By                    Joshua Rodriguez
  • Credit Score Requirement
  • Other Factors

Remember that meeting minimum credit score requirements helps applicants get approved, but it isn’t a guarantee of approval. Credit card companies typically use a wide range of qualifications to make approval decisions. 

Other Factors Lenders Consider

Most lenders use various factors to determine which applicants receive their credit cards. This means they may decline some applicants with excellent credit. Here are the most important factors lenders typically consider other than credit scores:

  • Credit utilization. The more money people borrow, the higher their chances of bankruptcy in the future, so lenders typically pay close attention to credit utilization when deciding to approve or decline an application.
  • Debt-to-income ratio. A high debt-to-income ratio is another red flag that the applicant may face bankruptcy in the future. As a result, lenders carefully consider applicant debt-to-income ratios before approving or rejecting a loan application.
  • Age and mix of credit accounts. Lenders are more likely to approve an applicant when they have multiple types of loans that have been open and in good standing for years. This shows lenders the applicant is a responsible borrower and likely to pay as agreed.
  • Age of applicant. Lenders also pay close attention to the age of the applicant. Although younger borrowers may be approved for student credit cards, traditional options are typically more readily accessible to consumers over 22 years old.

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Good To Know

Those struggling with poor credit should start by getting a copy of their credit reports and working to rectify the cause of their poor credit scores. Secured credit cards can also help improve credit scores if consumers use them wisely.