This stage is very important in determining the outcome of your credit card application. Furthermore, the banks or any lender has the statutory obligation to identify and know their customers. The lender is required to have full information, such as address information, birth date, official identification documents, and contact information, as well as a customer’s financial status, sources of income and banking services. The credit card approval system compares this information provided by the card applicant to the stored customer report information.
Qualification Stage
After completion of identification stage, the next stage in the credit card approval process is the qualification stage. In this stage, the system checks for the information on a customer’s length of residence, term of employment whether permanent, contract or casual, and the total income. In order to come up with a credit score for an applicant, the card approval system compares an individual’s income with the amount of rent or the mortgage indicated during the application process. Therefore, a low monthly rent or mortgage and a high income indicates a positive credit score. Customers who wish to increase their chances of securing a credit card should have a credit score report as high as possible.
Credit Profile Check Stage
During this stage, the credit card approval software examines sequentially the credit report systems step by step for particular scores and reports. An individual who is not credit worthy with a score lower than 520 is automatically disqualified from getting a credit card. Applicants with a credit score between 580 and 620 are usually considered to have a fair credit. The credit card approval process may temporarily halt for an applicant with a fair credit ranking. The lender may want to have in-person review of the applicant’s complete credit history over time. Full processing in such a case can take up to 30 days. Applicants with a credit score higher than 620 are considered to have good credit and are automatically approved by the system for a credit card.
Ways to Increase Credit Card Approval
The most significant way of increasing your chances of credit card approval is by improving your credit score. There are various things you can do to improve this score, which includes keeping your balances low on credit cards, strategically paying off debts in time, avoid opening many credit cards that you do not need and, lastly, ensure that you pay the utility bills in time and full. Those with poor credit score can obtain secured credit cards or high interest credit cards.
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