How to apply for a credit card and get approved

What do I need to get a credit card?

Paying with a credit card offers many advantages — convenience, protection against fraud and sometimes rewards in the form of cash back or points. To get a credit card, you must submit an application to the bank or credit union that issues the card, providing identifying details such as your Social Security Number and financial information such as employment status and income.

Once you have a credit card, using it responsibly can build your credit score and credit history as the issuer reports your borrowing and payment activity to the three major consumer credit bureaus. If you ever need a product like a mortgage or car loan, a good credit score will help.

In addition, many credit cards provide additional benefits, such as purchase protection against damage or theft, extended warranty on eligible purchases and cellphone insurance.

We’ll walk you through what information is needed to get a credit card and how to apply for one.

How do you get a credit card?

To apply for a credit card you’ll have to submit an application to the issuer. The typical credit card application will ask you for the following information:

• Name
• Address
• Social Security Number (SSN)
• Date of birth
• Employment status
• Occupation
• Education level
• Monthly housing payment
• Gross income
• Email address

Submitting your application online is often the easiest way to proceed. Other options may include applying in a bank branch, over the phone or sending your application in the mail.

How to apply for a credit card

1. Check your credit score

If you know your credit score, you’’l be able to narrow down what type of credit card you might qualify for. Credit card issuers typically require an applicant’s credit score to fall within a certain credit score range to qualify.

Credit scores are generated from lender data submitted to the big three credit bureaus (Equifax, Experian and TransUnion). The scores typically range from 300 to 850.

Even if you’ve never had a credit card before, you may have student or car loans that are reported to the credit bureaus. If you’ve never had any kind of loan or line of credit before, you may not even have a credit score yet, but it’s best to check to ensure against any fraudulent activity (such as someone using your personal info to get a loan or credit card).

You can check your FICO credit score for free at Experian or your bank or credit union may offer a free credit score with your account.

Here are the credit score ranges your FICO Score can fall into:

• 300 to 579 = Poor
• 580 to 669 = Fair
• 670 to 739 = Good
• 740 to 799 = Very good
• 800 to 850 = Exceptional

New to the world of credit? Here’s how to make sense of your credit report.

2. Consider why you’re applying

Once you know your credit standing, give some thought to what you’re trying to accomplish with a new credit card. For example, if you’re new to credit, there are cards designed to help you build up a solid credit score. If you’re in college, there are student credit cards geared toward getting you started on the path to good credit. Or, if you need to rebuild your credit score due to financial missteps or circumstances beyond your control, there are credit cards that can help you do that, too.

When you are just starting out or needing to rebuild your credit profile, know that your first card will likely come with a small credit line until you prove yourself to be a responsible borrower — meaning you always pay your bill on time and don’t max out your entire credit line.

As your credit score climbs with responsible usage, you’ll be more likely to qualify for credit cards with bigger credit limits and better terms down the road.

3. Check if you’re pre-qualified

Checking if you are pre-qualified for a credit card before you actually apply is an easy way to determine whether the odds are in your favor of being approved. However, there is no certainty if you will be approved, even with a pre-qualified offer, until you actually apply.

Technically, preapproval is when an issuer reaches out with an offer, whereas pre-qualification is initiated by the consumer. But, pre-qualification and preapproval often mean essentially the same thing when it comes to credit cards — and many issuers offer online tools where you can input your information and check for offers. Plus, using an issuer’s pre-qualification or preapproval tool can protect your credit score from unnecessary hard inquiries.

Checking for pre-qualification before you apply for a card is a soft inquiry of your credit reports, which doesn’t impact your credit score, compared with a hard inquiry when you actually apply and the lender pulls your credit reports and scores. Each hard inquiry knocks down your credit score a few points for one year and stays on your credit reports for two years.

Curious how inquiries work? Here’s how soft vs. hard credit checks differ.

Not every issuer, nor every card, offers the opportunity for pre-qualification. For those that do, you’ll generally be asked to supply information such as your name, SSN, annual income, address and perhaps whether you own or rent your home.

Some of the more popular card issuers offering pre-qualification tools include American Express, Bank of America, Capital One and Discover.

4. Create a repayment strategy

It’s important to know how you will handle making payments on a new credit card. Once you’re approved for your new account, you may want to create an online account or download the app to help you keep track of your transactions and balance.

Enabling notifications — such as a text, email or app notification — for your bill’s due date could be a good idea. You can also turn on notifications for every transaction if you’re worried about someone using your credit card without your permission.

Setting up automatic payments can also help you avoid accidentally missing a payment, which could lead to late payment fees and lost benefits. You could set these up for just the minimum payment amount due or for the entire statement balance. Paying your bill in full each month can help you avoid interest charges. But you still need to be mindful of the due date and amount because you don’t want to accidentally overdraw your checking account.

