5 Steps For Guaranteed Unsecured Credit Card Approval

Receiving a guaranteed unsecured credit card isn’t difficult, but it will require some work. Here are a few tips to get you headed in the right direction.

Step #1 - Credit Score
Before you start applying for any credit card, know what your credit score is. Often times people think their credit is better than it really is. You are entitled to a free credit report every year, and each time you are denied credit. Take advantage of this. Knowing what is on your credit report will not only arm you with knowledge when you apply for credit, it’s just smart too. You may find something on the report that needs to be disputed. The credit card company will be checking this, you need to know what they are seeing.

Step #2 - Debt to Income Ratio
The credit card company will be looking at more than just your credit score when they arrive at a credit approval decision. If you bring home $20,000 a year on paper, they may not think you make enough to cover any additional expenses. This is why the applications will ask questions about not just your income, but your other expenses such as mortgages or rent. Be armed with tax returns, bank statements, and other documents that will provide a more accurate snapshot of your income ratio.

Step #3 - Know Their Requirements
Finding out what criteria the bank adheres to in approving credit can be tricky. Since most unsecured credit cards will have requirements that vary, it may be hard to pin down exactly what you need to do. A quick call to customer service should be able to answer some of your basic questions though. If customer service isn’t able to help you, ask to speak with their finance department. This won’t guarantee that you will get all the answers, but it will get you on the right path. Some cards require minimum credit scores, minimum income requirements, and other factors that the bank predetermines. Applying for a card that requires a score of 700 when your score is 650 will only ding your credit further.

Step #4 - Current Relationships
You have a much better chance of being approved for an unsecured credit card with a company that you already have a relationship with. This doesn’t mean that you must have another credit card through that bank, but if you have a mortgage or car note that is paid on time every month through a bank that also offers cards, try these banks first. If you conduct your banking transactions with a credit union, often times you can get a guaranteed unsecured credit card by utilizing this existing relationship.

Step #5 - Features
If your credit history is a little shaky, but not necessarily bad, you may want to start by applying with credit card companies that offer “no frill” credit cards. The more benefits and features the card offers, the higher the requirements generally are. Forego the features such as airline miles or cash back for the time being. Once you’ve been a good customer of theirs for a time, you can apply or upgrade your card to one that does more for you.

With some research on your end, you should be able to find a guaranteed unsecured credit card with little effort.

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