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Buying on a credit card is not an option restricted to the end of the month, when the budget is reduced. Overall, 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 pocket.
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 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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Image: Reproduction/Pexels
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After all, 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 send your personal information, including a copy of some documents, for the request to work properly. In this context, the documents to have a credit card are:
- Cool name
- Social Security Number (SSN) or Individual Tax Identification Number (ITIN)
- Address to receive correspondence
- Date of birth, with day, month and year
- Employment situation
- Income Information
- Debt Information
- Permission to access credit history.
Other important parameters are determined by the so-called Card Law of 2009. From this legal document, it was determined that applicants can only access the credit card if they are at least 21 years old. But that doesn't mean that younger people can't get it, because as long as you're 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 positive credit scores. Even though it seems 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 understand better, think of your credit score as an index that gives companies confidence that you will not fail in your commitments. This means that you show by your score that you will not go into debt, be late on your bill or break your contract.
In more detailed terms, your credit score is made up of a 3-digit number placed within a scale. And it is this scale that helps card issuing companies carry out their credit analysis, understanding your behavior as a buyer.
In this score, several questions come into perspective, such as the history of payments you have made in your name, number of outstanding balances and how you have used lines of credit in the past. As each agency has different procedures, it is common for there to be different scores between institutions.
Despite this, most lenders use the FICO scoring model to generate this number and evaluate your credit score. You see, the higher the score, the better the offers for taking out a credit card. And 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 anything below that is insufficient to receive good offers.
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Image: Reproduction/Pexels
How to pre-qualify?
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 even available to those looking for a business credit card, as long as their 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 on the customer service channel of your chosen issuer; most likely this is available. This procedure is done because companies found your information on a list of trusted consumers.
Generally, this data is presented by agencies specializing in credit reports, hired precisely to present the documents to companies. Even though it may seem strange, this entire process is legal.
Consumers commonly approve this data sharing when they are signing bank account opening contracts, for example. Therefore, it is essential that you are careful and always read what is written in the documents, as this ensures that there will be no leaks or incorrect use.
So, did you like knowing 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 find out about good practices and how this impacts your tax life.
