Applying For A Credit Card

A woman is shown researching and applying online for credit card on her laptop
Online Loans And Types Of Credit
Part 1 Different Types Of Credit
Part 2 The Popularity Of Credit Cards
Part 3 Applying For A Credit Card
Part 4 Personal Loans Online – What You Need To Know

Everyone who has had credit in the past will have a credit rating and each time you make an application to open a credit card account, it will affect your rating. Lenders can see exactly how many times you have applied and if there are multiple inquiries over a short space of time, your credit rating will drop down. Multiple applications made within a few hours of each other can smack of desperation and are not looked on kindly by mainstream lenders. In this article we inspect:

  • Applying online for a credit card
  • Making sure you apply on secure websites
  • Pre-approved credit cards
  • Knowing how credit cards work

Secure online lending websites

Make sure that the website you are using is secure otherwise your personal and financial details can be at risk. The web address should always include ‘https’ and there should be a small padlock icon on the site. If the web address is ‘http’ this means it is not secure. Do some research and look for products that suit your individual requirements. There is no point in getting a card with rewards if you do not use or need them. Look for good interest rates and check out the list of fees that applies, paying special attention to charges for late, missed or non payments.

Pre-approved credit cards

Many people are offered pre-approved credit cards and understandably they think that these are a good offer. However, a pre-approved card may not be the bargain that it is made out to be. The interest rate could be higher than other cards and there may be higher charges.

A man is shown making use of his credit card to help himself build up a better credit rating

At the end of the day being offered a pre-approved card means very little as you will still have to pass the credit checks before being accepted. So, do not pay too much attention to these bogus proposals of instant credit.

Making the application

It is very important to be up front and honest when making an online application for a credit card. Complete the form in full and take your time as mistakes can result in a refusal which will have an adverse impact on your credit rating.

Being offered a pre-approved card means very little as you will still have to pass the credit checks before being accepted.

Give full details about your income including any bonuses or commission and make sure that you give the correct figures as requested i.e. do not mix up gross and net income. If you are unsure about any section of the application it is a good idea to contact the lender for clarification. Understanding how to apply for a credit card will help you to get the best result.

How credit cards work

Knowing how credit cards work is very important. You can avoid paying out extra charges if you understand how this form of credit works. A credit card can be used to help you build up a credit rating and it is one of the most convenient ways to pay for goods and services. An account will allow you a line of credit that is open ended (aka revolving credit). That is, as long as you do not exceed the credit limit imposed by the lender you can continue to use the card.

Some cards have an annual fee and you may be charged if you make late payments

Each month you will get a statement which shows the total amount you have spent and the minimum amount that must be paid by a certain date. If you pay off the balance in full there is no interest added but if the full amount is not paid off then interest is added to the remainder of the balance and this is how credit card debt can quickly accumulate.

Paying only the minimum amount demanded means that it could take many years to clear the whole debt. Some cards have an annual fee and you may be charged if you make late payments. So, these are some of the most important facts about credit cards that can be accessed online.

Online Loans And Types Of Credit
Part 1 Different Types Of Credit
Part 2 The Popularity Of Credit Cards
Part 3 Applying For A Credit Card
Part 4 Personal Loans Online – What You Need To Know

About the author

Mark Larsen

Mark Larsen has worked in the finance industry for over 20 years. Over the course of his career, Mark has amassed experience in personal finance and especially short-term lending. He shares his valuable insights on onlinecreditusa.com