How to Get Approved for a Credit Card

You may want a new credit card to build credit or to earn rewards. But navigating the process of applying for a credit card can be challenging, especially for first timers. It’s important to understand what lenders are looking for so you can improve your chances of getting approved for a credit card. 

Here, we’ll walk through the credit card application process and examine the main factors that credit card companies consider. We’ll also share smart strategies that can help move your application status from “pending” to “approved.”

4 key factors that can affect your credit card application

When you apply for a credit card, issuers look at several things to determine your creditworthiness. The 3 main credit bureaus—Experian, TransUnion and Equifax—share your credit history, which can impact your credit card application approval. These reports are focused on your credit score, income, employment tenure and how complete and accurate your application is.

1. Your credit score

Your credit score gives lenders a quick snapshot of your credit history and estimated risk level based on factors such as your payment history and the amount you owe. Lenders typically set a minimum FICO credit score for approval, but that doesn’t guarantee a credit card application will be approved. Having excellent credit can lead to better credit card options, including premium rewards cards, lower APRs, reduced fees and higher approval odds.

• Why you might get approved: Your score meets or exceeds the lender’s minimum requirement. However, if your score is just above the minimum, you might get a higher annual percentage rate (APR) than someone with a higher credit score.
• Why you might be denied: Your score falls below the lender’s minimum threshold, or you have no credit history. A poor credit score can adversely affect your credit card applications and lead to denials.
• What you can do about it: Focus on building or improving your credit score. This can include paying bills on time, reducing credit card balances and avoiding new credit applications. If you have no credit history or bad credit, consider applying for a secured credit card to start building a positive credit record.

2. Your income

Lenders want to make sure a potential cardholder will have enough income to manage potential credit card debt and make on-time payments. Income requirements vary based on the card type, your desired credit limit and any debt obligations you already have.

• Why you might get approved: Your income meets or exceeds the requirements for the card and aligns well with your current debt level.
• Why you might be denied: Your income is below the lender’s minimum requirement, or your debt-to-income ratio is too high.
• What you can do about it: If possible, look for ways to increase your income or reduce your debt. You can include other sources of income on your application, such as alimony or child support, if you’re comfortable having them considered as a repayment option.

3. Your length of employment

A stable employment history shows lenders that you have a reliable income stream. This stability increases the likelihood that you’ll be able to make your monthly payments.

• Why you might get approved: You meet the lender’s length of employment requirements.
• Why you might be denied: You’re currently unemployed or have been employed for only a short time.
• What you can do about it: If you’ve recently started a new job, consider waiting a few months before applying for a credit card. If you’re a recently discharged servicemember who’s transitioning to civilian employment, make sure to communicate your situation to the credit card issuer.

4. Your application accuracy

The information you provide on your application is carefully reviewed and verified by lenders. Accuracy and completeness are critical to getting approved.

• Why you might get approved: Your application is thorough and accurate. All required information has been confirmed as correct by the card issuer.
• Why you might be denied: You’ve left out important information or misstated details such as income or housing costs.
• What you can do about it: Double-check all information before submitting your application. If you realize you’ve made an honest mistake, contact the issuer right away to provide the correct information.

5 common credit card application mistakes to avoid

Even if you meet all of a credit card issuer’s requirements, a few things still could derail your application. Try these tips to avoid some of the most common pitfalls when applying for a credit card:

1. Applying for multiple credit cards at the same time

When you submit applications for several credit cards within a short period, lenders can view that as financial distress. Also, each application typically results in a hard inquiry on your credit report, which can temporarily lower your credit score.

2. Misstating your income

Overstating your income is considered fraud and can lead to serious consequences. Understating your income might result in a lower credit limit or denial. Include all eligible sources of income to provide an accurate picture of your financials.

3. Not checking for prequalification

Look for options to get prequalified before you submit a formal application. If you skip this step, you might apply for cards you’re unlikely to qualify for. That can result in unnecessary hard inquiries, which negatively affect your credit score.

4. Not managing your credit utilization

Lenders prefer to see low credit utilization on applications. Before you apply for a new card, try to pay down existing balances to lower your credit utilization ratio. Aim to use no more than 30% of your available credit across all cards.

5. Applying right after a major financial change

Significant life events like changing jobs, moving or taking out a large loan can temporarily affect your creditworthiness. If possible, wait a few months before applying for a new credit card. This can give your financial situation time to stabilize.

What to do if your application is denied

When lenders deny an applicant, they should provide a reason why. Review this explanation to better understand why you were turned down for a credit card. You also can check your credit report for any errors. This information can guide your next moves, such as disputing errors on your credit report, improving your credit score, or applying for a different type of card. 

You might also reach out to the lender to discuss your application. They may recommend secured card options if you’re working on building credit.

How to apply for a Navy Federal credit card

If you’re applying for a credit card with Navy Federal Credit Union, preparation is key. Start by reviewing your credit report for any errors and addressing them before you apply. Also, get familiar with credit card terms and conditions so you know what to expect when approved.

Browse our credit card options—including secured cards and unsecured cards—and consider which card best fits with your lifestyle. Select one that matches your needs and your qualifications. 

When you’re ready to apply, gather all necessary information in advance and fill out the application carefully and honestly. 

For more tips on the application process, check out our guide to applying for a credit card.