5 way to get rewards on a new credit card
Credit cards are a tricky affair. They are very convenient on one side while being extremely risky on the other side. Nowadays, the application process for the credit cards has also been simplified to a great extent.
But the outcomes of the application process seldom meet the expectations.
When you apply, two things can happen. Either the application is approved or rejected. Rejection becomes even more likely when you apply with poor credit score. We cannot be very sure of the approval as well because even when it gets approved, the path is not all rosy. There are high chances that your low credit score will make you ineligible for some specific rewards and interests.
If it all boils down to your credit score, then why not look at the various measures by which you can improve this score, so that you can be better eligible for the benefits of credit card offers.
How to get the terms on your new credit card?
Know your credit score:
- A credit score is generally a three-digit number, and the banks calculate it on the basis of your credit report. It can range from 300 to 900.
- Any credit score above 750 is a good score. A credit score signifies the borrower’s ability to repay the loan amount. The closer the score is to 900, more the issuing bank has confidence in the borrower.
- As for knowing your score beforehand is concerned, do not worry at all. Like many other things that have surfaced online, the credit score calculation web applications have also emerged on the digital platform.
Improving your credit score:
A good credit score never did any harm to anyone. Let’s have a look at the measures you can take to improve this score:
- Pay off any existing debts:
Your outstanding balances on credit cards and loans take a good 30% share of your credit score. You would not like your score to tell the bank that you cannot repay the amount. So make sure you are free of the existing debts before you even apply for a credit card.
- Have a good credit history:
If you have a thin credit history or none at all, you can opt for the cards that are designed to help you build a credit history. Making timely payments of your credit loans will also reflect on your score in a good way.
Research and compare wisely
- You can count out comparison while shopping for credit cards. Compare the various cards to find out the best rates for your card.
- If you get a pre-approved credit card offer, do not be fooled by it. It just means that the algorithm of the issuing bank saw you as their potential customer and nothing else. Do thorough research.
- When these choices leave you in a pool of doubt, remember that you can always discuss your case with the issuing bank. By speaking to them, you can know the best rates and rewards possible with your score.
- For this comparison, do not apply for multiple cards at the same time to try your luck. There is always a hard inquiry for all the applications and the fact that you have applied for multiple cards can surely sim your chances.
- Remember, you are in a market. You have to look at all the options to get the best.
Applying for a credit card means that you are purchasing one out of the various options available out there. Negotiation is always a crucial part of making a purchase.
Once your request has been approved and they have offered you the required card, you can call them up if you are not satisfied. There can be no assurance that you will eventually get the terms of your choice. But you can give it a try.
Try asking them if they could reconsider the terms. Or, if they could amend a term on a card that you have been using for a while. For any such request for an upgrade, remember that they will surely dig your credit history first.
Who knows the most appropriate terms may be just a request away!
What if I know I cannot qualify for the best terms?
First of all, it is good that you know your situation well. Next, if you still need a credit card, try applying for a lower level product.
For instance, some brands have two cards by the same issuer. Let us say one has a lower interest rate and the other has higher one. Knowing that your credit is not in a good state, you can apply for the one with a higher rate and use it for some time.
While using this, ensure ethical practices. Make timely payments. Try to keep your debt levels near about 10% of your credit limit. After using this card for some time, you can inquire with the issuer for an upgrade.
- When you are applying for a credit card, you have to show up with your credit score. A weak credit score slims your chances of approval to a great extent. On the other hand, a great credit score can land you with the best terms.
- With a good credit score, you can avail better credit limit, lower interest rates, better offers, and rewards.
- Knowing the reverse side is equally important. Not making timely payments for your credit can land you in a cycle of debts.
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