Applying for a Credit Card? Here’s How Your Approval Odds Stack Up (2024)

Before applying for a credit card, ask yourself if you're likely to be approved.

Understanding the odds of being approved for a credit card can save you time. You can narrow your search for a card to the ones you’re most likely to qualify for. Second, limiting your credit card applications can minimize negative impacts on your credit score. Each new inquiry for credit can knock a few points off your score, so the fewer credit cards you apply for, the better.

Learn what it takes to be approved for a credit card, and how you can increase your approval odds if you’re new to using credit or you’re attempting to rebuild your credit history.

Key Takeaways

  • Your credit score is the biggest single factor in whether you'll be approved.
  • If your credit score is high, you should qualify for a relatively low-interest rate and better perks.
  • If your credit score is low, you may qualify only for a higher-interest card.
  • If your credit score is low or you're just starting out, consider a secured credit card or a small personal loan to build or rebuild a favorable history.

Before Applying for a Credit Card, Know the Credit Score Ranges

Credit card companies take several factors into account when they approve borrowers for a credit card. They include:

  • Your credit scores
  • Income
  • Monthly rent or mortgage payment

Of those three, your credit score carries the most weight in credit card approval decisions.

One way to evaluate your odds of being approved is by checking your credit scores in advance. FICO credit scores, which range from 300 to 850, are used by 90% of lenders.

Mike Pearson, credit expert and founder of the credit repair site Credit Takeoff, explains how the score ranges affect your approval odds. “If you have a credit score of 750 and above, you’ll have your choice of nearly any credit card on the market, including ‘prime’ cards, which feature premium rewards and perks,” Pearson says. “You could still get rejected on the basis of a too-high credit utilization ratio or a recent late payment—but if you have an excellent credit score, you stand the best chance of getting approved for most prime cards.”

At the other end of the spectrum is the “poor” credit score range, which is a score below 580. If your score is in this range, Pearson says your best bet for getting approved for a credit card is a secured card.

With a secured credit card, you make a down payment or deposit cash into an account when you sign up for the card, which provides as collateral. If you fail to pay the bill, the credit card company can use your deposit to cover the balance.

The average FICO score was 717 as of October 2023, according to an annual update published by FICO.

Your credit score determines the rate of interest you'll pay. If your score is low, you'll pay a higher interest rate.

Improve Your Odds of Being Approved for a Card

Regardless of whether you have excellent or fair credit, there are steps you can take to raise your chances of being approved for a new credit card offer.

Check Your Credit Report and Score

If you haven’t checked your credit report and scores yet, this is a good place to start when trying to improve your odds of getting a credit card. Your credit report is a collection of information that’s used to calculate your credit scores. This includes things such as payment history, account balances, inquiries for new credit, delinquencies, and public records.

You can get your credit report for free at least once per year from the three main credit bureaus, Experian, Equifax, and TransUnion, through AnnualCreditReport.com. If you’ve never checked your credit report, it may be helpful to get all three reports at the same time to see how your credit history compares. You may have a creditor that reports to only one bureau instead of all three, for example, which could affect your credit score.

As you review your reports, check to make sure all the information is correct. If you see an error or inaccuracy, you have the right to dispute it with the credit bureau that’s reporting the information.

If the bureau verifies that an error exists, it is legally required to remove it or correct it, either of which could add a few points back to your score.

Practice Healthy Credit Score Habits

For FICO score calculations, two factors, in particular, carry the most weight: payment history and credit utilization.

Credit utilization

Credit utilization is how much of your credit limit you’re using at any given time. Knowing how to manage these two factors is key to improving your credit score.

If you already have one or more credit cards, maintaining low balances can also help your score. Generally, lenders like to see your credit utilization at 30% or below.

Paying down your current balances can improve your utilization ratio. Another option is requesting a credit limit increase on your cards. By increasing your available credit limit, you improve your utilization ratio, assuming you don’t make any new purchases against the higher limit.

