You really need to have a credit card and you believe that you are qualified to get one. So you visit your bank and apply for a credit card. Do you know the chances the bank will approve your application? In general, issuing banks evaluate your credit history and in case you fail, they will deny your application. The following are some important pointers to consider if you want to increase your chances of obtaining the best credit cards in the Philippines.
Pay off Your Debts
Credit card companies and banks make use of an affordability calculator as they evaluate your application and as they assign a credit limit. When you can, consider closing down all the credit cards you had a bad record with and pay the loans you got under your name. All kinds of debt can impact your financial status so ensure you pay off debt first. In addition, when you have had serious debt issues, it will be difficult for you to please the band and prove you will not have the same issues again with them.
Keep a Credit Profile
When your debts are paid off, this would make a good credit record. However, do not think that zero liability is great. When you haven’t had credit accounts or debts yet, your possible lender would have no clue if you really have the ability to maintain a credit line.
Begin and maintain a great credit profile. Banks that issue credit cards gauge the risk they need to take by letting you borrow money from them and evaluating their profitability from interest rates, fees and charges your spending behaviour may incur.
Minimize your Debt to Income Ratio
Consider bringing your monthly debt payments to 12 percent of what you make every month. Remember that the lower debt the better. Your credit card application will undergo an underwriting process. Your credit application will be evaluated by the underwriter to determine the profitability of the application to you and to the bank. In the process, the underwriter will be able to determine how risky you are when it comes to repayment.
Maintain a Huge Savings Account
When you have many accounts with big deposits, you are great to go. However, when you own various deposit accounts which vary in savings, ensure you put big deposits in banks you are applying for. For instance, when you apply for hsbc credit cards, ensure you have huge savings in the bank itself. This serves as the reference of the bank as they determine your financial capacity and when evaluating your cash flow’s stability.