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Ten things credit card providers look for

There are hundreds of options to apply for a card (credit) online; however, just an online application does not cut it. Documents have to be submitted, which are verified and then you can apply for the credit card online.

When applying for a credit card online, you will also need to tell about your income, credit score, reducing your debt, and you do not need to simply apply for the first offer that you get. However, before you apply for a card credit online, pay attention to how much you owe, your travel habits, your spending habits, etc., in case you were to fall into a financial whirlpool later. Listed below are few great credit cards you can choose to apply for

  • Capital One Venture Rewards Card
  • Chase Sapphire Preferred Card
  • Citi Double Cash Card
  • Chase Freedom
  • Blue Cash Preferred Card from American Express
  • Chase Slate
  • Capital One Quicksilver One Cash Rewards Card

How to get approved for applying for a credit card online?
It is the FICO scores that determine a person’s creditworthiness. After the recession, the rules to apply for a credit card online has been relaxed so much that anyone could get hold of one or more cards. Now, however, stricter rules are being followed for the betterment of the citizens.

Ten things credit card providers look for
Factors that credit card providers look for are employment status, ability to pay, willingness to pay, and FICO scores. Credit card providers become reluctant in giving precise metrics and cutoffs. They know what exactly the buyer is looking for. The most important is the payment history. They keep track of payment of other cards. The length of the card and the diverse types of cards held. Another factor is debt-to-credit ratio and debt utilization.

Credit card companies do not like people using more than one-third of their total credit. Never have one card maxed out and other two unused; spread the expenses over them evenly.

The new rules to apply for a credit card online require those under 21 to have co-signers unless they have a source of income and assets and can justify the credit line. They do not have to be parents and the income does not have an income threshold. The new card Act does not allow freebies at the college campus. They can redeem gifts online from the points collected. If you are earning a living, you can get in touch with a banker and sign up for a checking account. If your credit score is low, then this is the safest way to get a card. The better the relationship you have with the bank, the better deal you will get from the bank.

Payment history
Applicants with a clean record of paying on time are likely to get approval for new cards.

Checking account
Set up a checking account with the same bank improves your chances of getting approved for a card.

Debt utilization rate
Try to use just one-third of your available credit.

A co-signer is required if you are under 21 and don’t have an income to support a card on your own.

Individual credit lines
A high amount of debt on one card is frowned at even if things improve your chances of getting a third card. Ensure to use only one-third of the credit.

Non-credit bills
Pay your bills other than those of the card on time. Pay loans, utility bills, etc. as not doing so may also hurt your score.

Large credit line
Card providers like to see large credit lines. Try and extend yours, if it reduces your utilization 25% to 30%.

Card consolidation
Having too many credit cards can ding your credit score; try to limit yourself to three or four cards.

Diversity of credit
If you hold a variety of credit lines—credit card, store card, car loan, mortgage, installment loan—it can improve your credit score.

Length of credit
Issuers look for a long credit history, so make sure you start building credit early, no matter how small the line.

There are many credit cards available in the market and every card offer similar incentives. You have to check them out with a fine tooth and nail just to make sure the card is just right for you. Each card tries hard to compete with the other to offer similar and extra offers to keep the customer with them. There is just a minor difference between them.

Getting the best out of the card is when the card provider understands your needs by giving cash back, travel, reward points, balance transfer facility, etc. These all depend on your spending habits.

Best cards have a combination of offers like low-interest rate, high rewards, large bonus, etc. The card that is good for you may not be good for someone else. The best cards have a combination of features. Treat your card like you would your cash.

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