HOW TO APPLY FOR CREDIT CARDS
Going around shops to buy and counting cash while paying for the products bought is something none of us is fond of doing. This is why using of credit cards, and debit cards are so popular all around the globe. This is simply because convenience is what we need to sort our already packed up life.
But most of the people especially the beginners in the field of finance and banking do not understand the basic difference between a credit and a debit card.
In a credit card one does not spend money from their savings; instead, they borrow money from the bank to pay for their purchases, and in return, they fill up that borrowed sum along with the interests charged by the bank. Whereas in a debit card one uses it to pay for things or take out money from ATMs from a bank account which is linked with the card. So here they are spending their own savings.
A debit card is easily accessible on the other hand credit card is not an easy thing to acquire. For a credit card you need to do a lot of paperwork and also need to fulfill all the eligibilities.
Here are the basic steps on how one can easily apply for a credit card:
- Scrutinize the credit score- a credit score can be described as a numerical value that depicts the investor’s worthiness and how efficiently and early they have paid for their repayment of debts. So before a person applies for acquiring a credit card they need to check their credit score. If the credit score is not convincing enough the credit card will never be granted. The bank needs surety by seeing your credit score that the money you take by using the credit card you will be able to repay along with interests on time or not. And that is exactly why one needs to make their credit score as strong as they can.
- Check the credit report- a credit report and a credit score is nothing different. A credit report displays a person’s number of investments and repayments of debts along with the time duration of the repayment. The bank will mainly go through the time duration and see how long it is taken to pay to estimate the worth of the card seeker.
- Choose the card type suiting the purpose- different banks have different plans on credit cards, some might possess high-interest value with flexible money procuring facilities whereas some might have lower interest rates, but the money withdrawing limit is also restricted. There are credit cards based on certain brands which give the user multiple discounts while shopping using the credit card from there, all in all, there are a lot of options to choose from. It is advisable for beginners to choose a card with lesser interest value or retain a credit card to understand and experience the whole process before opting for a permanent card. Retail credit cards are though not very light on pockets, being temporary using it comes with high-interest rates often, so one needs to plan efficiently before choosing a credit card.
- Choose from where to get the card- it is generally a good option to get a credit card from the financial institution where one already has an account registered. This will help in eliminating a lot of intermediate steps involved in getting the card and also the submission of documents might consist of a little less number of papers because they already have most of the information about the person asking for the card. Judging by the interest rates and money procuring flexibilities one can also choose banks to ask for granting credit cards.
- Verify if you are already pre-qualified- sometimes going through the list of requirements one sees that they are already qualified or have fulfilled certain criterions. This saves up a lot of time and effort.
- Submit your documents to get the credit card- this being the final step, one needs to be extremely careful. A proper application needs to be written in order to convince the financial institution to grant the credit card, followed by submission of documents including portfolio, credit report and credit score along with other general information about the person like identity details and all. After submitting all of it, all that is needed is patience and wait.
Wait until the bank or the financial institution grant the permission and make good use of the card once you finally get it.