How To Apply For A Credit Card? (A Beginner’s Guide)

How To Apply For A Credit Card

In today’s world, it has become necessary to have a credit card for various reasons. You can withdraw emergency cash from credit cards, pay your rents and bills, transfer cash to different accounts, etc. But to get all these facilities you need to be a credit cardholder. However, have you any idea on how to apply for a credit card?  

There are few necessary steps that you should take before applying for a credit card. And with that, some basic requirements are also needed to qualify and be eligible to use the credit card. In this article, I will provide you with an easy beginner’s guide on how to apply for a credit card.

So, if you want to acquire all the knowledge and information required to apply for a credit card in a very short period of time, just finish my entire article:

3 Simple Steps To Apply For A Credit Card:

Here are the 3 simple steps to apply for a credit card:

1. Compare The Rates And Pick The Best Deal:

Make sure to compare the interest rates, annual fees and other additional expenses before you choose your bank. A detailed research will help you to find the best available deals in the market provided by the issuer’s with less APRs, rewards, bonuses etc. 

After you decide to choose the right banking service with your preferred requirements and compatibility. Choose a convenient way to proceed your application.

2. Submit Your Application Online Or In-Person:

There are two ways to fill up the application form and proceed with your request. You can fill up your issuer’s form and apply online from your workplace or home. The other option is to personally visit your chosen organization and submit your application with the necessary documents.

I have already discussed the personal information needed to complete your application form. Provide the exact details of your name, address, income statement and social security numbers.

3. Provide Legitimate Documents For Quick Approval:

It is very essential to provide legitimate documents to assure them the security that an individual is capable of repaying the loan. There are different procedures to submit your documents and it is recommended completing your application process in-person to avoid unnecessary trouble.

The issuer will verify the information provided in the application form with your supporting documents for your approval. It is also more likely for an applicant to get approval from the issuer’s if they provide additional documents like employee history, current salaries and show statements of other bank accounts.

Make sure to clear all your previous debts( if any) for a better chance of approval. It is recommended not applying into multiple banks at the same period and clear other applications too. The documents provided will be sent to an external agency such as Equifax or TransUnion after verifying your past credit score and transaction history.

After the verification, you will be notified through an-email, text message to collect your card from the issuers. 

5 Major Requirements Needed To Apply For A Credit Card:

It is very important to prepare all the necessary documents and fulfill every requirement by the issuer before you proceed with the application. If you have the basic requirements, you can easily apply for a card.

Here are the 5 major requirements that you must need to be eligible to apply for a credit card:

1. Age Requirements:

This is the very first requirement needed to even qualify for the credit card. Your age must be 18 years and above to fulfill the issuer’s requirement. Although you need to have your parent’s authorization to be able to use the card. 

If you are 21 and above, a valid source of income with a recent bank statement is needed by the issuers.

2. Social Security Numbers:

The issuer or bank requires an individual’s social security number to issue the credit card. It is highly recommended providing all your social security numbers in the application for a better chance of approval. 

Always remember the more accurate information you will provide along with the necessary requirements, it is more likely your application will get accepted by the issuer. For example, ‘Individual Taxpayer Identification Number (ITIN)’ is one of the most used social security numbers for a higher chance of approval.

It is also required to provide the accurate residence address along with the phone numbers as a security number. U.S citizens should verify their national identification number as most of the issuers or banks do not allow credit cards to temporary residents. 

3. Valid Income Source:

A must requirement required by the financial organization’s and issuers to approve your credit cards. An individual must prove and show his valid income sources that he can pay the loan, debts, interest rates in the given time. 

Failing to show the income statements will disqualify you from availing the service.The banks and financial organizations in the US would allow and issue credit cards to everyone before the year 2009. 

People with zero bank balances and income sources were allowed to use the service. US law imposed a strict CARD 2009 act to prevent the youths from falling into huge debts.

You must provide your yearly income statement, minus the taxes and other sources of income(if any) to the issuers. 

4. Good Credit Score:

Some of the issuer’s require a good credit score and past repayment history to accept your application. The credit score required may vary according to the issuer’s. The basic score needed to be eligible is 700+ and some of the issuer considers a lower score.

If you are a complete beginner with zero credit score and history, you must apply for secured credit cards with a minimum deposit requirements of $250 dollars and a maximum of $1000 dollars.

A person with a very poor repayment history and poor credit score needs to pay a lot of additional fees and interest rates to avail the service. Compare the interest rates before you apply, otherwise you will fall into huge debts.

5. Valid Residence or Business Address:

You need to provide the issuer a legitimate address where you live or the place you work if you are applying for the very first time. An existing credit card holder can show their recent payments of bills and house rents for higher chances of approval.

The U.S. patriot act 2001 was introduced by the federal law and was made mandatory for the issuer’s to collect all the information including the present and previous address. It is also necessary for the issuer to know where you work or live, so that they provide the monthly updates of your transaction and current account balance. 

Once you fulfill all the above requirements, you are eligible to apply for a credit card. 

Conclusion:

Anyway, follow the procedures thoroughly to make sure your credit card application is accepted by the issuer. And you already know the right procedures of how to apply for a credit card.

Credit cards will make your life easier, only if you can maintain the monthly payments and clear your dues in the given time. So, be respectful of the terms and conditions of your credit card issuer.


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