Credit history

“Your payment history is the number one thing that goes into calculating your credit score,” Pearson says. “Just one late or missed payment can send your credit score down by more than 50 points.”

You can avoid that scenario by making your payments on time every month. If you struggle to manage due dates, automating payments from your bank account can simplify the bill payment process. Alternately, you could set up alerts through your bank or with your billers to let you know when a due date is approaching.

Compare Card Offers Before Applying

Credit card companies routinely change their credit card offers. While they may not explicitly state what minimum credit score they’re looking for from consumers, many of them do give a general range that indicates who the card is suited for.

For example, a credit card company might offer a cash-back card with one rewards rate for consumers with good or fair credit and reserve a card with a higher cash-reward rate or better perks for consumers who have excellent credit.

Taking time to do your homework and research card options can help you narrow the field to the cards for which you’re best suited, based on your credit profile.

From there, you can streamline the list further by determining which cards best fit your needs. For instance, if you carry a balance, you may prefer a card that offers a low annual percentage rate (APR) on purchases. Or you might be interested in a card that offers travel miles or points rather than cash-back rewards.

Remember to look beyond credit scores and consider the other requirements a lender may set, such as a minimum income threshold. Also, check the card options your bank offers against what other banks advertise. If you have a positive banking history with your bank or credit union, you may find it easier to qualify for a card.

Take the time to review the APR and fees of any card you consider, so you know what the card will cost you.

Frequently Asked Questions (FAQs)

How Can I Build Credit to get a Credit Card?

Consider other options for using credit, such as a secured credit card or a credit-builder loan. These are small personal loans you can use to establish and/or build credit by making timely payments.

How Can I Get a Credit Card If I'm Under 21?

If you’re unable to get approved for a card because you’re under 21, the age limit for getting credit cards imposed by the 2009 CARD Act, you could try the authorized user route. This involves asking your parents to add you to one of their cards as an authorized user. You wouldn’t be responsible for any debt incurred on the card, but you could reap the benefits of their responsible card use. This could be a stepping stone to getting approved for a card in the future.

Can I Apply for More Than One Credit Card?

You may apply for as many credit cards as you like. But when you apply for credit multiple times over a long period of time, your credit score is likely to decline. If you carry multiple credit cards, you may be tempted to spend on them, which puts you at risk of carrying debt that will be difficult to pay off.

The Bottom Line

Being approved for a credit card can take time if you don’t have a lengthy credit history or your credit score is recovering from a past mistake. Remember to be patient when building credit, as it can take time for your efforts to be reflected in your credit score. In the meantime, continue practicing good credit habits (such as paying bills on time) and consider enrolling in a free credit monitoring service to track your progress from month to month. You can also select from one of the best credit monitoring services.

Applying for a Credit Card? Here’s How Your Approval Odds Stack Up (2024)

FAQs

How to increase odds of credit card approval? ›

As lenders tighten requirements, improve your chances of getting a new credit card with these 4 tips
  1. Pay all your bills on time. ...
  2. Be able to show employment or some type of cash flow. ...
  3. Apply for a secured credit card. ...
  4. Monitor your credit score for any changes.

What is the 30 rule for credit cards? ›

Your credit utilization rate — the amount of revolving credit you're currently using divided by the total amount of revolving credit you have available — is one of the most important factors that influence your credit scores. So it's a good idea to try to keep it under 30%, which is what's generally recommended.

What do excellent approval odds mean? ›

Excellent chance of approval. You are highly likely to qualify for this credit card. In fact, your high approval odds may also grant you access to “Special Offers” — meaning you may be preapproved for this card and possibly an elevated welcome offer if you apply through Bankrate.

What if credit karma says outstanding approval odds? ›

Approval Odds are guidelines — not guarantees

Even if your Approval Odds are “outstanding,” “excellent” or “very good,” remember that the issuer — not Credit Karma — always has the final say in whether you'll actually be approved.

