How to apply for a credit card

Summary

• Before applying for a credit card, you should check your credit score and take the time to compare credit card eligibility requirements, benefits, and terms.
• You may apply for a credit card online, by phone, or by mail.
• If you’re approved for a card, make sure you understand the terms, how to make payments, and how interest and fees are assessed, so you may use the card responsibly.

A credit card could be a useful and rewarding financial tool. However, the credit card application process may be confusing, even if you already have one. There are many credit cards available on the market, and many issuers, and each may have different benefits and eligibility requirements. This guide provides a general overview of the credit card application process to help you prepare.

Before you apply for a credit card

Before applying for a credit card, it’s important to understand your creditworthiness and do some research to find the right card for you. Here are some steps to take.

Check your credit score.

Your credit score is a three-digit number that indicates to lenders and credit card issuers how likely you are to repay debt. A higher credit score could qualify you for a lower annual percentage rate (APR) or make you eligible for cards with higher credit limits and better benefits.

You could check your credit score at each of the three major credit bureaus (Experian, Equifax, TransUnion) once a week for free at AnnualCreditReport.com.

Review credit card requirements.

Each credit card issuer has its own set of application requirements, but generally, you need to provide:

• Name
• Address
• Age
• Social Security number
• Annual income
• Monthly housing payment

Card issuers may publish eligibility requirements for certain cards, such as credit score or income.

Compare credit card benefits and terms.

There are many credit cards to choose from, each with its own benefits and terms. Some factors to consider include:

• APR: The annual percentage rate is the annual cost of using the card, including interest rates and fees. You may qualify for a lower APR with a strong credit score, but card issuers usually publish APR ranges for each type of card.
• Fees: Annual fees, late fees, or application fees could impact the cost of using the card.
• Rewards: Points and rewards programs are one of the best reasons to use a credit card. Cards may offer rewards like cash back or bonus points on gas, groceries, or travel purchases. Think about how you plan to use the card and what kind of benefits you'd like before making a decision.

Check for pre-approved offers.

Pre-approved offers are credit cards that you’re likely already eligible to get. Finding out what cards you're pre-approved for has no impact on your credit score, and many issuers let you check for pre-approved offers online. Go to a card issuer’s website and provide some basic information like your income and employment status to get an idea of what cards you might pre-qualify for.

Many card issuers also send pre-approved offers in the mail. If you’re interested in a card, you may follow the instructions in the mailer to see if you’re eligible.

When you're ready to get a credit card

There are several ways to apply for a credit card.

Apply online.

Applying online is usually the fastest and easiest way to apply for a credit card. Some issuers may be able to provide a decision instantly.

Apply by phone.

Calling the card issuer's customer service line is a good way to learn more about cards from a representative, who can then help you get your application started.

Apply by mail.

Some card issuers may allow you to request a credit card application by mail. Fill it out, send it back, and receive a decision through the mail.

Apply in-person.

Many banks offer credit card programs. You may go to a physical branch location to apply for a card, if you’d like.

After you apply

Your application was approved.

If your application is approved, you usually receive your card in a few business days with instructions on how to activate it and set up your account to make payments online. Once you do, you're free to start using it.

Your application was denied.

If your application is denied, the card issuer has to send you an adverse action notice within 30 days explaining the reasoning. With this information, you may take steps to pay down debt or consider other card options before applying again.

Applying for a credit card is simple.

The hardest part of getting a new credit card is researching the right card for you. With so many options offering benefits like cash back, points, low intro rates, and more, it may feel overwhelming to figure out what makes the most sense. But once you have determined the card that offers the best rewards that you qualify for, the application process may take just a few minutes online.