Getting your credit card application approved as easy at it seems. Many applications fail to get approved for a variety of reasons. Some get disapproved because of a few silly mistakes in the application form, while there are other rejected ones that turn out to contain the wrong information. Make sure that your application does not get rejected by carefully and successfully completing each and every step of the application process.
The application process actually comprises more than just one component. Familiarize yourself with them, so you can get your credit card in no time.
1. The Initial Application Form
The initial step in applying for a credit card is to complete the application form. Whether you opt for an online application through a credit card website or an offline application where you send your requirements through snail mail, you will have to send a complete application form.
The fields usually contain typical information, such as your full name, physical address, income, and other basic details. There are two general categories in the form. One is the required fields, which will ask questions necessary for the approval of your credit card. As for the optional fields, you will be asked questions that you don’t necessarily have to answer. These questions, though, may have a bearing as your application is processed.
2. The Terms and Conditions
Credit card companies are required by the law to disclose what the terms and conditions of your credit card are. Information related to annual percentage rate (APR), cash advance, membership fee, returned check fee, grace period, and the like are explained here.
Make sure that you understand every clause in this agreement, as signing it will be legally binding. If you end up not fulfilling your part in the terms and conditions, you may be sanctioned by the law.
3. Balance and Credit History
Aside from errors in the application form and lack of understanding of the terms and conditions, a major reason why your credit card application may get rejected is a bad credit report.
Your credit report actually refers to different components. One is your payment history, which is based on how punctual you are when it comes to paying on time. It can also reflect the number of times you have applied for a credit card, or even the number of credit cards you own. Another outstanding reason that can be a sufficient ground for your rejection is the number of loans and mortgages you own.
The mentioned factors may just be numbers, and you can still be fully capable of paying despite your bad credit report. However, it all boils down to the figures. And if the figures aren’t good, you might not get that credit card you are applying for.