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10 ways to increase your chances of getting a credit card approved

Getting a credit card may at times be difficult in some situations. If you don't have a good credit score or proof
of income, you may be faced with the problem of being denied a credit card. However, there are some things you
can do to improve your chances of getting a credit card.

1. Ensure the application is filled completely

Take the time to complete all details required in the application in full together with all supporting documents. If your
application is missing vital information, you risk the chance of getting your credit card declined. In case of any doubts,
you can always talk to the relevant sales or branch staff.

2. The minimum age limit

A credit card is a financial tool that has to be managed responsibly. Hence, age plays an important part in qualifying for a credit card.
While the minimum age limit is 18 years there can be some exceptions, where you can be an authorised user on your parents credit
card, through a supplementary credit card.

3. Maintain a proper income

An important criterion when applying for a card is a regular income. While income limits may vary by the credit card issuer, a regular
monthly income is necessary to be eligible for a credit card. Seldom do credit card issuers publish minimum income requirements for their
credit cards, so its up to you to estimate which credit card fits your income.

4. Having a steady employment

An unstable work history could have your credit card application denied. Credit card issuers prefer applicants who have been in their job
consistently. If youve been job-hopping and have periods of unemployment, you may run the risk of not getting approval for a credit card.

5. Having a good credit report makes all the difference

You can be certain that the card company you are applying to will look at your credit file during the approval process to determine how reli-
able you have been with your debts in the past. All banks, finance companies and credit card issuers maintain a detailed track record of your
payments and these are centrally reported and maintained with the Credit Information Bureau of Sri Lanka (CRIB).
So maintaining a good credit history is very important. Credit card issuers not only look at the type of delinquency, they also consider how
long its been since you were last delinquent. A 90-day late payment from six years ago wont hurt as badly as one from six months ago.

6. Maintain a healthy credit score

Your credit card application will be scored based on all details provided in your application such as personal and employment details. Infor-
mation given under your financial details too will be scored to arrive at the final approval score. Attributes for scoring and score cut offs are
developed based on a statistical modeling of banks historical performance to provide a better and effective credit decision.

7. The use of multiple credit cards

Having multiple credit cards may prompt the thinking of irresponsible financial behaviour. Besides having too many credit cards, if you have
high account balances on them, this could flash a red flag to the issuer. Its always best to manage youre spending with a minimum
number of cards. You also minimize the risk of losing multiple cards, if your wallet is stolen.

8. Maintain a proper loan balance

If you hold any existing loans or other borrowed facilities, make sure they are serviced regularly without any default or delay in payment. If
not, credit card issuers will be hesitant to give you a credit card, assuming you may fail to make payments. So leave no room for long out-
standing balances to accumulate.

9. Maintain a proper credit card balance

Credit card companies want to see that youre only using a portion of the credit thats available to you. If youre using too much of your
available credit, especially if youve maxed out your existing credit card/s, you may run the risk of having your new credit card application
denied.

10. A verifiable application

All applications submitted are verified to check the genuineness of the applicants. Generally your residence, employment and income are
verified independently before approving your credit card. So please double check that all details and telephone numbers given are up to
date.

Visit www.hsbc.lk

Disclaimer: The material contained in this Article are provided for general information/awareness purposes only and do not constitute any advice on the subject matter.