Why Your Credit Score Affects Your Odds of Credit Card Approval (and How to Improve Both)

Two similar people might apply for the same credit card and walk away with very different results. One gets an instant approval and a high credit limit; the other is offered a smaller limit, a higher interest rate or a flat-out denial.

That difference usually isn’t random. It comes down to how lenders interpret the information in each person’s credit profile — especially their credit score and credit report.

Card issuers don’t know you personally, so they rely on data — especially your credit score and credit history — to decide how risky you look as a borrower.

“Banks or financial institutions, when they’re looking to lend us money, they don’t know us like a friend or a family member,” says Amanda Martin, former partnership and education specialist with the Credit Counselling Society in Hamilton, Ontario. “They need to be able to rely on something to give them some insights as to whether or not you’re a trustworthy and responsible person they should lend money to — and that’s where our credit report comes in.”

This is also why two people applying for the same card can walk away with different results: their credit reports tell slightly different stories about risk, even if their scores look similar at a glance.

There’s no single minimum credit score that guarantees approval, and issuers rarely share the exact score they require for each card.

If your score is lower than 660, you may still qualify for a few entry-level unsecured cards — sometimes even with scores below 560, depending on the issuer — but these offers often come with higher fees, higher interest rates and fewer perks.

Secured credit cards rely on security deposits instead of credit checks to determine creditworthiness, so your score is less likely to be a factor in eligibility. However, secured cards typically come with lower credit limits and minimal rewards. Plus, you only get the deposit back when the account is closed.

In contrast, stronger scores make it more likely you’ll be approved for top-tier cards with richer rewards, better benefits and stronger welcome bonuses. Your score helps determine not just whether you’re approved, but also which version of an offer you see — including your starting credit limit and interest rate.

Both Equifax Canada and TransUnion Canada have their own credit score ranges, which fall roughly into these bands:

Your options and terms change as your score moves. In the poor or fair bands, you’re more likely to see secured or basic cards. Once you’re in the good, very good or excellent ranges, you’ll typically have access to more cards — and more competitive offers — from the very same issuers.

That’s a big reason two applicants who look similar in other ways can still get different responses to the same card: the person in the stronger band usually looks less risky, and gets the more generous version of the offer.

Using the Equifax Canada credit score ranges, here’s how your score can affect the types of credit card offers you see.

When you apply for a credit card, the issuer is really making two decisions: first, whether you’re eligible for the card at all, and second, what specific terms to offer you, including your credit limit and interest rate.

Your credit score and credit report are at the centre of both decisions, which is why two people applying for the same card can end up with very different outcomes.

Step 1: Your credit score and basic eligibility

Your score condenses a lot of information from your credit report — like how reliably you’ve paid bills and how much of your available credit you’re using — into a single number. Lenders see higher scores as responsible money management, while lower scores might make them question your ability to repay debt. Issuers often set internal score ranges or minimums for each card. That’s why you might be declined for one card even with a “good” score, but easily approved for a different card from the same bank.

On top of your score, you also have to clear some basic requirements around age, residency and income. If you don’t meet them, you may be declined even with a strong score.

Step 2: Your full credit profile

If your score and basics look good, the issuer then looks past the number at your full credit report to evaluate things like:

Errors on your credit report can also hurt your chances of approval, since lenders may treat incorrect information as if it were accurate. It’s worth checking your reports regularly and disputing anything that looks wrong or outdated.

Step 3: Your capacity to handle more debt

Finally, the issuer considers how much additional debt you can realistically handle. This is where your credit limit, terms, rates and promotions often get dialed up or down — and when two people with similar scores can start to look very different.

Lenders may look at:

All of this helps the issuer gauge how confident they feel about lending to you — and therefore how “hard” they’re willing to compete for your business.

For example, imagine two people who both have fair credit scores. One has a long credit history of making timely payments but earns a relatively low income through part-time or gig work. The other has a thinner file and a few late payments, but a stable, high-paying job. In some cases, both applicants might still be approved for the same card, but the one who looks more stable overall could receive a higher credit limit or better rate.

In practice, this is where two people with similar scores can both be approved for the same card but walk away with very different credit limits and terms.

If you don’t qualify for the card or terms you want — or you simply prefer not to use a credit card right now — there are other ways to build a credit history and move into a stronger offer bracket over time. This can be especially helpful if you’ve just been denied a card or received a much smaller limit than you expected.

As your profile improves, you can revisit credit card options — starting with products aimed at builders or newcomers and working up to more feature-rich cards.

» MORE: How to get a better credit score

The way you use a credit card is a window into your financial responsibility. Over time, as you make purchases with your card and pay (or don’t pay) your balance, this activity is reported to the credit bureaus and shows lenders and others your ability to handle credit — which can lead to very different offers on the same card over time.

Choose the right card for where you are now

Part of using a credit card to build credit is making sure your spending needs and your card are a practical match. Common options include:

Follow best practices when building credit with a card

The best way to show you’re a responsible borrower (and bolster your credit score) is to use your credit card regularly and pay off your full balance by the due date each month.

Making only minimum payments when you can afford more won’t usually lead to immediate damage, but it can keep your balances — and therefore your credit utilization — higher than they need to be. Aim to use less than 30% of your available credit to keep your credit utilization ratio low.

It also helps to be selective about new applications. Applying for several loans or credit cards in a short period of time can send warning signs to lenders that your credit needs may be problematic and can temporarily drag down your score. Only apply for new credit when you have a clear need and you meet the card’s eligibility requirements.

As Martin explains, you also don’t have to go into debt to show responsible credit card use — even making small purchases with a low-limit credit card each month can have a positive impact on your credit score, as long as you pay the bill in full when it comes in.

Track your progress

You can check your credit report and credit score through:

Positive factors like on-time payments and lower balances usually help your score over months, not days, while major negative marks can take years to fade. That’s why steadily improving your habits now can lead to better card offers down the road.