These days due to secure and user-friendly online banking platforms, applying for a credit card has become very easy. The applicants do not need to visit the bank branch to apply for the credit card of their choice, they can easily apply for the credit cards online from anywhere they are. Once you have applied online, you will receive a response sooner as compared to when you apply using other methods.
Steps for Online Application of Credit Card
The credit card companies have made it very easy to apply for credit cards online. These are the steps to be followed when applying for a credit card online.
1. Checking the Credit Score
The credit score helps in providing the credit card company with an idea of your credit worthiness as it includes various factors in relation to credit use. These factors are-
- History of Payments
- Borrowed amount
- Duration of your Credit History
- New credit and Credit mix
You should maintain a good credit score before applying for a credit card. Also, having a knowledge about your credit score and updating your credit report can assist you in shortlisting which credit cards you can apply for. For example, if your credit score is average to good, then there is no point applying for the credit card for which only the applicants having an excellent credit will be eligible.
2. Select the Credit Card You Require
If you are applying for the first time, then it is suggested to select free credit cards or credit cards with low annual fees and a low rate of interest. You should also decide on the type of credit card you want to apply for, whether it is a reward-based card or air miles card or travel card or airport lounge credit or any other. After you have decided the type of the card to go on with, select the credit card that offers the highest overall value and suits your needs the best.
3. Collect the Information Needed to Apply for the Card
Before starting the application process for the credit card, you should make sure you have all the necessary information required to finish the application. Mostly the application forms include some basic information such as your name, current and permanent address details, contact details, and some of your specific financial information like your income. Apart from this, you will also have to provide some security information, your date of birth, your parents’ name and email address.
If your credit file is thin, that is, you have a little or no credit history, then you may have to submit more information or the proof of the information you have already submitted, like a copy of any government issued ID or your previous address. The credit card company uses all this information to get an estimate of your creditworthiness.
4. Submitting the Application
- While you have submitted your application online, you are providing the credit card company with permission to run a hard inquiry on your credit, which might have a negative impact on your credit score (especially when you are not approved).
- Applying for a credit card online is considered to be the most preferred and common way as you can conveniently compare various benefits provided by different credit card companies to make sure you receive the best rates and rewards available.
- Please note that if you have a pre-approval then it will lead to a soft inquiry on your credit and does not really affect your credit score. But, a pre-approval does not confirm that you will get an approval for the card you have selected.
5. Wait for a Response on Your Application for the Credit Card
- Applicants having a good to excellent credit might get immediate approval after submitting the application online. Applying by mail or phone or on the branch takes a longer time to get a response from the credit card company as compared to online applications. The applicants with average to poor credit might have to wait for a few weeks to get a response from the issuer of the credit card.
- In case your application is not approved, you will have to wait for a few months before you can again apply for a credit card. You can rebuild utilize this time to rebuild your credit. Also, it is not ideal to request for more credit frequently as this can have a negative impact on your credit score. Hard inquiries like applications for credit cards stay on the credit report for a long period of time.
- However, in case you think you were eligible for being approved for the credit card or fail to understand why your application was rejected, you should contact the credit card company for reconsidering your application. You should be ready to answer some additional questions on the reasons for which they should reconsider your application for the credit card. Also, make sure you call the credit card company within the time period your application is valid otherwise you will have to apply for the credit card online again which can lead to a hard inquiry yet again which in turn impacts your credit score negatively.
Use the Card Wisely
If your credit card application has been approved, then you can enjoy the various benefits and privileges it has to offer. A credit card can prove to be helpful for building your credit with time. However, you should know that your credit card needs maintenance and your attention.
Over to You
You have multiple options as to how to apply for a credit card. You can do it over the mail, or on call, or by visiting the nearest branch or through online banking. Out of all these methods, applying for the credit cards online is the most secure, common and convenient. The online applications get a quick response as compared to the other.