Credit card providers usually check a person’s debt-to-income ratio to determine whether he or she is eligible for new credit. This ratio is a simple calculation that divides total monthly debt by total monthly income. If the DTI is high, the applicant may be declined. This is why it is important to reduce debt before applying for new credit. Likewise, if an applicant has settled a previous account, it will show up on their credit report, lowering their eligibility for credit card.

What are pre-approved credit cards?

Credit card issuers may also ask for additional information, such as a person’s current address, current employer, and main source of income. They may also ask about other people in the household, such as a spouse or partner. You can also include this information in your application, if it is relevant.

Many issuers also offer pre-qualification status for their cards. While this doesn’t guarantee acceptance, it does increase your chances of getting approved. This is because lenders will search a list of reliable consumers before approving you. These lenders will pull your credit report, but it will only have a minimal effect on your score. It may take up to two days for you to receive a pre-approval notice.

When you get pre-approved for a credit card, you’ll have fewer restrictions and can browse issuer options. Plus, you’ll be more likely to get the desired perks like 0% introductory APR or introductory bonuses. Some credit cards may also offer cash back rewards.