Applying for a Credit Card is Extremely Easy, Here’s How
So you want to apply for a credit card and you want to know how. Having a credit card is useful for various reasons. Cards are more secure to use than money or debit cards, and they’re perhaps the most straightforward method for building credit.
Most of the time, the best cards come with many benefits like the opportunity to earn compensation when used for a particular purchase, for example, supermarket or travel buys.
However, there is an application form to fill out with requirements to fulfill for eligibility for a credit card. A good credit rating is necessary, especially when shopping for a credit card with lower charges and no initial deposits.
What are the requirements?
When submitting your application for a credit card, there are requirements as laid down by the Credit CARD Act of 2009 to be fulfilled and details to be submitted alongside your application.
The details you should provide with your application will differ from one bank to another.
Be that as it may, below are the essential details that are required to be submitted with your completed application form:
· Passport Photography
· Copy of Most Recent Pay slip
· Copy of Proof of Identity
· Copy of Proof of Address (e.g., Utility bill or driver’s license)
· Copy of Bank Statement
· Contact details
· Employment Details
· Full Names
· Form 16
· Pay confirmation
· Proof of business
In addition to the above details, some credit card issuers sometimes require that the credit card applicant must be a U.S citizen or with a valid resident permit.
The Acts also stipulates that any Credit Card should not be under 21 years of age or 18 years with proof of income.
Determine what type of card you need
There are various types of credit cards out there. A major method you need to use to know how to pick the right card is understanding how credit cards work and which kind of credit is the right fit for you.
What type of credit you need will largely determine by the purpose for which you need the credit card.
The typical home-keeper who needs to shop frequently for the house will require a different kind of card than an average undergraduate who’s just building a credit score.
Research Credit Card Terms
Researching credit card terms and conditions will help you discover the fees and interest charges you could incur as a cardholder.
This exercise will also give them a credit card’s yearly rate (APR) for purchases, the APR for a balance transfer, the APR for loans, and the APR for the penalty.
It likewise states how long the grace period is and the base interest charges if you convey an equilibrium.
Moreover, it will incorporate the yearly expense and the charges for a balance transfer, loans, foreign exchanges, late payments, and brought back payments.
Here are a few credit terms you should familiarize yourself with before applying for credit.
· Credit bureau
· Billing cycle
· Credit limit
· Annual Fee
· Credit score
· Grace period
· Minimum payment
· Annual Percentage Rate
Please make sure you go through the terms and conditions cautiously before applying, and again after getting the new card, ensure you completely check any fees and interest charges associated with your card.
Know Your Credit Score
One of the most important steps in applying for a credit card is to know your Credit score.
A credit score rating is a three-digit number determined to decide the general nature of a customer’s financial record and history.
You can check your FICO rating through credit card issuers or by requesting it from any of the three primary credit bureaus: Bank of America, TransUnion, American Express, Equifax, or Experian.
You are qualified for no less than one free credit score rating from every organization annually.
Your credit score rating is impacted by your installment payment history and credit line history.
Every department utilizes a marginally unique model, so anticipate those slight distinctions in score from a different agency.
If your score is essentially not the same as what you naturally suspect it ought to be, survey your credit report cautiously. Search for mistakes or delinquent installments that may be hauling down your score.
Choose the Credit Card You Need
There is a wide range of credit cards out there for you to choose from. However, the first step is knowing the type of credit card right for you and how to get it.
Features of Credit Card
- Credit Repair Cards assist you with further developing your credit when it’s restricted or damaged. This card helps you build your credit history but will come with higher interest.
- 0% Interest Cards: – this type of card allows you to enjoy 0 % interest on your credit balance when you transfer your balance from one card to another.
- Reward Credit Cards: – This card gives you cash back or a bonus when you shop or pay bills.
The best card for you is the one that ‘s designed with attributes intended to meet your particular requirements.
If you don’t travel often, for instance, the best travel card on the planet won’t significantly benefit you.
Find Out If You’re Pre-Qualified
The easiest way to check whether you’re pre-qualified for a Credit card is to check a credit card organization’s site for their requirement.
Some card issuers let you see which of their cards you’re pre-qualified for by just entering your name, address, and the last four digits of your Social Security number into a web-based form.
You will be replied with a series of results depending on your input, credit card eligibility, and the likelihood of being qualified for the card.
During pre-qualification, the card issuer investigates your credit and lets you know whether you will probably be supported, yet this is supposed to be soft. Make sure that doesn’t influence your score. When you apply for a card credit bureau does the run that can knock off your score.
Complete an Application
Applying for credit cards can be as simple as going to the card issuer’s organization’s website and finishing the application.
While many credit card issuers can approve your application within a few hours, some might take days to process your application, depending on your situation.
When filling out the application for a credit card, keep in mind that the credit lender company will review your application with the personal information submitted alongside the application form.
Note that incomplete form or supplying wrong information could lead to delay or outright rejection of your application.
Conclusion
Applying for a credit card is easy but could be complicated if not handled properly.
Many things could go wrong when applying for a credit card, from ineligibility, to bad credit, and incomplete information.
Be that as it may, you can prevent the pressure of applying for a credit card by checking your credit score and applying for the card that aligns with your credit score.
Check your eligibility in advance to know whether you meet the prerequisites for your ideal card and apply accordingly
If you don’t meet its prerequisites, investigate the card you do meet the requirement for and apply for the one that best fits your purpose and credit scores.
