"How to Improve Your Chances of Getting Approved for a Credit Card"

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Understanding the Credit Card Application Process

At O1ne Mortgage, we prioritize consumer credit and finance education. This post aims to provide an objective view to help you make the best decisions regarding credit card applications. For any mortgage service needs, feel free to call us at 213-732-3074.

Your Identity Will Be Verified

Credit card issuers are vigilant about preventing fraud and identity theft. They use various checks and verifications to ensure the applicant’s identity is legitimate. This might involve comparing personal information from your credit application and credit report or examining your credit history for signs of fraudulent activity.

Your Credit Will Be Checked

Issuers need to ensure that cardholders can manage new credit card payments. This is why they ask about your income and monthly housing expenses. Credit scores play a crucial role in determining your eligibility, interest rate, and credit limit. Issuers may request one or more of your credit reports and a score based on the report, such as a FICO® Score or VantageScore®. This results in a hard inquiry on each requested credit report.

You’ll Find Out the Status of Your Application

The fraud and credit check process is highly automated, often providing a result within seconds. There are three potential outcomes:

Your Application Is Approved

If approved, you’ll be informed of your card’s annual percentage rate (APR) and credit limit. Some issuers may provide a credit card number immediately for online purchases or mobile wallet use. Otherwise, you’ll need to wait for the physical card to arrive. The new credit card will be reported to the credit bureaus, affecting your credit scores once it appears on your report.

Your Application Is Denied

If denied, the hard credit inquiry will remain on your credit report for two years. The issuer will send an adverse action letter explaining the denial, including the credit score used and the report it was based on. You can call the issuer to request reconsideration, especially if your credit reports were frozen or if you have other cards from the issuer.

Your Application Needs Further Review

Sometimes, an application requires additional information before approval. This could involve verifying business ownership for a small business credit card or providing additional identity or income verification documents. You can check the status via the issuer’s website or call them for updates.

How Long Does It Take to Get a Credit Card?

Once approved, it typically takes one to two weeks for your new credit card to arrive by mail. If you need the card sooner, you can request expedited shipping, though this may incur a fee. Some cards offer instant use numbers for immediate online purchases.