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How to Qualify For Your First Credit Card?

Credit cards are an excellent financial tool that makes your day-to-day life easier by enabling you to make transactions without worrying about the funds.

Applying for an instant credit card is easy, as card applicants can do it online. Get hassle-free approval by keeping these tips in mind.

Tips to Get Approval For Your First Credit Card

Here are some notable tips you can follow to get approval for your first credit card without any delays:

Maintain a High Credit Score

If you maintain a high credit score, your chances of getting a credit card increase manifold. Your credit score indicates your creditworthiness to the lenders. A higher score ensures that you are a reliable borrower and vice-versa. A score of 750+ is suitable for most credit card companies. You can get an instant approval credit card without delays and a high credit score.

You must track your credit report regularly to ensure no errors and discrepancies. Discrepancies can considerably reduce the credit scores of loan applicants and credit card borrowers. If you have a low credit score, you can use a few strategies to improve it and apply for a credit card.

A Clean Repayment Record

The lenders will check your repayment records before granting a credit card. Late payments, defaults, missed due dates, and even bankruptcy are factors checked for. Since on-time repayments help get this payment card quickly, always try to pay off whatever outstanding is there on the card to maintain a clean history of repayment, improving your credit score.

Employment Stability

Your employment status is another crucial factor in this regard. It usually indicates you are financially stable and capable of managing this payment card without fail. If you have a record of frequent job changes, there will be a negative impact on your employment status.

For self-employed individuals, credit card issuers consider the business vintage. The particulars of this parameter are different for each credit card issuer, and you need to meet them to get the payment card.

Monthly Income Requirement

Besides your employment stability, you need to have a monthly income to complete the repayment of the dues. You must ensure you are meeting the credit card company’s per-month or annual income requirements.

Since a high income ensures better repayment capacity, you can apply for the best lifetime free credit card and other cards with premium features.

Pay Attention to Your Debt-to-Income Ratio

The next tip is to pay attention to your debt-to-income ratio, which significantly impacts your eligibility for this payment card. Financial experts say this ratio must be at most 30% of your total income. The reason is that a high ratio suggests you already have financial commitments to take care of, which lowers your disposable income.

Maintaining a low debt-to-income ratio is ideal for increasing your chances of securing your first credit card.

Opt for a Secured Credit Card

Last but not least, opting for a secured credit card is an alternative option if you struggle to get approval for a credit card. Available against a deposit, preferably an FD, you can use it like a regular credit card and pay your dues on time. Doing it will improve your credit profile and make you eligible for a regular credit card.

Conclusion:

Hopefully, now you have an idea of how you can qualify for your first credit card. Remember these tips and plan ahead to avoid rejection or delays during the approval process.

Ahsan Khan
Ahsan Khan
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