Key points about: how to get a credit card
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Before you apply for a credit card, understand the factors that affect your credit score.
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Some online credit card applications immediately let you know whether you’re approved.
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If your credit card application for a standard card is denied, you may qualify for a secured credit card.
Applying for a credit card can be a quick and easy process if you know what you’re doing. Whether it’s your first credit card or you’re considering balance transfer credit cards, use the information in this article to better understand the process, from preparation to acceptance.
Before you apply for a credit card, educating yourself and practicing good credit habits are important. Follow these tips to help lessen the stress involved in the application process.
Step 1: Before you apply to get a credit card
Understand your credit score
Know the essentials about your credit report and score before applying for a credit card. Your credit score is a three-digit number calculated based on multiple factors, including payment history, amounts owed, length of credit history, credit mix, and new credit.
Whether it’s through your bank or elsewhere, many financial institutions offer tools to check your credit scores and identify which, if any, of these areas are weaknesses in your credit profile.
What Makes Up Your FICO® Score
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35%
Payment
History
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30%
Amounts Owed
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15%
Length of
Credit History
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10%
Credit Mix
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10%
New Credit
This formula shows how each category impacts
FICO® Scores. FICO is a registered
trademark of Fair Isaac
Corporation in the United States and other
countries.1
Regardless of when you plan to apply for a credit card, get into the habit of reviewing your credit report regularly. Mistakes on your report may impact your score, so you’ll want to take care of any errors before you apply for any form of credit. You’re legally entitled to a free credit report every week from each of the three credit reporting agencies according to Federal Trade Commission.
Since the amounts you owe make up a significant portion of your credit score, it can be helpful to pay down your debts before trying to get a credit card. Put together a plan to pay off debt or reduce your balances to lower your credit utilization ratio. This may potentially help your credit score and improve your chances of a successful credit card application.
Be ready to prove you can make payments
To get approved for a credit card, you’ll also need to provide proof that you can make payments. Credit card companies may verify your income and review your current financial obligations, like rent or mortgage payments.
Understand terms and conditions
When you sign a credit card application, you agree to the contract terms and conditions.
A credit card’s terms and conditions may include information on its interest rate, annual fee, other fees, reward program details, and other specifics. By reading them closely before you sign a contract, you can prepare yourself for managing your new credit card.
Once you feel prepared to apply for a credit card, it’s time to search for and select the card that’s right for you.
Step 2: Where can you get a credit card?
Applying for a credit card is a simple process usually done online, over the phone, by mail or in person, depending on the credit card company.
Did you know?
Sometimes you can find out if you’re likely to qualify for a credit card before you complete a formal application. See what Discover offers you could be pre-approved for with no harm to your credit score.2
Choose a card that matches your needs
You’ll want to narrow your search down to the best credit cards that fit your lifestyle, and cards for which you’ll have a good chance of being accepted. When you’re just beginning to build your credit, look into cards that require little or no credit history.
The best first-time credit card for building credit history may be a secured card or student credit card. If you have an established credit history, consider a rewards credit card, and apply for cards that make the most sense for your spending habits.
- Secured Cards: A secured credit card can help those with no credit or bad credit build credit with responsible use.3 These cards require a security deposit in exchange for a line of credit. If cardholders later qualify for an unsecured card, they can get their deposit back.
- Student Cards: Getting a student credit card typically requires proof that you’re a student, but it doesn’t require any security deposit. These cards may offer rewards.
- Rewards Cards: Credit card rewards are a great way to increase your purchasing power. Choose a rewards card that matches your goals—whether it’s a travel credit card that earns you airline miles, or a cash back credit card that earns rewards on everyday purchases. The Discover it® Miles Travel Credit Card allows cardmembers to redeem rewards for cash to spend with the airline or hotel of your choosing, or on any other expense.
Step 3: Credit card application time
You’ve studied your credit score and picked your credit card of choice. Now it’s time to apply. Here’s what to expect during the application process.
The credit card application process can be simple. Be prepared to provide information such as your:
- Full name
- Email address (usually optional)
- Current employer (and how long you’ve worked there)
- Social Security number or Tax Identification Number
How long does it take to get a credit card?
It doesn’t typically take long to get your credit card decision, especially when you apply online. After you’ve submitted your application, the credit card issuer begins the credit approval process by checking your credit with at least one credit bureau. Depending on your internet speed and network conditions, this process can take from a few seconds to a minute or more. After the credit check is complete, you may see a decision on the screen.
At this point, there are three possible outcomes: You can be instantly approved for an account, instantly denied, or receive a message that your application needs further review. With an instant approval, the issuer will typically deliver the card in 7-10 business days.
See if you're pre-approved
With no harm to your credit score2
Step 4: After you’ve applied to get a credit card
There are two possible outcomes after you apply for a credit card: acceptance or denial. If your application is denied, don’t despair. Instead, find out the reason for your denial and work to put yourself in a better position for future applications.
Why was my credit card application denied?
If you understand some of the key factors considered in the credit card application process, you can improve your financial situation so you can reapply in the future.
All hope is not lost if your application for a secured credit card is rejected. If you didn’t before, make sure your credit report is error-free, and explore your options to stay on top of your credit score. With time and effort, you can put yourself in a better position to re-apply for a credit card.
After you receive your credit card
A credit account is an important tool that can help you reach your financial goals. Whether it took you one or many applications to get your credit card, the guidelines are the same: don’t exceed your credit limit and use your credit card responsibly to make the most of your new credit card.
