Credit Card Application In Canada | Tips to get your Credit Card Application Approved
In life, there’s always that thing as the first time, and that also applies credit card application. And even if it’s not your first credit card application, the process of getting a credit card application approved is overwhelming nonetheless.
Together we’ll be exploring some tips and hacks to get your credit card application in Canada approved. For most people, credit cards are the best way to earn points and miles for free travel especially with opening bonuses.
However, credit card application in Canada can be a difficult process even for those who have been collecting points for years. When you get deeper into the hobby you’re likely to have a large amount of credit offered to you so your shores can be sometimes hesitant to extend more credit to you.
So, throughout this article, I’m going to share my top ten simple tips on how to get your credit card application approved.
10 Tips to Getting Your Credit Card Application in Canada Approved.
1. Understand your credit score and history; it used to be pretty tough to get a hold of your credit score, however, nowadays it’s easier than ever. Most credit card issuers provide you access to your score.
There are also free sites like Credit Karma, Credit Sesame and Quizzle which should give you an idea of your score, just keep it in mind that most of these services are pulling from one of the three credit bureaus so you may want to check in with all three.
Lastly, you can request a full credit report every year from annualcreditreport.com which includes data from all three major credit bureaus I recommend reviewing your credit report every year to make sure that you don’t have any miss reported accounts or discrepancies.
2. Search for the best available offer when applying for a specific card, make sure you do a quick Google search to see if there are any better offers for the card or check our list of the best credit card in 2019. It’s common for issuers to have different bonus offers depending on the landing page, so it pays to look around for the best offer.
3. Take a screenshot of your offer when applying, this not only helps if you don’t receive your offer and need to contact the issuer but also helps you to remember the terms and conditions for the bonus. Most bonuses will require you to spend a certain amount within the specific period so it’s helpful having a record of it.
4. State your entire income; this is an area where people often shortchange themselves. Make sure you afford your total income from all sources, I know many of you have side hustles and gigs. Don’t hesitate to include the income that you earn from these sources in your total.
I advise against misrepresenting the information in any way, you want to make sure that you’re representing the big picture and improving the odds for approval.
5. Apply for multiple cards at once, going with the famous saying “don’t put your eggs in one basket” this is a common trick used by the coins community and is sometimes referred to as an “App-o-Rama” or “AOR”.
If you’re looking to apply for two or more cards at once it’s better to apply for the cards on the same day preferably around the same time. The reason for doing this is because the issuers will not see the credit inquiry from the other issuers if you apply at the same time.
Keep in mind that you shouldn’t use this trick to apply for cards from the same issuer as they will definitely see your multiple applications. But if you were to apply for a card from American Express and one from Capital One on the same day it should work just fine also make sure your credit score is high as you’ll like to see a slight drop after the multiple credit inquiries are processed.
6. Be mindful of your application dates and credit inquiries. The general recommendation is to wait at least 90 days between new credit card applications, of course, there are other factors to consider like chases 5:24 rule: ‘If you have opened 5 or more new credit cards in the past 24 months (from any issuing bank), you will not be approved for a new credit card from Chase’
7. Call the reconsideration line if you’re not approved. If your credit card application is not approved immediately, you may want to consider calling the issuers’ reconsideration line, just be sure to be polite and respectful. When I call these lines I usually say that I wanted to call in and see if there was any further information needed to get my application approved.
But one thing you should consider is not until you get an actual denial you shouldn’t call the reconsideration line as they often have a more comprehensive review and approval process.
8. Consider transferring your available credit. I found that issuers are sometimes reluctant to give you additional credit if you already have a lot of available credit with them when speaking to a rep on the reconsideration line, you may want to consider offering to move some of your available credit to the new card if they’re willing to approve you.
I’ve tried it several times and it seems to work really well especially when I’ve had a premium card with a huge available credit limit that I never plan to utilize.
9. Considered downgrading cards or changing them to other products. This tactic won’t allow you to get a bonus, but it can be useful when you want to get rid of a card with a high annual fee instead of simply canceling the card. You may want to opt to downgrade or convert it into a free version of the card.
An example would be converting a Chase Sapphire card to a Freedom card or an American Express credit card to an everyday card. This not only allows you to retain your points but also avoids any negative impact on the age of your accounts on your credit history.
10. Don’t limit yourself to personal cards. Many of us are eligible for business cards even if we don’t have a full-blown business. Things like selling items online, performing a service, or consulting can make you eligible for a business credit card just make sure you’re transparent about the income that you earn.
You don’t need to have a huge income stream for them to approve you and it’s better to be truthful and honest to avoid any audits.
Those are my top tips for credit card application Canada. Do you have any suggestions on improving the chances of getting approved, please share them below and also let us know if you have any question.
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