Credit feels harder to get. Here’s what to do before applying for a new credit card

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Holiday shopping isn't slowing down for most Americans this year. Sixty-four percent of U.S. adults expect to spend the same or more than they did last holiday season, according to PayPal's 2026 Holiday Shopping Survey.

Credit cards can be a great way to help accomplish all your holiday shopping while earning rewards on your purchases. However, approval can be tricky depending on the card you're interested in. 

A Federal Reserve Bank of New York survey published in September found that more Americans report credit is harder to get than a year ago — a feeling that is backed by evidence. 

According to a separate Federal Reserve survey from October on bank lending practices, 6.0% of bank respondents — and 10.5% of large banks, in particular — said that standards for credit card approvals have tightened somewhat.

If you're worried about getting approved for a new rewards card ahead of the holiday shopping season, CNBC Select walks through a few things to consider before you apply.

What to do before applying for a new card

• Establish your must-haves
• Boost your chances of approval
• Consider credit limit, timing and bonus requirements

Senior reporter Jason Stauffer can answer your questions about how to make the most of your credit cards in his weekly Points Pro column. Submit yours here.

Establish your goals and must-haves in a credit card

First, establish what you're comfortable spending during the holidays. This includes spending for gifts, travel, food and expenses directly tied to the season. Ideally, you'll be able to pay off your card's balance in full each month to avoid interest charges. If you do end up carrying a balance, make it a priority to pay it off before you start spending on optional purchases again. 

Also ask yourself whether you really need another credit card, or if you should try to tighten your holiday budget. Holidays can easily tempt you into overspending, which also makes it a great time to start budgeting if you don't already. 

Quicken Simplifi is a budgeting app that lets you connect to over 14,000 different financial institutions, with categorized breakdowns of your spending, savings and income. It can also track your subscriptions, rent and credit card payments. While it doesn't offer a free trial, it does come with a 30-day money-back guarantee.

Quicken Simplifi

Learn More

• Cost

  50% off limited-time offer: $3.49 per month for the first year, then $6.99 per month (billed annually). Seven-day free trial

• Standout features

  Users can run customizable reports based on their spending, income and savings. Personalized spending plan adjusts in real-time.

• Categorizes expenses

  Yes, but users can customize

• Links to accounts

  Yes, bank, credit cards, loans, investment accounts

• Availability

  Offered in both the App Store (for iOS) and on Google Play (for Android)

• Security features

  Financial data from bank servers is transmitted using 256-bit encryption

Terms apply.

Pros

• Syncs with bank, credit card and investment accounts
• Customizable reports based on income, spending and savings
• Robust investments dashboard
• Refund tracker
• Includes subscription tracker
• Credit monitoring

Cons

• No free tier
• No bill-pay feature
• Quicken data can't be imported
• Can't roll over unused funds to the next month

Learn MoreView More

Before you begin looking at credit cards, make a list of a few non-negotiables. For example, if you travel abroad a lot, a card with no foreign transaction fees should be high on your list.

Also, decide which type of rewards you want to earn based on the redemptions you're most likely to make. If you want to use your rewards toward airfare or hotel bookings, look for points or miles-earning travel cards. Or, if you'd prefer to stick to statement credits or direct deposits, research cash-back credit cards. There are even cards that offer both options. 

For instance, the Citi Double Cash® Card earns a flat 2% cash back on all purchases: 1% when you buy and another 1% when you pay your bill. The card technically earns Citi ThankYou® Points that can be redeemed for cash back or used for travel, including transfers to Citi's hotel and airline partners.

Citi Double Cash® Card

CNBC Select Rating5.0Learn More

On Citi's site

CNBC Select Rating5.0Learn More

On Citi's site

Spotlight

Receive an intro APR for 18 months on balance transfers and earn at least 2% cash back on every purchase.

Credit scoreRegular APR

18.49% - 28.74% variable

Annual fee

$0

Welcome bonus

Earn $200 cash back

See rates and fees, terms apply.

Read our Citi Double Cash® Card review.

Our expert take

What makes the Citi Double Cash® Card special is that it sits near the top of its class in several categories. It is an excellent option if you want flat-rate rewards, a balance transfer intro-APR or no annual fee.

Pros & cons

• Balance transfers get a long intro APR
• Generous flat-rate cash-back rewards structure
• Earns transferable rewards
• No annual fee

• It has a foreign transaction fee
• Intro APR only applies to balance transfer
• Points transfer ratios are reduced compared to premium cards

More details

Highlights

Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.

• Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou^® Points, which can be redeemed for $200 cash back.
• Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
• Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 18.49% - 28.74%, based on your creditworthiness.
• Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
• If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
• There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).

Balance transfer fee

There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.

Foreign transaction fee

3%

Boost your chances of approval

Getting approved for a credit card depends on multiple factors, so there isn't one simple way to increase your approval odds. While your credit score will likely be the largest factor in most applications, things like your current debt, income, number of recent credit applications and more can all play a part.

Review your credit score and credit report 

If you need to improve your credit score a bit in order to get approved for the card you want, tools like *Experian Boost® could help you close the gap. 

Experian Boost is a free tool that lets you report payments for bills like your cellphone, utilities, streaming services, rent and more. Just connect your bank account and select the bills you want to be counted. Even better, Experian Boost works retroactively, meaning you'll get credit for past eligible bills.

Experian Boost®

Learn More

• Cost

  Free

• Average credit score increase

  13 points, though results vary

• Credit report affected

  Experian®

• Credit scoring model used

  FICO® Score

Results will vary. See website for details.

How to sign up for Experian Boost:

1. Connect the bank account(s) you use to pay your bills
2. Choose and verify the positive payment data you want added to your Experian credit file
3. Receive an updated FICO® Score

Learn more about eligible payments and how Experian Boost works.

It's also good practice to periodically review your credit report for mistakes, which could affect your approval chances. If your report has incorrect information on it — like a missed payment that never happened or an inaccurate balance — these are things you'd want to get fixed before applying.

Check your eligibility 

Using a prequalification or preapproval tool can help you get a good idea of your approval chances. Neither of these methods guarantees approval, but they're strong indicators that you might qualify for the card. 

A full application generally involves a hard credit check, which may temporarily lower your credit score by a few points. Prequalification and preapproval use a soft credit check, which doesn't impact your score.

Before you officially apply, narrow your options down to one or two cards before putting in a formal application. Applying for too many credit cards in quick succession isn't good for a few reasons. Not only does it result in more hard credit checks, but multiple applications could signal to lenders that you're risky to lend to.

Choose a card that fits your current finances

If your main priority is getting access to more credit, you don't have to apply for a flashy rewards card. You might be drawn to cards with large statement credits or complimentary airport lounge access, but odds are you don't need all of that. Premium credit cards can be difficult to manage; if you don't use enough of a card's benefits, its value may not outweigh its annual fee.

If you have a limited or poor credit score, a secured credit card may be your best option. Secured cards require a security deposit — typically a few hundred dollars — to open, which acts as your line of credit.

The Discover it® Secured Cash Back Card is one of the best secured cards on the market, and you don't need a credit score to apply. You can open the card with a refundable deposit as low as $49, and you'll still have access to at least a $200 credit limit. The card also earns an excellent cash-back rate on rotating bonus categories, and at the end of your first year, Discover will match all of the cash back you've earned.

Discover it® Secured Cash Back

Learn More

.

Learn More

.

Credit scoreRegular APR

29.24% (Variable)

Annual fee

$0

Welcome bonus

INTRO OFFER: Unlimited Cashback Match for all new cardmembers. 

*Terms apply.

More details

Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.

• Refundable deposits as low as $49 unlock credit lines starting at $200.* No credit score required to apply.**
• INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum spending or maximum rewards.
• Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
• Smart habits, like making on-time payments, can help you build credit with responsible use***
• When you establish a positive track record, you'll earn your deposit back and upgrade to the Discover it Cash Back Credit Card.
• Redeem cash back for any amount. No annual or hidden fees
• With $0 Fraud Liability you're never responsible for unauthorized purchases on your Discover Card
• Terms and conditions apply
• * Deposit amount will be $49, $99, or $200 based on creditworthiness. Upon qualification, your security deposit will be returned and your account unsecured. All other card terms and features will remain the same.
• ** We may use credit scores if available.
• *** Many factors affect your credit, such as payment history and amount of credit extended and used. Using your credit responsibly may help you build good credit

There are also unsecured cards available for limited-to-fair credit. The Chase Freedom Rise® (see rates and fees) is one such option, earning 1.5% cash back on everything you buy for no annual fee. Plus, you can increase your approval chances if you have a Chase bank account with at least $250 in deposits.

Chase Freedom Rise®

CNBC Select Rating4.3Learn More

On Chase's site

CNBC Select Rating4.3Learn More

On Chase's site

Spotlight

Your approval odds are increased if you have at least $250 in a Chase checking or savings account.

