Key takeaways
If you want to boost your chances of getting a credit card, knowing where your credit score falls on the spectrum can help.
If you have limited credit history or no credit, you may have to start your credit-building journey with a secured credit card.
Keeping your credit utilization ratio below 30 percent, paying your bills on time and having different types of credit on your reports can help move the needle and improve your score.
Whether you’re applying for a first credit card or you already have a card or two in your name, you can take steps to boost your chances of getting the card you’re after right now. Most moves you should make have to do with keeping your credit score in tip-top shape, or trying to improve it so you become a more attractive credit applicant.
Take these steps right now to improve your chances of getting a new card, whether you’re after a top-rated travel credit card, a cash back credit card or a starter credit card to build credit for the first time.
1. Check your credit score
Before you apply for a credit card, you should check your credit score to know which cards you may be eligible for. This is important since the best rewards credit cards on the market today usually go to individuals with good credit or better, or with FICO scores of at least 670. That said, there are also credit card options for people with fair credit (FICO scores of 580 to 669) and even poor credit.
How can you check your credit score? See if you have free access to credit scores through options like Capital One’s Credit Wise, Chase’s Credit Journey and Discover’s Credit Scorecard. Credit cards you already have may also offer a free credit score on your monthly statement. AnnualCreditReport.com also offers free access to credit reports, as do some credit reporting agencies like Experian.
2. Correct errors on your credit reports
If you haven’t checked your credit reports lately, but you feel that some negative information may be dragging your score down, you should remedy this situation right away. You can start by accessing your credit reports for free on AnnualCreditReport.com.
If you find incorrect information on your credit reports, you have the legal right to formallydispute this information and have it removed. According to theConsumer Financial Protection Bureau(CFPB), some common errors in credit reports that could harm your credit score include the following:
Closed accounts reported as open
Balances reported twice
Accounts with incorrect balances or credit limits
3. Note your debt-to-income ratio
Add up all your monthly debt payments — including your mortgage and any co-signed personal loans — and divide it by your monthly gross income to calculate your debt-to-income ratio (DTI). For example, if you pay $2,000 a month in debt and your monthly income is $8,000, your debt-to-income ratio is 0.25 or 25 percent.
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