Want to apply for unsecured and secured credit cards?
Ways that can increase your approval chances!
Whether you want to make a big purchase for your house or want to indulge in the casual shopping spree, there are a variety of secured and unsecured credit cards available in the market to make it extremely convenient for you.
However, without a solid credit history and proper income proof, the chances of rejection of your credit card application are high. Banks make sure to closely check and scrutinize the credit report, payment history of an individual, and detailed credit scores etc before sanctioning the credit card application.
What is secured and Unsecured Credit Card?
A secured credit card is, essentially, the one that has a cash collateral deposit attached to it, which is considered equivalent to the credit line for that particular credit card account.
An unsecured credit card is the one that has no collateral or cash deposit condition linked to it.
Factors impacting the approval chances of your credit card application
Below are some of the ways you can enhance your chances of getting your credit card application approved-
- Never delay in paying your dues
Whether you have a car loan running or an existing credit card, the first step towards making your credit history better and enhancing the chances of getting the credit card is to stick to the payment timelines of any existing loan or dues. Make sure not to default on any payment, EMI or dues of any kind.
- Limit your spending
One-way to build the credit history is by limiting your financial spending to a fixed amount per month. Remember, the more you use the Credit Card, the higher will be the dues, which in case of delay or non-payment, can negatively impact your credit score and limit the chances of getting a credit card.
- Healthy Credit Utilization Ratio
One of the important rules of credit card spending is maintaining a healthy Credit Utilization ratio at 30% or less of the total available credit limit.
- Apply for a secured credit in case of no credit history
If you have not build any credit history yet, it is best to apply for a secured credit card that usually has an annual fee. Since the secured credit card asks users to pay a deposit, the chances of being able to spend more than the deposit are less. This allows you to build your credit history which helps in applying for an unsecured credit card at a later stage.