Last Updated: May 10, 2024
6 min read
Getting a credit card
Key points about: qualifying for credit cards
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Your credit history usually impacts the type of credit cards you can get.
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Credit card issuers will consider your income when deciding if you qualify for a credit card.
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You can check whether you’re pre-approved with no harm to your credit.
If you have a good credit score, you may be able to qualify for a credit card with great rewards, like theDiscover it® Cash Back credit card. If you don’t qualify for this Discover it® Card due to a low credit score, you may qualify for other cards.
If your credit score is lower due to missed payments, high levels of debt, or other negative marks on your credit report, you may be limited in the credit cards you qualify for. One way to find out is to check if you have any pre-approval offers for a credit card before you apply.
Did you know?
If you’ve received a credit card offer that says “pre-approved,” that likely means your credit score and financial history match at least some of a card issuer’s criteria.
How do I get pre-approved for a credit card?
You may receive a pre-approval offer, or you can use an online tool to find out whatcredit cardsyou may be qualified for before you apply.
Do pre-approvals hurt your credit score?
Pre-approvals use soft inquiries, which don’t affect your credit score because you haven’t applied for credit. It’s important to remember that pre-approval doesn’t always guarantee credit card approval. Once you apply for credit, the lender still must place a hard inquiry on your credit file, which can affect your credit.
Why you should check if you’re pre-approved for a card
Pre-approval means the card issuer feels confident you can be approved for a credit card. Pre-approval gives you these benefits:
You avoid hurting your credit score
Credit card issuers usually place a soft credit inquiry on your credit report when they check whether you're pre-approved for the card, and this doesn'taffect your credit score. When you submit an actual application for a credit card, the lender places a hard credit inquiry on your credit file, which can impact your credit score.
You save time by applying only when you know you’re pre-approved for the card
If you receive a pre-approved credit card offer, you’ll likely qualify for the card, unless you have had recent negative changes to your credit report and score. So, you won’t spend time researching and applying for cards that you may be denied.
You can receive unique credit card offers
Also, since pre-approval means a card company won’t ding your credit score when you request offers, you can browse all an issuer’s card options. This means you could compare cards for the best perks, like 0% introductory APR, introductory bonuses, and appealing cash back rewards.
How do lenders decide if I qualify for a credit card?
Your credit cards are essentially loans you get from a credit card issuer, so before approving you for a credit card, credit providers look at your credit history to determine how likely you are to pay your credit card bill. Here are examples of the types of information that a credit card company may review:
Credit score
According to the Consumer Financial Protection Bureau, your credit score tells a lender how likely you are to repay your credit card balance on time.MostFICO®Credit Scores range from 300 to 850 and are calculated based on your unique credit history. Things that affect your FICO® Score include missed credit card payments, credit utilization, age of your credit accounts, and your credit mix. Your credit score helps lenders decide what interest rates to offer you and what credit cards you can get.
If you have good scores, you’re seen as a lower-risk borrower for lenders, which makes you more likely to score favorable interest rates and bonuses on your next card. By contrast, you’ll probably have a hard time qualifying for the best benefits lenders have to offer if you have a lower credit score.
Income
A credit card issuer may use your income to determine whether you get a new credit card and, if so, how much credit they can give you.
There may be other factors such as housing information that an issuer may consider.
How do I find out if I’m pre-approved for a Discover® Card?
The Discoverpre-approval toolcan help you see if you’re pre-approved with no harm to your credit score.1 Since the request for pre-approval only results in a soft inquiry, there’s no impact to your credit score.
What credit cards can I get with Discover?
The credit cards you qualify for depend on your credit score, your credit history, and your income. People with high credit scores, a positive credit history, and high income can typically qualify for more kinds of credit. While those with a low credit score, missed payments, and low income may be more limited in the type of card they can get.
Once you have an idea of the type of card you may qualify for, you can compare Discover cards against other industry-leading cards to find one that fits best with your spending habits.
Compare
What credit score do I need to get a credit card?
The minimum credit score to get a credit card depends on the card. There’s no exact number that your credit score must be to get a credit card.
90% of top lenders use FICO® Credit Scores.2 If you have a low credit score or limited credit history, you still have options. For example, there’s no credit score required to apply for a Discover it® Secured Card.3 Generally, the minimum credit score needed for a secured card is lower than the minimum score you need to qualify for an unsecured credit card, or a credit score may not be required at all.
Similarly, student cards are designed with students in mind who may have little or no credit history. There’s no credit score required to apply for Discover Student credit cards.4
How can I be approved for a secured credit card?
With a secured credit card, you provide a deposit equal to your credit limit, depending on the issuer. This is less risky for the card issuer since they’ll be paid from your deposit if you fail to make your payments. This means that your credit score doesn’t have to be as high to get this type of credit card as compared to an unsecured card.
With a Discover Secured Credit Card, once you show a pattern of paying your monthly credit card bill responsibly, you can get your deposit back after 6 consecutive on-time payments and maintaining good statuson all your credit accounts5.
How can I help my chances of getting approved for a credit card?
Pay your bills on time
Credit card issuers want to see that you manage your money well, which means your payment history is crucial. Lenders want to make sure you can pay back your credit card debt.
Pay down your debt
Lowering yourcredit utilization ratio (the percentage of your available credit that’s in use) might help your credit score. Yourcredit utilization ratiois another very important influence on your credit card qualification. Track where your money is going and create a payment plan to help reduce debt.
Don’t apply for too many credit cards at once
Each credit card application generates a hard credit inquiry, which may hurt your credit score. Applying for too many credit cards at the same time can hurt your score enough that one or more card issuers may decide you don’t qualify for the card.
While pre-approval doesn’t impact your credit score because the creditor will place a soft inquiry on your credit report, a hard inquiry can hurt your score. Before you submit your application, you should make sure you want the credit card and you feel confident that you’ll get approved.
