So, you’ve submitted your credit card application: what’s the next step?

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Applying for a credit card can pave the way to financial security and rewarding perks. Not only does it contribute to your credit history, but it can also help you accumulate valuable rewards for travel, household expenses, and more. However, these benefits depend on managing your credit wisely, so make sure to pay off your balance monthly and avoid overspending. After you submit your application, several steps unfold before that exciting new card reaches your mailbox. Here’s what you can expect next:

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The bank conducts a credit assessment.

Soon after you submit your application, the bank performs a credit check and confirms your identity. This process includes evaluating your credit history and score to gauge your creditworthiness. The bank may reference one or more of the three primary credit bureaus: Experian, Equifax, and TransUnion. While all banks use at least one, Capital One checks all three. Your credit score will significantly influence the approval decision based on the type of credit card you’re seeking.

Generally, a good or excellent credit score, typically defined as 670 or higher, is required for a travel credit card. You may experience a 2-5 point dip in your credit score with each inquiry, but this can recover within 1-2 billing cycles if you are approved and manage your new card wisely. It’s wise to be selective about the cards you apply for and steer clear of those you may not qualify for.

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Tips to enhance your chances of approval

Before applying for a credit card, there are several steps you can take to boost your approval chances. Here are three effective strategies:

Check your credit score in advance

To increase your likelihood of getting approved for a credit card, it’s wise to check your credit score before applying. You can access your credit score for free at annualcreditreport.com. Make sure your credit report is free from errors that could negatively affect your score and your chances of approval. Reviewing your credit score also helps you avoid applying for a card you might not qualify for, saving you from a potential 2-5 point drop in your score for a card you won’t get.

Focus on boosting your credit score

If your credit report is accurate but your score remains low, consider taking steps to elevate it before applying for a credit card. One effective strategy is to pay your credit card bill in full and on time each month. Additionally, keep your utilization ratio below 30%. For instance, with a total credit limit of $5,000, aim to maintain a balance of no more than $1,500 by the end of your billing cycle.

Apply only for cards you are likely to get

To enhance your chances of approval, only submit applications for cards you meet the qualifications for. If your credit score hovers in the low 600s, it’s unlikely you’ll secure a card that requires good to excellent credit. Utilizing your bank’s pre-approval tool can help identify which cards you may qualify for without affecting your credit score through a hard inquiry.

If your credit score is classified as poor (300-579), you might consider applying for a secured credit card. These cards cater to a broader audience with lower credit scores. The main requirement is a deposit, which will set your credit limit and can be refunded after 12-18 months of consistent on-time payments. At that point, the bank may also promote you to a standard credit card with a higher limit, further aiding your credit journey.

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Your application undergoes assessment

After the bank reviews your credit and finds your score acceptable, your application will undergo a more detailed evaluation. Banks consider various factors, such as your income, any previous relationship with them, and other criteria to assess your ability to repay debts. These decisions are typically made in seconds, resulting in either approval or denial.

In some cases, the bank may require additional time to assess your application, which will display a “needs further review” notification on the results page. If this occurs, consider reaching out to the bank to determine if they require any more information from you. Often, it may just involve confirming your identity, which can be done swiftly.

It’s also wise to call the provided number if your application is denied. Applications can be turned down due to inaccuracies in your credit report or if you’ve inadvertently frozen your report. It’s definitely worth contacting the bank to understand the specific reason for the denial and to advocate for yourself. Highlighting your long-standing relationship with the bank (if applicable) and your track record of repaying debts can help make your case.

Occasionally, the bank may not approve you for the credit card you applied for, but instead offer a more basic version. For instance, if you seek a Capital One Venture X Rewards Credit Card, the bank might provide you with a Venture Card instead, which offers similar benefits but has slightly lower credit standards. This isn’t bad news; it gives you a new credit line to start building your credit history. Over time, you can show that you’re a responsible customer and request an upgrade after a year.

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Once approved, your card will be sent to you by mail.

If your application is successful, your card will be sent to the address you provided and should arrive within 5-10 business days. The specific timeframe will be noted on the approval page and may differ. Some banks offer expedited shipping for a fee, while others may provide it at no cost. This is often true for premium cards like the American Express® Gold Card, which I personally received in just a couple of days after approval.

Certain banks might even give you a virtual account number, allowing you to use your new card immediately. This is ideal for those who need a credit card quickly for a significant purchase, enabling them to start earning points and meet spending requirements right away (more on that soon).

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Activating your card

When your physical card arrives in the mail, you must activate it before using it for purchases. Typically, you can do this online, via the bank’s mobile app, or by calling the number on the back of the card. Sometimes, you may be asked to create a PIN for cash advances, but most of the time, you’ll only need to confirm the last four digits of the card and some basic account details.

When activating your card online, you’ll need to create a login account if you haven’t done so already. This will allow you to easily access your account information online. Make sure to choose a strong password following the guidelines to reduce the risk of your account being hacked. You may also be required to create a security word or answer security questions, which can be used to verify your identity when contacting customer support.

Finally, you may be prompted to opt for paperless statements. This means you’ll receive your monthly statement and other communications via email instead of traditional mail. This not only helps reduce paper waste but is also perfect for frequent travelers who want to ensure they don’t miss important updates from their bank.

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Meeting a spending requirement (if applicable)

Some credit cards offer a welcome bonus contingent upon meeting a spending threshold within a specific timeframe. For instance, the Chase Sapphire Preferred® Card offers 60,000 bonus points after you spend $4,000 on purchases in the first three months following account opening, which is equivalent to $750 when redeemed through Chase Travel℠. On the other hand, the American Express Gold Card requires $6,000 in spending over six months to earn 60,000 points. Additionally, you’ll receive 20% back in statement credits on eligible restaurant purchases worldwide within the first six months of Card Membership, up to $100 back. This limited-time offer expires on 11/6/24.

A smart strategy to meet spending requirements on time without falling into debt is to set up autopay for all your monthly bills. Whether it’s your mobile phone, water, electricity, or insurance bills, these routine household expenses can help you meet your credit card spending targets more quickly. If possible, consider prepaying your insurance premiums (e.g., for the next six months) as another effective way to reach your spending goals. Just remember to avoid exceeding what you can pay off each month.

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In summary

Navigating the credit card application process can feel daunting, especially when applying for premium credit cards for international travel or other significant perks. These cards offer immense value, potentially providing hundreds, if not thousands, of dollars in benefits each year. By familiarizing yourself with the application process and what follows, you can alleviate some stress and embrace the excitement of possible approval. If you're not quite at the required credit level yet, the tips above may assist you in reaching that goal.

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* Eligibility and benefit levels differ by card. Terms, conditions, and limitations apply. For more details, please visit americanexpress.com/benefitsguide. Underwritten by Amex Assurance Company.

Editorial disclaimer: The views expressed here are solely those of the author and do not reflect the opinions of any bank, credit card issuer, airline, or hotel chain. These statements have not been reviewed, approved, or endorsed by any of these entities.