Buying with a credit card is not an option restricted to the end of the month, when your budget is tight. In general, it is an option with several advantages, from multiple installments to the possibility of accumulating miles. Therefore, learning how to apply for a credit card is valuable knowledge for your life, but especially for your wallet.

Fortunately, the modernization of this type of procedure allows users to learn how to apply for a credit card online, without going through the stress of going to the branches in person. Consequently, accessing this financial service is becoming increasingly easier, and the prospect is that you will have everything in the palm of your hand in the future.

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So, what do I need to do to get a credit card?

In simple terms, there are two main steps to accessing the best credit cards: having a good credit score and organizing your personal data carefully to send to the issuer. This procedure is even applied to major market references, such as the Chase credit card and the Capital One credit card.

1. Credit card documents

In general, if you are looking for a credit card, you will have to submit your personal information, including copies of some documents, for the application to work properly. In this context, the documents required to have a credit card are:

• Legal name
• Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
• Address to receive correspondence
• Date of birth, with day, month and year
• Employment status
• Income information
• Debt information
• Permission to access credit history.

Other important parameters are determined by the so-called Card Law, from 2009. Based on this legal document, it was determined that applicants can only access the credit card if they are at least 21 years old. But this does not mean that younger people cannot get it, because as long as you are 18 years old and have proof of income independent of your family, you can apply for the card without any problems.

2. Credit score?

A more delicate and complex issue than personal documentation is the issue of a positive credit score. Although it may seem like just another number, it is through these digits that card issuing institutions understand whether you are a good payer or not, without all the bureaucracy of an interview, for example.

To better understand, think of your credit score as an index that gives companies assurance that you will not default on your commitments. This means that your score shows that you will not get into debt, delay your bill or break your contract.

In more detailed terms, your credit score is made up of a 3-digit number inserted into a scale. And it is this scale that helps card issuing companies to perform their credit analysis, understanding your behavior as a buyer.

This score takes into account several factors, such as your payment history, the number of outstanding balances, and how you have used credit lines in the past. Since each agency has different procedures, it is common for scores to differ between institutions.

However, most lenders use the FICO scoring model to generate this number and evaluate your credit score. You see, the higher your score, the better your credit card offers. This includes both higher limits and advantageous programs with other benefits.

In simple terms, the FICO score determines a credit score between 670 and 739 as good, but below that is not enough to receive good offers.

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How to do a pre-qualification?

Now, if you want to use the pre-approved credit model, there is nothing better than seeking prior qualification for this service. Currently, this type of service is available even for those seeking a business credit card, as long as your score is good, of course.

With this in mind, several issuers, such as Bank of America, Capital One, Chase, and Citibank, allow users to check whether they are pre-qualified or pre-approved for a credit card. However, this information does not guarantee approval, as it only shows that you have a good chance.

If you want to take advantage of this possibility, request the information through the customer service channel of your chosen issuer; it is most likely available. This procedure is done because the companies have found your information on a list of trusted consumers.

This data is usually provided by agencies specializing in credit reports, which are hired specifically to provide the documents to companies. Although it may seem strange, this entire process is legal.

Consumers often approve this data sharing when they sign contracts to open a bank account, for example. Therefore, it is essential that you take care and always read what is written in the documents, as this ensures that there will be no leaks or incorrect use.

So, did you enjoy learning how to apply for a credit card?

First of all, it is essential to understand that companies will not make loans for bad credit, regardless of how many times you try. Therefore, when applying for a credit card, also inform yourself about good practices and how this impacts your tax life.