What happens if my credit card application is denied?

If you are declined for a credit card after applying, know that you have plenty of company. According to the New York Fed, 18.50% of credit card applications were rejected in 2022. 

Some common reasons for credit card rejections can be:

• Your credit score is too low.
• You currently are carrying too much debt.
• Your income is insufficient.
• You’re too new to credit for the type of card you’re applying for.
• You have a history of late payment on existing loans or credit cards.
• You’ve applied for too many cards recently.
• You included incorrect information on the application or didn’t fill it out correctly.
• You didn’t unfreeze your credit reports before you applied (which prevents the issuer from viewing your credit files).
• You recently filed for bankruptcy.

If your card application is denied, the law requires that the issuer send you an “adverse action” letter, which states why your application was rejected. The letter may state one or several reasons why you were turned down, such as carrying too much debt, past-due payments on other debts, etc.

If you disagree with the findings in the letter, you can call the issuer to see if they will reconsider approving you for the card once you clarify and/or correct the information that was included in the adverse action letter. There’s no guarantee that will work, but it’s worth a try and some have had success doing so.

The silver lining of an adverse action letter is that it can outline what steps you need to take to improve the odds of being approved down the road once those items are addressed. Or maybe you just applied for a card that isn’t the best fit for your credit profile and you need to take a better look at what types of cards you’re more likely to be approved for.

Either way, don’t become disheartened. Time can heal most credit mistakes. Learning what you need to do to improve your creditworthiness can only benefit your financial standing going forward.

How to improve chances of approval

• Consider your credit standing. In general, it’s easier to qualify for store cards or secured credit cards than unsecured credit cards. However, there are unsecured credit cards for people who are rebuilding their credit and cards for those brand new to credit that may be easier to get approved for. Some of these have high fees and interest rates, and they might not be the best option. Others consider your banking history rather than just your credit when reviewing your application — they may offer good benefits and low fees.
• Review any current debts. If your current debt load is high, you’ll have a better chance of getting approved for a credit card if you first focus on paying that existing debt down. Also, your credit utilization ratio, meaning how much of your credit limit you’re using on your revolving credit accounts, is a key factor in how high or low your credit score is.
• Work on improving your credit score. If you’re just starting out or your credit standing isn’t great, consider becoming an authorized user on a family member or other trusted friend’s card with a solid on-time payment history or apply for a secured card that requires a deposit and use that card responsibly to build up a sagging credit score.
• Check for pre-qualified and preapproved offers. As discussed above, getting pre-qualified or preapproved for a particular card, although not a guarantee, will increase your odds of being approved.

Finding the right credit card for you

Finding the right credit card card for you will depend on several factors, including but not limited to your credit score. And, there are numerous types of credit cards designed for a variety of prospective cardholders.

To give you an idea of what type of credit card might be a good fit for your needs, check out the table below:

IF YOU ARE:	THIS TYPE OF CREDIT CARD MAY BE BEST FOR YOU:
A college student aged 18 or older	Student credit card
New to credit but not a student	Starter credit card or store credit card
Rebuilding credit	Secured credit card
Looking for cash-back rewards	Cash-back credit card
Looking for points or miles for travel	Travel rewards credit card (which can include airline or hotel credit cards)
Spending a lot on gas purchases	Gas rewards credit card
Wanting to consolidate credit card debt	Balance transfer credit card
Wanting to finance a large purchase over time	0% introductory rate on purchases credit card
A business owner or entrepreneur	Business credit card

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Know that, in general, rewards cards and those offering a 0% introductory APR on purchases or balance transfers, require higher credit scores for approval. And, some of the most premium rewards cards may charge an annual fee. Conversely, student, store and secured cards are geared toward consumers with lower credit scores and generally don’t have annual fees.

Think you might have a low credit score? Here’s the lowest credit score you can have.

Secured cards are unique in that the cardholder is typically required to submit a security deposit in the amount of the credit line. For example, you’ll have to submit a $200 security deposit for a $200 credit line.

The security deposit protects the lender if you don’t pay back what you charge to the card. Note, you still have to make payments — the deposit does not replace the need to pay off your card balance. Some issuers offer the chance to get your deposit back and graduate to an unsecured card after demonstrating responsible usage. You can also generally get your deposit back by closing your credit card account, provided you don’t have a balance or outstanding fees.

In other respects, a secured card functions just like an unsecured card. As long as the issuer reports activity to the credit bureaus, and you’re responsible about keeping utilization low and always paying on time, a secured card can be a great tool for improving your credit score.

Frequently asked questions (FAQs)