Credit scoreRegular APR

18.49% - 27.99% Variable

Annual fee

$0

Welcome bonus

$25 statement credit

See rates and fees. Terms apply. Member FDIC.

Our expert take

The Chase Freedom Rise® is one of the most rewarding cards that's available if you're new to credit.

Pros & cons

• No credit history required
• Above average flat-rate rewards
• No annual fee

• Small welcome offer
• Has a foreign transaction fee

More details

Highlights

Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.

• Increase your approval chances - Having a Chase checking or savings account with a balance of at least $250 will increase your chances of getting approved for Chase Freedom Rise®
• Earn Cash Back - With Chase Freedom Rise®, you can establish credit while earning 1.5% cash back on all purchases. Cash Back rewards do not expire as long as your account is open and there is no minimum to redeem for cash back.
• Earn a $25 statement credit after signing up for automatic payments within the first three months of opening your account. With automatic payments, just pick a date and dollar amount to make sure your Credit Card gets paid on time.
• Credit Limit Increase - As a Freedom Rise® cardmember, you'll be evaluated for a credit line increase in as soon as 6 months. Your credit line is the maximum amount of money you can spend on your Freedom Rise® Card
• Free Credit Score - Track your credit score and learn how to build it with Chase Credit Journey.
• No Annual Fee - You won't have to pay an annual fee for all the great features that come with your Freedom Rise® Card.
• Member FDIC

Balance transfer fee

5% or $5 of each transfer, whichever is greater

Foreign transaction fee

3% of the amount of each transaction in U.S. dollars.

Pro tip: You can pair this card with a Chase bank accountChase Total Checking®Minimum balance to open

$0

Free ATM network

With over 4,700 branches, Chase has the largest branch network in the U.S. plus access to more than 15,000 ATMs.

LEARN MORE

JPMorgan Chase Bank, N.A. Member FDIC

Chase Secure Banking℠Minimum balance to open

$0

Free ATM network

Bank from anywhere with access to more than 15,000 Chase ATMs, more than 4,700 Chase branches, the Chase Mobile^® app and Chase.com.

LEARN MORE

JPMorgan Chase Bank, N.A. Member FDIC

Other credit card offers to consider

Consider the credit limit, timing and bonus requirements

If you find the right card and you're ready to apply, here are three additional things to consider:

Credit limit

While you might only have an estimate for your potential credit limit, that can still be enough to influence your decision. Issuers don't typically advertise average credit limits, but third-party sites like Reddit are full of cardholders sharing their approval stories and credit limits they've received.

Consider whether a card's estimated credit limit meets your needs. If the average credit limit of the card you're looking at is significantly lower than what you need, it might not be a good fit.

Approval timeline

Not all cards can be added to your digital wallet right away. Sometimes you need to receive the physical card in the mail in order to activate and use it. Consider this if you need to make the purchase sooner rather than later.

Some cards offer virtual card numbers as soon as you're approved. With this, you can add the card to your virtual wallet and start spending immediately.

Welcome bonus

Credit card welcome bonuses are often very valuable and can be a significant draw to sign up for a card. Take note of the spending requirements and timeframe you have to hit the bonus. Calculate how much you'd have to spend per month on average, and if you're not comfortable with that amount, that could be a sign to consider a different card.

Some cards, like the Discover it® Secured Cash Back, or its unsecured counterpart, the Discover it® Cash Back, offer automatic welcome bonuses. With either of these cards, Discover will match all the cash back you earn within the first year of card ownership — with no cap on the amount you can earn.

Discover it® Cash Back

Learn MoreLearn MoreCredit scoreRegular APR

18.74% - 28.74% (Variable)

Annual fee

$0

Welcome bonus

Earn Unlimited Cashback Match™ + $200

Terms apply.

More details

Highlights

Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.

• Get a 0% intro APR for 15 months on purchases and balance transfers; balance transfer fee applies. Then 18.74% - 28.74% Standard Variable Purchase APR applies, based on credit worthiness
• INTRO OFFER: Receive a $200 statement credit when you spend $500 on purchases in your first 3 months of account opening
• UNLIMITED CASHBACK MATCH: Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum spending or maximum rewards. You could turn $150 cash back into $300. Click "Apply Now" to view important rates and disclosures
• Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases
• Redeem cash back for any amount. No annual fee
• Terms and conditions apply

Balance Transaction Fee

3% for the first 15 months; 5% at a promotional APR that Capital One may offer to you at any other time

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Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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