Getting Approved for Credit Cards

How do Issuers evaluate if I am creditworthy?

Issuers determine credit worthiness by what are called the three C's of credit (capacity, character and collateral). Capacity refers to your ability to pay given your income and existing debt. Collateral refers to any assets you have that can secure payment (e.g. bank accounts, home ownership). Character refers to factors such as your payment history and length of employment. The criteria for accepting applicants vary between issuers and credit card products.

Should I apply for pre-approved card offers?

Pre-approved credit cards just ain't what they used to be, folks. Read more about Pre-approved credit cards (article by Gerri Detweiler).

How can I evaluate if I am creditworthy?

You can get a very good idea by looking at your credit report(s). Three separate bureaus maintain a different snapshot of your financial history and provide copies of this report to creditors upon request. It is important to make sure information on these reports are accurate, especially if you have been turned down for credit and don't know why. You can request a credit report directly from the major credit bureaus: Equifax: 800.685.1111, Experian: 888.397.3742, TransUnion: 800.916.8800.

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