-
Step 1
Get your Credit Report and Score. Once you have this knowledge you have the power to dictate your future. Find out which of the credit bureaus, Experian, Equifax and Transunion contains your highest score. Make sure you have cleaned up any inaccurate items to the best of your ability before you apply for a credit card, personal or car loan.
-
Step 2
Know your Creditor. You can save a lot of time by knowing your creditor. You can actually call a lender and even a credit card company and ask what is the minimum credit score they look for to approve credit and which of the three credit bureaus they use. Some banks will run more than one credit report from two different credit bureaus. Most credit unions will only run one credit report, usually from Experian, in making a decision to approve credit so try your local credit union first. Their credit criteria is usually easier to qualify for and the interest rates are often lower.
-
Step 3
Balances. Make sure your credit balances are up to date. In some instances the creditor is lagging a month or two behind in reporting to the credit bureaus. Dispute outdated balances. Call your creditor and ask them to report your correct balance. (Only if your balance is lower than what is currently being reported). If you explain to them that you are making a major purchase and the correct, lower balance will make a difference in the interest rate, they will often comply with your request.
-
Step 4
Use Your Household Income. Many credit card companies will ask you for your household income as opposed to your individual income. Use this to your advantage when applying for credit cards.
-
Step 5
Speak directly with the creditor. If you do not get approved, all is not lost. Give the creditor a call and ask if you can provide any information to aid in the approval process. You may still be granted credit. 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.