Which bank approves a credit card easily? ›

Comparing the easiest cards to get
Card NameAnnual feeFICO score required
Bank of America® Unlimited Cash Rewards Secured credit card$0No credit history
Capital One Platinum Secured Credit Card$0No credit history
Indigo® Mastercard®$0-$99 depending on creditworthiness300 to 670
Capital One Platinum Credit Card$0580 to 740
3 more rows
Jun 28, 2024

What is the 5 24 rule for Chase? ›

Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

What is the 15 3 credit card payment trick? ›

Typically, with the 15/3 credit card method, you pay half of your credit card statement balance 15 days before the due date, and then make another payment three days before the due date on your statement. Learn more about this technique here.

What is the 15 day 3 day credit card rule? ›

The 15/3 rule, a trending credit card repayment method, suggests paying your credit card bill in two payments—both 15 days and 3 days before your payment due date. Proponents say it helps raise credit scores more quickly, but there's no real proof. Building credit takes time and effort.

What is the golden rule of credit card use? ›

The golden rule of credit card use is to pay your balances in full each month. “My best advice is to use a credit card like a debit card — paying in full to avoid interest but taking advantage of credit cards' superior rewards programs and buyer protections,” says Rossman.

What is the hardest Chase card to get? ›

A rating of 5 is the best a card can receive. Why it's one of the hardest credit cards to get: Chase Sapphire Reserve® is one of the hardest credit cards to get approved for by virtue of the fact that it is one of the best rewards cards on the market. From its initial bonus of 60,000 points to the ...

Is Capital One Platinum credit card good? ›

The Capital One Platinum Credit Card is a solid choice for people looking to build credit. You won't earn rewards or have access to many perks, but it will help you learn to manage your credit effectively. But, beyond helping you to build your credit, this card doesn't have much to offer.

Is Discover It easy to get approved? ›

For this card, you generally need a good to excellent credit score to qualify. According to FICO, a 'good' credit score is a score between 670 and 739.

Why do I keep getting denied when I have good credit? ›

You may also have a history of high credit utilization. If you consistently max out your credit cards, for example, issuers may be hesitant to offer you new credit even if you always make your payments on time. Or maybe you've applied for too much new credit within a short time period.

Why is my credit score 100 points higher on Credit Karma? ›

This is mainly because of two reasons: For one, lenders may pull your credit from different credit bureaus, whether it is Experian, Equifax or TransUnion. Your score can then differ based on what bureau your credit report is pulled from since they don't all receive the same information about your credit accounts.

How many hard inquiries are too many? ›

However, multiple hard inquiries can deplete your score by as much as 10 points each time they happen. People with six or more recent hard inquiries are eight times as likely to file for bankruptcy than those with none. That's way more inquiries than most of us need to find a good deal on a car loan or credit card.

What is 90 chance of approval for a credit card? ›

90% – 99% chance of approval

This means that you're very likely to be approved for a loan or credit card based on what you've told us. Usually, the lender will need to do a few final checks on their side to fully approve your application. Very likely to be approved for this offer if you apply.

How to convince credit card company to increase credit limit? ›

Keeping your financial information up to date, making on-time payments and monitoring your credit reports may help you qualify for a credit limit increase. How you use credit determines how a credit limit increase will affect your credit scores.

How can I speed up my credit card approval? ›

If you're thinking of applying for a credit card, here are 10 tips to increase your chances of getting your application approved.
  1. Don't apply for too many cards at once. ...
  2. Know what's in your credit reports. ...
  3. Apply for cards that fit your credit score. ...
  4. Pay your bills on time. ...
  5. Watch your credit utilization.
Nov 17, 2023

What increases credit score most? ›

Ways to improve your credit score

Paying your loans on time. Not getting too close to your credit limit. Having a long credit history. Making sure your credit report doesn't have errors.

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