What is the top 10 characteristics I need to be accepted on a credit card apply ?

Question

What is the top 10 characteristics I need to be accepted on a credit card apply ?

Answer 1

Well basically there is just two main ones. Credit Score and Credit History.



They look at your FICA score which is kind of like a report card on how well you are at managing your credit. Higher is better, lower is not. I believe it ranges something like 300 to 800.



Your credit History basically shows how many other credit cards, home/auto loans or credit lines you've had, how long you've had them, if you've been paying on time, etc... They say it is better to have no credit than bad credit.





My biggest tips would be to throw away the 'pre-approved' mail things you get because although they say you are 'pre-approved', they can still deny you. They just send those out to spark interest and lead people on thinking they are special, when they are really no different than people who request a card on their own. Just call a credit card company yourself or go online if you want one. I recommend Capital One because their interest rate was the lowest of all my credit cards. Request the lowest limit they have (typically $500) and work your way up from there.



Edit: I forgot, they check employment history and income too. So when they ask for your annual income, don't lie. They check that to determine how much you can afford to pay them back every month.

Answer 2

Credit card companies are pretty pushy ... if you're breathing,

you're half way there.



They want to see somebody who uses credit and pays

interest, but never defaults on a loan.



You don't build credit by paying off your credit cards

immediately, because you're not paying interest. That is,

THEY DON"T MAKE ANY MONEY. Of course, if you

don't pay them off immediately, then you are losing

money.



Ultimately, if you're starting out with nothing, you apply

for something like a gasoline card which is really easy to

get. You then use that card as a reference for your credit

card.



You'll also need to have a job and not have any credit

"problems" (i.e. there is no record of you having defaulted

on a loan).



If there are problems, you may only be able to get a

card if someone else (with good credit) co-signs for that

card. This means that if you default on the loan, they go

after your co-signer.



So ... get a gas credit card, and/or a co-signer to start

things going. Once your credit improves, get another

credit card without the co-signer and cancel the first

card.



What they are looking for:

1: You have to present them with your social security

number. If you don't have one, or don't present it,

you won't get the card.

2: They'll check the credit rating associated with that

number, which will tell them if you have ever defaulted

on a loan.

3: You have a steady source of income (i.e. a job)

4: They'll check the outstanding loans that you have.

If you owe people a lot of money, regardless of your

past credit, they may not issue the card.

5: I believe the various credit agencies check with various

legal databases to verify that you aren't known to be

an embezzler (thief) or wanted by the law. If not, the

credit card company probably will.



All of these these different pieces of information are

"weighted" and then scored. If your number is better

than a certain amount, you get the card.



If the credit card company is hungry enough, then

they lower the number you have to be better than.



However, having a social security number which they

can do credit checks against is REQUIRED.

Answer 3

Residence time, residence changes in the last 2 years, job time, job changes in the last 2 years, rent/lease/own(?), monthly income, current debt ratio, status of opened and closed accounts (any delinquencies?), length of credit history, credit score



Places like Capital One won't approve you if you have any delinquencies on your credit. And Shell (gas card) won't approve you if don't have at least 2 years of positive credit established. Washington Mutual is a good beginner card, or, if you have a bank that you have been loyal to a while, they may be your best option, even if the limit is only $200.

Answer 4

Issuers of credit cards make money from cardholder fees and from inter-

est paid on outstanding balances. Not all issuers charge fees. Even

those that do, make most of their money on the interest. They really

LIKE people who pay the minimum each month.



Issuers of charge cards make money from cardholder fees. Some charge

cards actually run at a loss for the company, particularly those that

are free. The primary purpose of such cards is to stimulate business.



Issuers of debit cards may make money on transaction fees. Not all

debit card transactions have fees. Most debit cards exist to stimulate

business for the bank and to offload tellers and back-room departments.

To date, third-party debit cards exist solely to stimulate business.

Providers of such cards make no direct money from their use.



Acquirers make money from transaction charges and discount fees. Unlike

the charges and fees mentioned above, these fees are paid by the ac-

cepter, not (directly) by the cardholder. (Technically, it is not le-

gal for the merchants to pass these charges directly to the consumer.

Some petroleum stations have gotten away with giving a discount for

cash, and it has survived court challenges so far.) Transaction charges

are typically in pennies per transaction, and are sensitive to the type

of communication used for the authorization. Discount fees are a per-

centage of the purchase price and are sensitive to volume and compli-

ance to rules. One way to encourage merchants to follow certain

procedures or to upgrade to new equipment is to offer a lower discount

fee.



Until fairly recently, the only motivation for accepters was to expand

their business by accepting cards. Reduction of fraud was enough rea-

son for many merchants to pay authorization fees, but in many cases, it

isn't worth the cost. (That is, it is cheaper to pay the fraud than to

prevent it.) Recently, electronic settlement has provided merchants

with an added benefit by reducing float on charged purchases. Merchants

can now get their accounts credited much faster than before, which

helps cash flow.



Companies that issue charge cards are real keen on float reduction. The

sooner they can bill you, the sooner they get their money. Credit card

companies are also interested in float reduction, since the sooner they

bill, the sooner they can start charging interest. Debit cards

typically involve little or no float.



Affinity cards usually pay a percentage of purchases to the affinity

organization. Although it may seem obvious to take this money from the

discount fee, this doesn't work since the issuer is not always the

acquirer. The money for this usually comes from the interest paid on

outstanding balances. Essentially, the bank is giving a share of its

profits to an organization in turn for the organization promoting use

of its credit card. The affinity organization is free to use its cut

any way it wishes. An airline will typically put it into the frequent

flyer program (and credit miles to your account). A college may put

the money into the general fund or into a scholarship fund. Lord only

knows what a sports team does with the money!

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