How to Apply for a Credit Card

How to Apply for a Credit Card

How to Apply for a Credit Card

(Last Updated On: July 24, 2017)

Carrying too much cash can be an inconvenience to many.  It’s cumbersome and in a lot of ways, not the safest way to carry money around.  Though owning one is a huge responsibility, having a credit card has its own advantages which is why it comes handy for one to know how to apply for a credit card and be eligible enough to ensure approval.

 

Requirements

Applying for a credit card is as easy as it gets with everything being done online nowadays, all you need to do is visit your preferred bank’s website and fill up an application form.  The difficult part is getting approved for one which is why it’s important to have all the requirements met and ready before going online.

 

Social Security Number

Would you lend a friend money if you knew beforehand that he doesn’t have a job or any source of income to pay for it?  Banks treat each applicant the same way too.

A Social Security Number (SSN) is one of the major requirements banks look for because it’s indicative of your eligibility to work and receive social security benefits.

If you want to increase your chances of getting approved for a credit card, you need to apply for a social security number if you do not have one yet.

 

Credit Score

Think of this as something similar to your reputation.  Would you lend someone money if he or she has a history of not paying debt on time or not paying at all?  Credit score is one of the most important factor that determines whether your application will be approved or not.  

Below is the typical classification of scores followed by lenders:

Bad Credit – 300 to 629

Average Credit – 630 to 689

Good Credit – 690 to 719

Excellent Credit – 720 and above

Credit card companies usually require good or excellent credit.  If you don’t fall in any of these categories because of a bad credit history, it may be wise to temporarily put your application on hold until your finances gets better and you can do that by paying on time, keeping a low balance on existing credit cards and not incurring additional debt.

 

Income

While social security numbers and credit scores make you look good to credit card companies and further strengthens your eligibility, there’s one more important aspect that lenders are looking for and that is your ability to make payments.  How do they determine that?

Through your income which is why it is vital for you to include all your sources of income in your application.  If you’re earning money from side businesses or anything outside of your fulltime job, include those.  Just resist the temptation of falsifying this information by overstating your income or you’ll run the risk of being sued for credit card fraud.

 

Final Reminders

Once you have all the requirements ready, you can now apply for a credit card by going online through your bank’s website.  Below are a few reminders to take note of though, before you proceed:

  • Don’t apply to multiple credit cards simultaneously.  Multiple rejections can hurt your chances of being approved.  One or two applications will do.
  • Apply only on secured sites.  Remember that you are providing personal information and that applying on non-secured sites makes you susceptible to identity theft
  • Only provide accurate information during the application process.  Don’t let your eagerness affect your chances of getting approved.

 

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