What Is the Process for Free Credit Card Approval?


Quick Answer

Credit card companies tend to consider certain financial data points and other criteria that indicate an applicant's financial health and record of fiscal responsibility. Typically, companies examine an applicant's credit score and the specific factors that affect that score, including one's credit utilization ratio and the number of unpaid bills that show up on an applicant's credit history, as reported by Credit Karma. Other factors, such as a number of recent credit inquires or a history of using different types of credit in addition to credit cards, may have a positive or negative impact on the credit card company's final decision during the approval process.

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Full Answer

The formal name for the credit card approval process is "underwriting," according to Money Under 30. During the underwriting process, a financial institution will gather information to consider whether an applicant is likely to be able to pay off the debts they incur by using their credit card. Every credit card issuer has its own specific approach to the underwriting process, but the general approach is the same for all financial institutions. These organizations want to know whether an applicant makes a sufficient income and a high enough credit score to justify the risk of issuing a credit card. While having a high credit score can help ensure successful approval, that is not the only factor in play during the underwriting process.

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