How to Increase Your Chances of Credit Card Approval - NerdWallet (2024)

MORE LIKE THISCredit CardsLow-Interest and No-Annual-Fee Credit CardsApplying for a Credit CardCredit Card Resources

Amid the COVID-19 pandemic and recession, many Americans are struggling to pay their bills — and as a result, credit card issuers are pulling back on the available credit they are offering consumers. That means not only is it harder to get approved for new credit cards, but cardholders are seeing credit limits on their existing cards slashed, too.

“Lenders are being proactive by lowering limits and increasing score requirements so they are protected from a spike in defaults and losses,” says John Ulzheimer, a credit expert. He adds that even consumers with good credit are seeing their credit limits cut, and that he personally has had the credit limit lowered on two cards in the last month or so.

Still, even in this climate, there are ways to increase your chances of maintaining easy access to credit, starting with these five steps:

Work on your credit score

Credit card issuers are trying to reduce their own risk by doing what is called a “flight to quality,” Ulzheimer explains. That means they are trying to shift their business to consumers with higher credit scores whom they deem less likely to default on their credit card payments. “When you increase credit score requirements, the risk of your new customers defaulting or missing payments is less,” he says.

Consumers with good credit scores (typically FICO scores of 690 and up) are not totally immune to the recession’s impact on credit limits, but they tend to be the last ones to have their credit limits lowered and the most likely to still qualify for a loan or credit card, Ulzheimer says.

If you're eyeing a credit card but you have less-than-good credit, focus on your credit scores: Make on-time payments each month, keep your credit utilization rate below 30% or so, and keep any older credit cards open to lengthen your credit history.

Ready to earn your first $100 in rewards?

Nerdwallet+ members can earn $100 in rewards by paying their first bill on time with one of these eligible credit cards.

GET STARTED

How to Increase Your Chances of Credit Card Approval - NerdWallet (1)

Consider different cards

Not all credit cards require good to excellent credit; in fact, some cards are geared toward consumers who are still building their credit. In general, cash back and travel rewards cards require good to excellent credit even in normal times, and especially so during the COVID-19 crisis.

So if, for example, you have poor credit (FICO scores of 629 or below), it can make more sense to apply instead for cards targeted toward people with bad credit. These cards often make it possible to improve your credit over time so you can qualify for better cards down the road.

» MORE: Why it's so hard to find a balance transfer offer right now

Apply for a secured card

Secured credit cards can also help people build credit: You put down a certain amount of money upfront, and then you can spend up to that amount on the card.

Like cards targeted toward people with bad credit, secured cards also make it possible to build your credit over time.

» MORE: NerdWallet’s best secured credit cards

Wait it out

At a time when so many travel and entertainment limitations are still in place, maybe you don’t need a new rewards card or travel card?

Instead of applying for new cards now when so much is in flux, it may make sense to wait out the current recession if you're able to (while still doing things to build your credit, of course).

You may end up with more options later.

How COVID-19 is affecting credit card customers

How credit card issuers are respondingWhat kinds of credit card relief can you request?What to know before accepting COVID-19 credit card reliefIf credit card relief's a no-go, check out debt managementFood delivery options and how your credit card can help 3 ways a credit card can help you ride out a crisis7 credit card 'rules' you can break in an emergencyCOVID-19: What to keep in mind with credit card bill paymentsWhy it's harder than ever to find a balance transfer offer right nowHow to avoid waiting on credit card customer service lines3 ways to keep your distance with contactless payments

Monitor the market

Even during this recession and global pandemic, credit card issuers are launching new products and tweaking existing ones. Your future favorite card might not even exist yet. So keep an eye on new cards hitting the market and the changes being made to the ones currently available.

That way, you’ll be ready to apply for the card you want once life starts to inch back to normal.

» MORE: If you need credit card relief, know the options and risks

How to Increase Your Chances of Credit Card Approval - NerdWallet (2024)
Top Articles
‘Technoblade,’ a star Minecraft gamer on YouTube, dies of cancer at 23
Technoblade, 'Minecraft' YouTube creator, dies aged 23
Wym Urban Dictionary
Petco Clinic Hours
Goodwill letter success! **UPDATE** new scores: EX 782; EQ 764; TU 769 no more baddies!
Dyi Urban Dictionary
Edgenuity Answer Key Algebra 1 Pdf
Kiwifarms Shadman
Unveiling The Voice Behind Maui: The Actor Behind The Demigod
Calvert Er Wait Time
Craigslist Pets Longview Tx
Savannah Rae Demers Fanfix
6023445010
303-615-0055
BugBitten Jiggers: a painful infestation
Unblocked WTF, UBG9 Unblocked Games, UBGWTF Games, Unblocked WTF, WTF Games Unblocked
9xMovies: The Ultimate Destination for Free Movie Downloads
Taxi Driver Kdrama Dramacool
What Time Is First Light Tomorrow Morning
Solar Smash Secret Achievements List 2023
Evertote.ca
Liquor Barn Redding
Emerge Ortho Kronos
Staar English 2 2022 Answer Key
Www.publicsurplus.com Motor Pool
Kaelis Dahlias
Rugged Gentleman Barber Shop Martinsburg Wv
Couches To Curios Photos
2014 Chevy Malibu Belt Diagram
Ring Of Endurance Osrs Ge
Top 10 Best OSRS Ranged Weapons (Bows + Crowssbows) – FandomSpot
Craigs List Skagit County
Target Savannah Mall Evicted
Oklahoma Craigslist Pets
Shipstation Commercial Actress
Autozone Cercano
Brooklyn Park City Hall
Myapps Tesla Ultipro Sign In
Fcs Punting Stats
Craigslist Covington Georgia
Aid Office On 59Th Ashland
Directions To 401 East Chestnut Street Louisville Kentucky
How Much Does Costco Gas Cost Today? Snapshot of Prices Across the U.S. | CostContessa
Tyson Foods W2 Online
Stellaris Archaeological Site
Best Drugstore Bronzers
Trinity Portal Minot Nd
Siswa SMA Rundung Bocah SD di Bekasi, Berawal dari Main Sepak Bola Bersama
Jili Game Cityjili
Konami announces TGS 2024 lineup, schedule
The Ultimate Guide to Newquay Surf - Surf Atlas
Dragon Ball Super Super Hero 123Movies
Latest Posts
Article information

Author: Stevie Stamm

Last Updated:

Views: 6159

Rating: 5 / 5 (60 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Stevie Stamm

Birthday: 1996-06-22

Address: Apt. 419 4200 Sipes Estate, East Delmerview, WY 05617

Phone: +342332224300

Job: Future Advertising Analyst

Hobby: Leather crafting, Puzzles, Leather crafting, scrapbook, Urban exploration, Cabaret, Skateboarding

Introduction: My name is Stevie Stamm, I am a colorful, sparkling, splendid, vast, open, hilarious, tender person who loves writing and wants to share my knowledge and understanding with you.