7 Tips to Get Approved for Credit

By Lisa Phillips on May 9th, 2011 in Rebuild Credit Scores

Take the stress out of applying for credit by knowing how to get approved for credit and where to apply for credit if your credit scores are less than perfect.

Typically even low credit score consumers can get approved for credit but; the terms may be less favorable compared to consumers with good credit. Here are 7 tips to get approved for credit cards, car loans and retail credit cards:

1. Get your credit scores

The first step any consumer should take before applying for credit is to know your credit scores. Eliminate any chances of surprise at the car dealership, bank or even in a retail store. You will save time and unnecessary credit inquiries. Pulling your own credit report creates a “soft inquiry” and will not lower your credit score. Know where you stand and monitor your credit score with Equifax ScoreWatch™

2. Use the highest score

Find out which credit bureau contains your highest credit score. Once armed with this information you can approach creditors who use that particular credit bureau. This may not work in all cases as many creditors, especially auto dealerships pull credit reports from all three credit bureaus. However, you may be dealing with a credit union and some have been known use just one credit bureau, mainly Experian, in order to pull credit reports.

3. Get acquainted with your creditor

You can save a lot of time by asking your potential creditor a few questions. Let’s say you want to open a retail credit card account at Macys. There is no harm in calling Macy’s credit department and asking which credit bureau they pull. They may or may not tell you but you never know until you ask. Sometimes it depends on what part of the country you live in but some creditors use a specific credit bureau for opening accounts while most report monthly payments to all three credit bureaus once an account is opened.

4. Visit your local credit union

I cannot stress this enough. Some credit unions have more lenient credit standards than bigger banks and credit card companies. You may be surprised at the difference in treatment you can get at a local credit union. As mentioned above many credit unions utilize only Experian when determining credit approval. If Experian contains your best credit score than you have a good chance of getting approved for credit products the credit union offers. If you are not approved, credit unions will work with you. They may even offer a secured personal loan and once you prove you are a good credit candidate, the secured loan can turn into an unsecured loan.

5. Try Online Approval for Bad Credit Car Loans

Shopping for and financing a car can be stressful by itself; but shopping for a car loan when you bad, little or less than perfect credit can be a nightmare. Take the stress out of shopping for a car loan by getting approved for credit before you venture a car dealership. USACarCash is a service that provides Free Auto Loan Quotes without obligation from its Nationwide Network of qualified, hand selected dealerships to consumers with or without perfect credit. All applications reviewed in 60 Seconds or Less!

6. Apply for an unsecured credit that can help you build credit

Building and rebuilding credit is a process and a big part of that process is getting approved for new credit. Once you get the new credit it is imperative you pay all bills on time. Set up an automatic bill pay if necessary but do not miss payments. Stay away from maxing out your new and any older credit card accounts. Balances that are kept to at least 30% are favorable in the credit scoring system. The Orchard Bank MasterCard is an excellent credit card choice for people looking to build their credit. Get prequalified online in just 30 seconds!

Orchard Bank® Visa® was voted one of seven best cards for bad credit because of low fees and good rates to consumers trying to build or repair their credit. There is no application fee and no monthly participation fee although there is an annual fee which is not uncommon to most credit cards. Over 2 million consumers have rebuilt their credit with an Orchard Bank credit card.

Credit One Bank – Visa®Platinum Card can help consumers establish or rebuild credit. This card is specifically designed for consumers with less than perfect credit. Credit One Bank allows consumers to get pre-qualified for a credit card without affecting their credit score and they offer a credit limit up to $1,500. Apply Now!

7. Get Secured Credit Cards if Necessary

Everyone is familiar with secured credit cards. It is not an ideal way of getting approved for credit but it can be rewarding. Make sure the bank or credit card company reports to at least one or preferably all of the major credit bureaus before you obtain any secured credit card. Your goal is to establish a good payment history so credit reporting is imperative. The Applied Bank® Secured Visa® Gold Credit Card has monthly credit bureau reporting, a low 9.99% fixed APR, there is no annual fee or account set up fees.

If you do not get approved online or by mail, all is not lost. Give the creditor a call and ask if you can provide any information to aid in the approval process. Some applications are declined because certain basic information could not be verified, such as home phone or address. In some instances you can provide the creditor with proof of residence, employment, utilities and you may get approved. Make the call, you never know.