Credit Card Application

James J. Robinson asked:




Getting answers to your credit card application questions is an important part of the process of obtaining a line of credit that meets your needs, and does not have to cost you an arm and a leg! By finding out the details in advance, you are in a better position to make the best choice for your needs. It may help if you think of yourself as a credit card detective as you go through the application process.

Question: Is there an annual fee?

One of the credit card application questions you need to get answered is whether the card you are considering requires that you pay an annual fee. You will need to pay this amount whether you are using the account or not. Not all consumers feel that paying a fee to keep an account open is a good deal.

Question: What is the APR?

The APR, or Annual Percentage Rate, is the rate of interest that you are charged for purchases and cash advances made against your card. Some cards will offer a low APR (some are even available at zero percent) for the first few months. After the promotional period has passed, the credit card account reverts to the company’s “normal” interest rate, which may be several percentage points higher than what the customer has been paying.

Question: Will they ask about my bank accounts?

Since the lender is taking a risk that you will be able to pay back and credit you use, yes, you should expect to give evidence of things like how much money you make, how much cash you have access to, and how much debt you carry.

Question: Will they ask about my FICO score?

Your FICO or credit score is important, but the lender won’t ask you to provide this info. They can obtain it directly from on of the three credit rating services.

Pauline

Morgan Hamilton asked:




Getting a Master Card can be exciting. But before you even fill out the credit application, there are a few things you should know about the card you are applying for. The interest rate, grace period, fees and cash advance polices are all important terms that should determine whether you apply for the card or throw the application in the shredder. This purpose of this article is to discuss the various terms that you should understand before filling out a Master Card credit application.

Annual Percentage Rate (APR)

The APR, or annual percentage rate, is the rate the credit card companies use to calculate your finance charges for the month. The higher this rate is, the more interest you will have to pay on your charges. If you are one of the few who actually pay off their credit card balances every month, you do not need to be concerned with APR. If, on the other hand, you are like most of us and carry a balance from month to month, you want to find a Master Card with the lowest APR possible.

Grace Period

Next to the APR, the grace period is the most important term you need to understand before filling out your Master Card credit application. The grace period refers to when a company can begin charging interest on the charge you make. Most cards have a twenty-five day grace period. If you pay off your balance before twenty-five days, you don’t have to pay any interest. Avoid cards that do not have a grace period because they will charge you interest from the moment you purchase something with the card.

Cash Advances

Credit cards usually allow you to take out cash advances. This is money that you get from the ATM and is counted against your credit limit. Credit card companies normally charge a higher interest for cash advances on top of charging a transaction fee. While you shouldn’t take out cash advances anyway, it’s important to understand these terms before applying for a credit card

Additional Fees

Other fees, including late fees, over-the-limit fees and annual fees should be investigated before applying for a Master Card. Late fees and over-the-limit fees can be avoided by paying your bill on time and not charging more than you pay each month. Never get a card with an annual fee, it’s like paying for the privilege of using credit.

Eugene

Mario Churchill asked:


Getting a credit card application before was a bit difficult. You would have to call a bank, go there in person, and fill up very lengthy application forms. After submitting the forms, you would have to wait for the reply.

That was the traditional way, but many people are still going through that process every time they apply for a credit card. But what if you’re a busy person who can’t take the time off away from work to make an application? That is no longer a problem nowadays because of the internet.

A much quicker way is to secure an application online. However, there are those who are unsure, and are reluctant to make an application using that modern method because of security issues. There is no need to worry because credit card applications made online is just as safe as that made in a bank.

Most of today’s banks which issues credit card applications have their very own websites. All you have to do is to make a little research on the net and find the different websites of credit card issuers.

You have to be a qualified applicant, which means that you should not possess any of the disqualifications set by the bank. There are also independent sites which offer credit card comparisons to help you in choosing the best credit card to suit your lifestyle.

Once you visit a particular site and decide to make an application, you will usually find summary boxes which contain specific details regarding the different rates, charges, fees, cash advances, balance transfers, and other important facts. Most sites have links to their conditions, terms, and company information. This makes it a lot easier and quicker to make an application online.

In securing an application online, you would have to provide the following information:

1. Your name and address

You need to provide the company with your full name, birth date and marital status. The maiden name of your mother is often asked for certain security purposes. Your address and postal code is also needed. Contact details such as an email address and telephone number are asked.

2. Employment records and home ownership

Your employment status and occupation is important to a bank, and for you to qualify for a credit card application, you should be working for 16 or more hours every week.

Credit card issuers are interested to know if you own a house or if you’re renting one. Other information that they would often ask are mortgage payments, annual income, and what specific credit cards you have at present. This is needed to check your credit history for them to determine the risk involved just in case they approve your application.

3. Other services

Online credit card applications also offer their prospective clients additional services like household, travel insurance, protection insurance, and many more.

In case you’re making a balance transfer, you would need to provide details about your previous credit card.

Once you are finished in filling up the application form online, it would only take a couple of seconds to wait for the response. In most cases, additional information is asked before you are actually given a credit card.

You have to undergo this process before the bank issues a card. Although it requires a little amount of your time, for the bank it is a big deal already because they don’t want to be at great risk upon issuing a credit card.



EDWIN