How to Apply for a Credit Card

People needs some instruments to get help in their financial situation even if it is not a difficult situation, having alternatives and instruments to use the funds it`s always a good thing but, that people have to fulfill with some requirements in order to access those instruments like a credit card. Credit cards are one way to get an instant credit from a bank or a financial institution and pay it later (can be month by month for example) which can be useful if case of an unexpected expense. In this article we are going to talk about how to get approved in the credit card application

What information will be requested and what are the eligibility requirements to apply for a credit card?

If you want to apply for a credit card they are going to ask for personal information like: date of birth and full name; citizenship (to know if you are citizen of the US or not); a Social Security Number that is going to be requested by most banks but you can also provide a ITIN (Individual Taxpayer Identification Number) which can be obtained even if you are not citizen of the US.

They are also going to request a residential address, the time you have been living in that place and a previous residential address (if you have one) as well as contact details such as a phone number and email address.

They will also ask for the employment and income information including your occupation (tittle, working hours and so); employer information (how long have you been working with your employer); income (before taxes) and if you are self-employed you should present income tax from other years so they can check your income.

Other information that they are going to request is the financial one which includes account details, assets (properties, investments and savings), monthly obligations including housing, car payments, others credit cards and others.

But, before giving all that information you should fulfil the eligibility requirements which are: be 21 years old but if you are at least 18 and you have an authorization from your parent or even a verifiable source of income you can apply to a credit card in the US; residency status is other requirement because most of the credit cards in the US require you to be a citizen of the US or a permanent resident but there are some credit cards for temporary residents that have valid visas.

A good credit history is also required to apply for a credit card and get the approval; having an income will also be helpful but there are credit cards for those without income. If you fulfil with this requirements you have good chances to get the credit card but there are other things to be considered

Considerations before applying for a credit card and get approved

The first thing to consider is the type of the credit card that you need, it is important to see things as habits or things that you do frequently, for example, if your work makes you travel a lot you should consider a credit card that allows you to collect miles or points with the travels.

If you think that you spend too much buying things maybe you should get a prepaid card to start using a real credit card that involves a debt but, a secured credit card could be other option and can be useful as well if you are starting to use credit cards and you don’t want to get a bad credit history.

The second thing that you have to consider before applying to a credit is understand the credit situation that you have, that can be made with a paid service but some banks let you know your credit situation with a FICO score.

But, why is that number important? Well, most of the credit cards services are looking for people with a certain credit score so if you don`t have the score you may not have the credit card. The idea is to apply for a credit card that requires a credit score similar to yours that will bring more possibility to get approved.

The third thing to have in mind is the order of your finances because that will improve your credit score but it is also good to have the finances in order to avoid tight situations with money. But, how can you have your finances in order?

It is not difficult, you should pay your obligations before the date, have low debts (in fact, paying more for the debts before applying for a credit cards will be great), have enough income to pay all the expenses and check the credit report to look for errors that may affect you in a bad way.

Once you have all this in order, you will be able to apply for a credit card and have good chances to get approved, all the documentation should be delivered to the bank or financial institution who is going to provide the credit card.

Keep in mind that the credit card is a responsibility and you should use it carefully and have the caution of calculate how much are you going to pay monthly to pay the debt of the credit card, but it is also important to know what are the fees or costs of having the credit card, most of them charge an annual fee.

In summary, you should have all the documentation, a good credit score and opt for a credit card that can be obtained with your FICO in order to get it approved. It is recommended to check for the fees if you past the payment for some reason, the rates (if they are fixed or viable and on what bases are they able to variate). You can find more information in internet about it and most of the banks and financial institutions have websites where the information found.

You may also like...

Popular Posts

Leave a Reply

Your email address will not be published. Required fields are marked *