How to Qualify for a Kredittkort På Dagen

Shopping with a credit card is pretty handy. After all, you won’t have to carry a lot of cash, and you’ll be able to afford high-ticket items, especially if you have a high limit.

A credit card is now commonly used worldwide but getting one isn’t as simple as you might think. For one, many banks, financial corporations, and major issuers have strict requirements and background checks regarding borrower approval. They would want to deal with people who can pay what they owe at the end of the billing cycle and those with high creditworthiness.

Before you start the application, you might want to research first about your options and the paperwork that various financial institutions usually require so you can prepare for them. With proper research, you’ll be able to estimate your chances of getting approved and save yourself from rejections and hard inquiries that can lower your credit score in the future.

Qualifications to Know About

1. You should be at the Right Age

Generally, the right age is defined as 18 years or older. This is typically the legal age where people can search for work and have a steady source of income. If you don’t have a job yet, there’s an option where you can get a joint credit card with your family or friends.

Some banks have an income requirement that states that you don’t specifically have a full-time job before you can qualify. Other students will just use their annual earnings from their part-time college jobs on their application to get higher chances of approval. When you have an income that’s high enough, then you can use the pay stub to apply and start building your credit rating at a young age.

2. You Have your Own Source of Funds

A source of income or incoming funds is another requirement that many banks look for. Any access to a household income will also help, and reasonable access to shared properties, deposits, savings accounts, and regular transfers are good enough to get approved.

This is great for students who receive allowances from their parents. They don’t have to get their parents involved with the process unless they are opening a joint account with them. As long as they are getting regular transfers, then this can be a great option for them.

When you have a reliable source of income, you can be a low-risk borrower in the lenders’ eyes. However, the amount that you’re receiving should be high enough for them to consider your application.

3. Get Help from a Co-borrower

When you cannot qualify for a credit card when you apply alone, consider getting help from a co-borrower. This person should be old enough and has sufficient income so you can get the card that you need,

4. Excellent Credit History

Your history of paying on time and not defaulting on any loans will usually reflect on your credit report. When you have a high score, know that you can get the approval you want in just a few business days. Other issuers are always looking for borrowers with clean records and no history of bankruptcy. You can also find someone who can approve your application as long as they see that you don’t have any delinquent records and late payments for the past three years.

You can still get approved if you have a low score and a negative history of paying late. However, the lenders will give you a high-interest rate and a not-so-good term. Some banks where you got a charge-off will not even allow any re-application, and you have to wait for at least a few years before re-applying.

5. Security Deposits Might Help

Those with low credit scores might want to save up a lot to get a credit card. You might want to apply at https://kredittkortinfo.no/kredittkort-på-dagen/ and see what their requirements are for people who want to get their cards on the same day. When the financiers know that you’ve saved up a significant amount over time and have a low debt-to-income ratio, you’re boosting your chances of getting approved.

This is because your savings account usually serves as a security deposit to the credit card. This makes it a secured loan where you’ll have the chance to build your score. When you can complete at least a year of on-time payments, this can be the best time to apply for an unsecured credit card. It’s also worth noting that this is a great step, provided that you don’t have any delinquent or negative reports added to your account.

The security deposit can be as low as $100 to 200. When you currently don’t have that much to spare, you might want to start saving up $50 to $100 until the money accumulates.

6. Don’t Have Too Many Debts

Your debt-to-income ratio should be lower, and you should minimize getting into debt. This is when you should sit down and write your creditors and the total amount of money you owe. When you’re always in debt, this can reflect on your report, and when you’re always maximizing your credit limit, this will show the lenders that you’re not too good at handling your finances.

The best way to go is to keep all of your debts below 30% of their limit. The issuer might make a comparison to your income and decide on whether you can afford to pay them or not. They will usually base their decisions on the figures and numbers that they see on your report, so you will have to make sure that everything is clean and stellar before applying.

However, know that a co-signer takes all the risks with the borrower, especially in times of default. If you’re not going to pay back what you owe, the co-borrower is going to be the one responsible for paying everything back, and this can result in damaged relationships.

You might want to be an authorized user of a savings or checking account when you want to boost your chances of getting approved instead of getting help from a co-signer. See more about co-signers on this page here.

Proven Tips to Build your Credit

Applying at the Right Place

You might want to start with the bank where you have had an established relationship for years while trying to get an unsecured credit card. Getting the first card is always challenging, but afterwards, it will be a breeze, especially if you prove that you’re creditworthy. When you already have a checking account, you can start with a credit builder loan or a secured credit card and work towards paying everything in full at the end of the billing cycle.

Retail Offers

Some companies provide retail offers, and this is easier for beginners. They are generally issued from a group of stores or a credit union. It’s easy to get approved with them fast, but they can come at a higher price. The interest rates of the remaining unpaid balance can be higher, and before you know it, you’re already buried in debt. On the other hand, if you’re able to meet your monthly obligations in full, this can be a good starting point to getting a major credit card.

Secured Cards

As mentioned, secured credit cards will require you to have a deposit before they can be issued to you. The limit is generally the same amount as the figures in your savings card, and they can be converted into an unsecured loan when you are a responsible borrower. Always keep your accounts in good standing, and the bank may offer to convert them before long.

Some of the issuers may offer you different rates. Shop around and look for providers with the best terms so you can repay everything in full at the end of the month. The ideal cards are those that don’t have any annual fees and have lower interest rates.