There is no exact credit you need to get approved for a credit card.
When choosing a number, I’d say you might have difficulty getting a credit card if you have a FICO score or VantageScore value less than 600.
This is more complicated.
When you ask this question, you must first understand some important things:
Credit decisions are not just based on one of your credit ratings
You do not just have a credit score
Depends on the card you are applying for – different credit cards require different approval requirements
Credit decisions are based on more than one credit score
There is no magic “credit card score” that allows you to be approved for all credit cards when you are over it, and for all cards when you are under it.
A lender will consider several key factors when applying for credit. These may include:
1. One of your credit ratings:
The lender can use a credit rating to filter, for example, people with a bad credit rating. However, this is not the only factor in the decision. Did you know that you have more than one credit score? The next section will talk more about it.
Your Credit History:
While a credit score can be considered, lenders will review one or more of your credit reports to make sure you have a history of timely payments. Depending on the card you have requested, the issuing bank may wish to receive several years of punctual payments. A credit report gives the lender a more detailed picture of your financial history than a single credit score.
This does not apply to credit reports, but loan applications always ask how much you earn each year. The credit card issuer wants to make sure that you have a stable income before you extend a line of credit. In some cases, the bank requests additional documents, such as tax returns, to support the annual income that you write in the application. Your income can be an important factor in the issuer’s credit limit.
Your monthly housing costs:
Credit card applications often ask for your housing
whether you rent or own and how high your monthly payment is. If your monthly housing costs seem high relative to your income, it may cause a bank not to invite you for new loans or factors.
The importance of understanding the difference between a credit score and a credit report.
Here is an example where this difference is important: Most credit valuation models only consider hard requests from the past year. However, loan requests from the last two years are included in your credit reports.
Some lenders have rules for rejection based on the number of new accounts you have opened in the last two years. Even if you have credit memos that are more than a year old and are not included in your credit results, a lender may still reject you depending on how many requests you have.
Even if your credit rating looks good, a late payment or many requests for your credit reports may be a reason you are being rejected. Keep in mind that a late payment will remain in your credit reports for seven years. Therefore, it is important that you pay all your bills on time each month.
Alternatively, maybe you have a good payment history, but not much income. In this case, you may be eligible for a card but receive a low credit limit.
When you do not just have a credit score
You may have heard that people are talking about how important your credit rating is. However, actually, they talk about “your credit points”.
If you see “your credit rating” somewhere on your credit card statement, this is really “one of your credit scores.”
There are many different credit rating models, some of which are the most popular and widely used.
The loan requirements vary
Different credit cards have different credit requirements. You may be approved for one card but rejected for another.
In general, the lower your credit card debt and the more punctuality payments have been made with other accounts in the past, the more likely it will be for credit cards with the lowest interest rates, highest credit limits and best rewards.
Credit cards from retail stores are relatively easy to get, even if they have bad credit but have their drawbacks.
High-end credit cards, like the best travel credit cards, can provide the most benefits and rewards, but require excellent credit.
The only way to really know if you are approved for a credit card is to apply.
If you are rejected, you will receive a letter within 7 to 10 days justifying it. Many issuers also offer the opportunity to check if they are prequalified for one of their cards.
As long as you build a responsible loan, you will maximize your chances of being approved for a wider choice of cards.