Application for credit cards
Getting a credit card used to be a time-consuming business. You'd have to ring or go into your bank, fill out a lengthy form and wait for quite a while before you got a reply. Although many people are still using that method, there's now a quicker way, thanks to the Internet.
Most card issuers now offer online application for their credit cards. Finding one is as simple as doing an Internet search or visiting that company's website. In addition, there are several credit card comparison sites that allow users to select cards that match a range of features and then apply. Credit card applicants are required to be UK residents and over 18.
Many of online credit card applications now have a summary box which gives details of the rates that apply to purchases, balance transfers and cash advances, the interest free period, fees and charges, how interest is charged and how payments are allocated. There is also a link to the detailed terms and conditions. Once you've read these, it's time to fill in the application form. Here is the information which most credit card applications ask for.
To start with, you will need to give your name. This is generally your full name - no hiding that unwanted moniker from the credit card companies. They will also ask about marital status and your date of birth. Credit card companies also ask for your mother's maiden name for security purposes. Applications are only taken from the principal cardholder. Which means that you cant apply for a credit card on someone elses behalf Anyhow, you can add an additional cardholder at the time of application or later.
You will also need details of your address and postcode. If you have lived at this address for less than three years then you will also need to give your previous address and postcode. In essence, you need to show a three year history of where you have lived. Other contact details required include a phone number and an email address.
Most companies want to know whether you own or rent your home and some may ask about the size of your mortgage payment. They will also want to know your occupation and employment status. Ideally credit card applicants should be working more than 16 hours a week.
They will also need annual income and bank details, including how long you've been with the bank. At last, you'll have to list the types of credit cards you already have (Visa, MasterCard, and Amex, store cards and so on).
All of these help credit card companies establish what level of credit risk you are and what credit rating you have.
Most of the online applications forms offer you the chance to take up additional services such as payment protection insurance, travel insurance, household insurance and much more.
You will also need to have details of any cards that need to be transferred to your new credit card.
Once you've completed all these details, you simply need to wait a short while for a response. Some card issuers respond within a minute. It's worth knowing that there will be some cases where they will ask for additional information before issuing a credit card.
Narrowing down what you need the credit card for, will help you to determine the best card for your lifestyle.
First of all, are you going to school Are you a college student College students will do best with a college student card. Contact your original bank where you have established your student account. Any other bank may not be as willing to accept your application and to issue you their card.
Will you be transferring a balance to you new card
If so, look for a credit card with a low APR (Annual Percentage Rate) on balance transfers. It is best to shop around for a credit card that's APR stays low for as many months as possible, unless it's your intention to switch again in a few months.
Is it your wish to make new purchases with your new credit card If this is your intention, pay closer attention to the annual percentage rate [APR] that applies to your purchases. In most cases, this APR is different to the APR for balance transfers.
Another area to be aware of is whether the card you are choosing has an interest free grace period. You don't want to start paying interest on your purchases right away when you can get credit cards that offer interest free grace periods all the way up to 55 days.
Are you able to pay your credit card balance in full every month
If your card is only kept for emergency purposes and you don't use it for anything else, you may be able to pay it in full every time your statement arrives.
If that's the case, you're probably in the position where you don't need to worry too much about the interest rates on your card. (Be sure to look for a card that gives you a comfortable grace period though).
Many people are not aware that the Credit Card companies still make revenue even when you don't pay any interest. Card companies will offer rewards or a little piece of the "pie" back to you for allowing them to make that money, even though you are paying the entire monthly amount back.
Most offer one of three choices:
Rebates - a percentage of your money sent back to you. If you are a big spender with your credit card, you can see this rebate amount add up to a nice sum of money quite quickly.
Get cash back. For always paying everything off, they're quite willing to throw a few dollars your way. Once again, if you are a big spender, this can add up to a tidy sum.
You can gain points for dollars spent, that can be redeemed for airfare, hotels, appliances, or other items.
You can opt to use a credit card that allows you to put a percentage of every one of your transactions towards a charity or cause you support. Over time, even a small percentage can add up to a very worthy donation for that charity or cause.
Finally, review as many cards as you can, and take the time to do it thoroughly You don't have to feel pressured by the credit card company phone calls that invade your home and telephone. The best way to find out about the multitude of card options available to you is to go online to the Internet and visit a review, or resource directory. There you will find a very well rounded selection of credit cards to review and choose from.
Stay clear of offers that state they are valid for just a limited time. Those are just sales tactics to force you into hasty decisions.
Calculate your strategy. What do you want to use your credit card for What are the spending habits you have developed while using prior credit cards Take all of that into consideration, as well as all the card options available to you... then, when you're informed, go get your credit card!
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