Singaporeans now prefer going cashless. Learn your way by understanding the 10 guaranteed ways to get your credit card approved.
We are now fast approaching when Singaporeans will go cashless in all transactions, whether for shopping, dining, or entertainment. That is why most Singaporeans usually have a credit card or two (some even have five).
In the past, we couldn’t survive without cash. But now, it is hard to go about the usual errands, bills and expenses without this plastic card.
While it seems to be easy to apply for a credit card, there are still some individuals who get rejected. When you think you can get hold of your new credit card, the reality will strike you straight to the heart as your bank coldly declines your application with silence. And you are left alone wondering why you failed to get your credit card approved.
Here are some ways to get your credit card application approved.
We all know that banks are great fans of credit reports. It is the biggest reason you have to take care of yourself when applying for a credit card.
Know the things that might break it apart from such as multiple loans. Your bank can quickly discover that you have been recently shopping for loans and paying some.
If you are currently paying a loan or two, it is better to hold off your credit card application until you have successfully settled the short term ones.
Some Singaporeans applied for a couple of loans because they had underestimated their needs. Since the first loan fell short, they needed to use it for another one. As a result, they pay two loans simultaneously with two interest rates.
Also, if you already have a couple of credit cards in your wallet, then your bank will be worried if you can handle another one. It is because credit cards are considered loans. If you have a lot of existing loans, then there is a possibility that you will end up paying late or else defaulting.
Though the application forms seem tedious and the banks ask for a couple of documents, you have to comply and fill in every needed information.
Banks will not process your application if your form is incomplete, your documents have inconsistent data, or worst, you lack a requirement.
Defaults and bankruptcies are recorded in the credit reports. Unfortunately, these will stay there for a couple of years to absolutely ruin your chance to get big loans with low-interest rates.
While you can still get loans from other lenders, you can only get a small loan. In addition, your credit card application will indeed be rejected if you give ongoing bankruptcy proceedings or litigations.
Banks need your credit history to have an idea about your repayment behaviour. Having no history will mean that the banks have no record to check if you are a good payer or not. As a result, you will post as an unpredictable risk like those with bad credit scores.
To build up your credit history, apply for a small loan and repay it diligently. Once you get your first credit card approved, use it every time you shop and pay the bills on time.
If you already have a credit card or existing loans, it is best to pay your dues on time. Diligent payment helps to build an excellent credit history. But, you are also avoiding late payment penalties, which can be your financial burden.
What if you have seen a couple of credit cards you want to get? Then, isn’t it better to apply for each and find out which one will be approved? Wrong. That is a bad idea.
If you apply for a credit card, the bank will ask the credit bureau to copy your credit history. The credit bureau will record the bank’s inquiry in your credit report. This way, other banks (and licensed lenders) you apply to will see that you have been recently using multiple credit cards simultaneously.
Then, they will interpret your actions as being credit hungry. Therefore, it is better to apply for another credit card after some time.
Before applying for a credit card, make sure that you are eligible. Banks require applicants to be of legal age, have a regular paying job, have enough salary to repay loans and credit cards, and be a Singaporean or permanent resident.
If you do not meet the eligibility, you will be rejected outright.
A recently approved card means new financial responsibility. If you just got a card in your name, wait for a few months before applying for another card. Multiple cards may mean that you are desperate to make more expenses.
Delinquencies never fail to pull your credit score down. That is why you have to pay your loan due and bills diligently. Make sure not to tarnish your credit history by limiting your loan, as it takes years to rebuild it.
Known for easy approval but has high-interest rates. If you have no credit history, you will have a higher chance of getting a credit card approved. Store credit cards such as DBS Takashimaya American Express Card may set you off to a good start.
The best way to deal with your bank is to prove that you are creditworthy. But you have to make sure that you are applying for the right card for the right reasons.
If you are getting one to make a big purchase, you can just get a personal loan.