over time — one of the many potential benefits of getting a credit card.

Know what you want from a credit card

You’ve probably seen bank ads promoting massive sign-up bonuses and flashy benefits enticing you to apply for a new credit card. But just because a card gets celebrity endorsements doesn’t necessarily mean it’s a good fit for you.

Evaluate what you hope to get from a new credit card, whether it’s rewards, travel perks or even a path to paying off other credit card debt with an introductory balance transfer offer. If you want to earn rewards, do you prefer the simplicity of cash-back credit cards, or would you rather maximize your earning potential with a card that earns flexible points? And if you’re looking for premium benefits, are you willing to pay an annual fee?

You’ll also want to assess your financial habits. For example, a tempting sign-up offer isn’t worth pursuing if you can’t meet the minimum spending requirement to earn it. Look beyond the initial bonus, too — if you spend a lot on groceries and gas, for instance, a card that earns more in these categories could put more rewards in your pocket over the long term. Or if you think you might carry a balance, a no-frills card that charges a lower interest rate may be a better fit than a pricier travel-specific credit card.

Know your credit card terms and conditions

Be sure to familiarize yourself with the fine print of any credit card you’re considering. Issuers typically highlight a card’s benefits and rewards prominently in their advertising, but getting to the full offer details requires a bit of digging.

Online applications should include a link to “rates and fees,” “pricing and terms” or something similar, which takes you to the card’s terms and conditions. Click through to find key card details, including annual percentage rates and fees.

On top of the card’s terms and conditions, check for any application restrictions beyond a minimum credit score that could affect your chances of approval. Some issuers limit the number of cards you can get in a certain timeframe — for example, Chase’s 5/24 rule generally restricts applications from those who’ve opened five or more card accounts from any issuer in the past 24 months. Other cards may be geared toward applicants who have an eligible account with the bank or — in the case of student credit cards — require applicants to be enrolled in a post-secondary institution.

How to get a credit card

Once you’ve decided on the card that best suits your needs and you’re ready to apply, collect the information you’ll need to start your application. Most issuers allow you to submit a credit card application online, although in some cases you can apply in a bank branch or by phone.

Here’s what you need to do to apply for a credit card.

Gather your documents

At a minimum, you’ll want to have the following information easily available before you apply:

• Your full name and date of birth
• Mailing address
• Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
• Email address and phone number
• Employment status
• Gross annual income
• Housing status and/or monthly rent or mortgage payment

Some card issuers may ask for additional details, such as your country of citizenship, estimated monthly spend or if you want to add authorized users.

Apply for a credit card online

Navigate to the application page for the credit card you want. Once you click through to the application, you’ll enter the required personal information. Take care to type in your details correctly — spelling errors or typos might cause your application to be denied or require additional time for the bank to consider.

You’ll also have the opportunity to review the offer details and card terms and conditions. This is an important step to double-check you’re applying for the card you want, especially considering some cards have similar names. For example, be careful not to confuse the Chase Freedom Unlimited® and Chase Freedom Flex℠*, or the Blue Cash Preferred® Card from American Express and the Blue Cash Everyday® Card from American Express.

*The information for the following card(s) has been collected independently by CNN Underscored Money: Chase Freedom Flex℠. The card details on this page have not been reviewed or provided by the card issuer.

Once you’re satisfied with your credit card application, click the “Submit” button. Usually, a spinning wheel or message appears to indicate your application is being processed. Typically you’ll get one of three results:

• Your application is instantly approved. In this case, you’ll usually receive a follow-up email confirming your approval with more details about your credit limit, when to expect your card and how to set up your online account.
• Your application goes to “Pending approval” status. This can happen if the issuer needs more details or time to consider your application. Sometimes you may be asked to provide follow-up information via email or phone call before you can be approved.
• Your application is denied. The bank might immediately reject your application. The Equal Credit Opportunity Act requires the issuer to either tell you why you were declined or notify you of your ability to ask why you were denied. If the rejection is based on something in your credit report, the issuer will tell you the credit score it used in making its decision.

Even if your application is denied, there are steps you can take to potentially change the bank’s decision. Most major issuers have phone numbers known as “reconsideration lines” that you can call with more information or corrections to your application that may, in turn, get you approved. But if your rejection was because of a low credit score, insufficient income or too much debt, a reconsideration call likely won’t help.

How to boost your chances of approval

Working to increase your credit score by paying your bills on time and reducing your debt is a good long-term approach that can help you get the credit card you want. Avoiding lots of card applications in a short period is also a good idea, since every hard credit inquiry (sometimes called a hard pull) will typically cause your score to drop slightly.

But in the short term, there are a few quick strategies that can improve your chances of getting approved for a credit card.

Check for pre-approved credit card offers

Many issuers offer pre-approval tools on their websites that allow you to enter a few personal details and, without a hard credit inquiry, let you know if you’re pre-approved for certain credit cards. Some issuers send out pre-approved or pre-screened offers via email or snail mail as well.

Major banks that offer online pre-approval include:

• American Express
• Bank of America
• Capital One
• Chase
• Discover

Not every card from each issuer is eligible, and there’s no guarantee you’ll be approved even if you pass this step. That said, a pre-approval gives you a good idea of your chances and can save you time and frustration in the application process.

Consider cards for no credit, bad credit or fair credit

If you apply for a credit card that requires good-to-excellent credit but your score is only in the fair range, it’s likely your application will be denied. Instead, focus your attention on cards geared toward consumers with lower credit scores. Some credit cards for bad credit even earn rewards.

If you have no credit or are rebuilding your credit after financial mishaps, you still have options. Secured credit cards, such as the Discover it® Secured Credit Card and Capital One Quicksilver Secured Cash Rewards Credit Card, can be much easier to get approved for. They require you to put down a refundable security deposit equal to your credit line, but after showing a history of on-time payments and responsible credit use, you may be able to convert to an unsecured credit card and get your deposit back.

Get an authorized user card

One way to fast-track improving your credit score is by becoming an authorized user on a friend or family member’s credit card account. The account — and its history — will appear on your credit report and potentially help boost your score. This only works if the account holder has a good credit score and positive account history; you wouldn’t want to become an authorized user on the account of someone who pays their bills late.

Parents with minor children can use this strategy to develop their kids’ credit histories before they become adults. That way, when the child turns 18, they’ll already have a good credit score and a decent shot at getting approved for the best credit cards.

*The information for the following card(s) has been collected independently by CNN Underscored Money: Chase Freedom Flex℠. The card details on this page have not been reviewed or provided by the card issuer.