The short answer – It doesn’t hurt but probably won’t increase your chances.
Most credit card firms offer cardholders bonuses in the form of additional points or cash back for each referral they provide. I’ve referred multiple people, including my fiancé, for the Chase Sapphire Preferred and they’ve all gotten approved. It’s important to note that both of them had decent credit scores but not fantastic.
Getting approved for a credit card depends on multiple factors.
Credit Score – The main factor companies will look at. If it’s low, your chances aren’t good. A referral can’t hurt you though!
Card Utilization – The amount of credit you current have can impact an approval. For example, if your current cards are maxed out you’re a high risk.
Recent Hard Inquiries – If you’ve applied for multiple cards in a short amount of time, it suggest you either didn’t get approved for a card or you got it and it wasn’t enough.
Credit Age – Credit card firms look at your credit history. If you’ve have cards open for a long time and remain in good standing, this can only help you!
Delinquencies – Missing payments are not the end of the world. If you’re consistently missing payments, getting more credit will be a challenge. Don’t miss those payments, people!
Do you have a mortgage? – Owning a home will help you. I recently purchased a home and my credit score jumped almost 100 points instantly! Having a mortgage suggests you’re credit is solid and you’ve had a good credit history. Otherwise, you wouldn’t have a mortgage.
In short, a referral cant hurt but it probably won’t be a determining factor. The overall health of your credit will be the main factor so be sure you check your credit consistently and don’t miss payments!
If you’d like a referral, email me and I’ll happily provide you one.
Also, think twice before canceling a credit card. If the card has been open for years, you’re better off keeping it open and putting the occasional charge on it.