bank rates

FICO Score Can Only Take You So Far

When applying for a credit card, the most important factor in determining whether or not the application gets approved is a FICO score.

3 areas of your credit history issuers will examineBut even though a FICO score is extremely important when issuers review your application, other factors also are considered.

The next time you fill out a credit card application, here are three other areas of your credit history the issuer is sure to examine:

Income level — A lot of people think it’s OK to lie about this one a little, but credit card companies aren’t taking your word anymore about how much you make.

Issuers like Iberia and Pulaski Bank require copies of your pay stub or W-2 before they’ll even consider an application, and larger issuers like Citi and Chase follow up on the information you’ve provided.

If they see an income level of $500,000 but a credit score of 450, something usually doesn’t add up. Make sure you report an accurate depiction of your family income — and the higher, the better.

Owning checking and savings accounts — You might notice that every application asks if you own a checking and/or savings account. If you check no to both, you damage the chances of getting approved.

Card issuers need to see you have a viable payment method that allows you to make your credit card payments on time every month. Even though you might find another way to pay your bill, not owning a deposit account sends a red flag.

Income source — The best-looking income, in the eyes of credit card issuers, comes from a full-time job.

Even though income from things like retirement or odd jobs can lead to a stable financial life, it’s not the best when looking for a credit line. Just as important is the length of employment history, because working at a job for 10 years bodes better than working at a job for 10 weeks.

A solid credit history weighs heavily when looking for a line of credit, not only to win approval for a card but to determine just how large of a credit line you’ll get.

Improving your credit should be the first action before applying for a quality credit card. You should also secure a high, reliable income that gets deposited into your checking or savings account.

If you’re ready to apply for a new card, compare rates and rewards from dozens of credit cards in our database.

Don't miss out on the next bank deal. Get the newest deals delivered straight to your inbox!

Comments (0)
1 Star2 Stars3 Stars4 Stars5 Stars (2 votes, average: 4.50 out of 5)
No Existing Comments

Comments are closed.