Getting approved for a credit card

It is a fact of modern life that credit cards are an increasingly essential financial tool. There are many situations in which if you do not have a credit card, you will either be unable to pay for goods and services, or to take up special promotions. There are also countless more situations when having a credit card will simply be extremely convenient. Credit cards are also safer than carrying large amounts of cash around with you, especially when you travel.

Criteria

Well, first of all you should be over 18 years of age. You will also need a job or some form of regular income. These are then main criteria and if you can demonstrate them well, you will probably not have much trouble getting approval. You may have had a card in the past that you failed to pay or some other blemish on your credit report. If this is the case, you will find it more difficult to get a card.

Credit Rating

Your credit history plays a very significant role when it comes to assessing who will be approved for credit and who will not. It is based on personal information, your salary, if there have been defaults or court judgments awarded against you, and a host of other factors. They are all put into an equation that computes a personal score for you. Lenders will then decide whether or not to lend to you based on this score.

You should also be aware that many other companies will use your credit report also. It is not only credit companies, but also insurance companies and even employers, when looking at job applicants. This may seem surprising but the thing to remember is that you do not want to damage your credit report by failing to meet repayments.

Refused Application?

If you are finding it difficult to get approval for a credit card, you may consider seeking a co-signor. This is someone, usually a parent or close relative, who will guarantee the debt for you. They must understand the nature of the agreement, and if the situation arises whereby you are not able to make your repayments, they will become fully liable for the amount you have borrowed. It may also be a good incentive for you to repay it.

The final thing to remember is that if you have been turned down for a credit card, it may be an indication that you are not ready for one.

Joseph Kenny is the webmaster of the UK credit card comparison site http://www.creditcards121.com/, where you can find a selection of credit card advice. For US visitors there is also the comparison site http://www.credit-cards-info.com/ for all US interest free offers.This article is free for republishing
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