People need an instrument to pay in a safer way compared to cash and financial institutions has created the cards which allows people to have access to their money without having to carry the cash. But there are different types of cards (credit cards, debit cards and prepaid cards) each one of those is designed for different purposes.
Nowadays you are able to apply for one of them online so you just need to prepare the documentation without having to visit the bank office. In this article we are going to talk about the application for those cards online. But first let`s talk about each one.
What are credit, debit and prepaid cards?
A credit card is an instrument that is used to borrow money from a financial institution (the card issuer) and pay it later. Those cards have an interest rate which determines the amount that the cardholder will have to pay in interests over the balance of the card.
They are helpful for people with a thigh budget because they are able to have instant credit but they should use them carefully because they may not be able to pay it. Credit cards has different fees like an annual fee to keep the card activated, a foreign transaction fee when you use the card outside of your country, a late payment fee when you don`t pay your balance on time and other fees. There are credit cards for all people, even if you have no credit history or a bad credit score but in that case you will have to pay a higher rate
Debit cards are a payment method that allows the cardholders to use the money in their accounts to pay when they want to buy something. They are useful because you will not need to carry cash and they are a secure payment method (some cards need a password or PIN and some don`t).
You can use the debit card to withdraw money in an ATM and there could be a low fee for it but some debit cards don`t have fees for that. You will be able to check all the transactions with the card in the account balance so you will be able to control your finances. If you want a debit card you just need a bank account and the money to use it because your credit history or credit score don`t affect that
A prepaid card is a card issued by a financial institution and it is secured with a payment that the cardholder makes before using it. They useful to build a credit history when you don`t have any or to improve a poor credit history or credit score.
Having those bad records makes difficult to get a credit card so you could improve your credit score first using a prepaid card. Those cards are useful to buy things online but most debit and credit cards can do the same. Now, let`s see how to apply for one of them online
Applying for a credit, debit or prepaid card online
If you want to apply for one of these cards you should collect all the information before doing the application. You can check the requirement in the website of the card provider. In most cases they will ask for your personal information which includes full name, social security number (if you are not an US citizen you could provide other identification), address and previous address, phone number, an active email account.
They may ask for information about your employer (address, phone number and any other contact information) because they may want to see what you do and how much money you earn. Buy if you work by yourself (you are independent) they may want to know how are you making the money for KYC (Know Your Client) purposes.
Card issuers may ask for more information especially when you are asking for a credit card because they are lending money to you and they want to know if you are capable of paying. So, they will check your credit history and credit score to check if you are eligible for the card.
But, if you are looking to get a debit card or a prepaid card they may not ask for much information because you just need the product to use your money. They may need to check to origin of the funds to let you use the product.
For some people applying online for one of those cards may seem unsafe but there is nothing to worry about because card providers use secure platforms to protect the personal information of their customers. And it is also an easy process because the platform is designed to be intuitive so most people will be able to use it.
You just need the information and you can attach a scanned file if you need to. Once you have submit your application you will have to wait for the result; some cards providers let you know the answer faster than other but the process may take up to one week. If you get the card then once you activated you will be able to use it. But if you don`t get the approval then you could wait a apply once again for the same card of for another one
In summary, applying for a credit, debit or prepaid card online is easy and secure. If you want to do it you can find all the specific requirements for each card online in the website of the card provider. Keep in mind that you should apply for a card according to your credit score and credit history. If you want a good credit card you should build a good credit history first. But there are different options in the market so every customer should be able to find the right one.