Credit Card Application
The 8 Most Important Steps That Will Help You Fill Out Your Online Credit Card Application
Get your credit card application right the first time!
So you are filling out a credit card application for the very first time this needn’t be daunting. And with so many banks, building societies and financial institutions now offering so many different deals, there are lots of important factors you need to consider, we have put together the 8 most important.
Banks and financial Institutions are very clever in their marketing many entice customers with reward deals, whilst others offer interest free rates on new credit card applications as and introductory deal, don’t be distracted by sweeteners. The truth is, there is not one single credit card that tops the list.
Do some credit card company research first this will help you to work out exactly what you want the credit card to do for you, then decide which options suits you best.
So if you’re a credit card application first timer, don’t run away and hide. Simply follow our eight easy steps for a stress free credit card application.
Step 1 - The Credit Card Credit Check Everyone that applies for a credit card must undergo a credit check, this is usually dome by filling out a privacy consent form online and agreeing to this credit check. Your acceptance and the credit limit amount allowed will depend on this.
Always be honest when you fill out a credit card application. Credit card companies have restrictions in place for your own protection. If you are dishonest you are at risk of being charged with defrauding the credit card company for giving them false information.
Some financial institutions may knock you back for numerous reasons so if you are unsuccessful you may want to consider applying for a secured credit card. The bank then holds onto a deposit made against the credit limit of the account, just in case you don’t make your payments as agreed.
If you’re worried about your credit history, you can always request a copy of your credit rating from a credit reporting agency.
Step 2 - What is Credit Card APR? APR stands for Annual Percentage Rate. It takes into account the interest rate on any money borrowed along with any mandatory fees and charges. It will not include late payments charges generally speaking, the lower the APR - the less interest you will pay.
Step 3 - Who can apply for a Credit Card? Standard credit cards are available to anyone over 18 years of age, subject to a credit check. Premium credit cards like American Express Black also known as Amex Centurion is said to be the most premium and respected charge card it has an open limit but unlike traditional credit cards you must pay back the money you clock up against the card within 21 days. (Gold, Platinum and Black) usually offer highest credit limits and lower interest rates, but are generally offered to people with high annual incomes and are considered better credit risk.
Step 4 - The Best Credit Card to go for? Finding the best credit card to suit your personal or business needs is easy if you stick to following these guidelines:
A) If you only intend to use the credit card to make purchases, which you intend to pay off in full each month.
In this case the APR is of little or no concern as you’ll be making the repayments within the interest-free period. Perhaps opt for a card with decent fringe benefits - such as cash back offers, frequent flyer or consumer rewards or loyalty points.
B) If you intend to use the credit card for a major purchase and then intend on spreading payments over several months. Think about a credit card with a low APR. Will the APR change over a period of months? Some credit cards will offer a lower - or even 0% - introductory rate for the first 6 to 12 months on new purchases, but then this APR will often rise dramatically. If you’re clever and well organised, you could consider juggling payments between different credit cards. But be very careful and warned you may fall into a credit card debt trap: if you don’t have the time to juggle, you could come unstuck and end up with a massive interest bill down the line.
C) If you intend to use the credit card abroad when travelling or only in an emergency situation then you should go for a lower credit limit with no annual fee. Choose a credit card that is accepted in most foreign locations. Look at the fees and transactions in foreign currencies.
D) You may wish to support a particular charity of organisation, there is many charities now that have credit cards these charities will earn a sum of money for every purchase made by you at no additional cost to you. So in then your credit card purchases can go to a worthy cause and your favourite charity will gain.
Step5 - Interest Free Credit Card Periods : Interest-free periods don’t apply unless you pay off in full each month If your credit card offers ‘interest-free days’ understand that in most cases you get no interest-free period on purchases if you have an outstanding balance on your last statement. When your monthly statement arrives, you must pay the balance off in full (not just the minimum payment required) before you will get any interest-free period on CURRENT and FUTURE purchases. On some cards, the penalty is even worse. If you have an outstanding balance not paid in full by the due date, you will be charged interest right back to the date of purchase - thus forfeiting the interest-free period on those PAST purchases. The bottom line is: avoid paying interest on your credit card by paying the full outstanding balance on your statement by the due date.
Step 6 - The Good and the Bad in Credit Cards: Credit cards are often demonised and made to look bad as one-way tickets to spiralling debt. This is not the case if used sensibly they can be a great means of securing free, short-term credit and making money work for you. Credit cards are not the fault compulsive and impulsive shopping is often the problem.
They are by far the safer way of making purchases - particularly over the internet, or by telephone and mail order. If you buy something that costs more than $10 and less than $100,000, you gain a valuable legal protection under many sections of the Consumer Credit Act. Additionally, if you’re a victim of credit fraud you probably won’t be expected to pay, in most cases you will be required to fill out a charge back form and submit this and then the credit card fraud department will asses this and in most cases will award in your favour.
Step 7 - Using Two Credit Cards to Beat the Banks: Disciplined credit card users can use two credit two cards to maximise the benefits of the interest-free period offered and lower credit card interest rates. Typically credit cards offer one and not the other. However, if you have one of each type of credit card you can: make all your credit card purchases on the best suited credit card with interest-free days. If you don’t have the ready cash to pay the account in full by the due date, use a cash advance instead from the low-interest credit card to pay it off. This means you have made use of the interest-free period but have the outstanding debt attracting a lower interest rate. Of course, it is better to pay any outstanding balance by the due date and be done with it, rather than rolling your credit over from month to month like this as this can become a trap and may incur unnecessary credit card debt.
Step 8 - Avoiding Credit Card Debt: Credit cards are as much about responsible borrowing as they are about responsible lending.
It’s important to bear in mind that different interest rates apply to different means of borrowing. Generally speaking, cash withdrawals on a credit card will incur a higher interest rate, and the interest-free payback period does not apply. You will be charged interest instantly. Unless you keep control on your spending, you could end up in financial difficulties. High interest rates and late payments could make the situation even worse. So if you do intend on borrowing money for a longer period of time, it might be more cost effective to choose a personal loan.
Feel free to select a bank or financial institution listed within this website to fill out your credit card application.
Some of the banks offering great deals on credit card rates and incentives currently include: American Express, HSBC, Commonwealth Bank, ANZ, Aussie, Bankwest, St George and Citibank to name a few.
Good Luck with your credit card application from our Credit Card Application information team and please always try to remember credit used right is an asset, credit abused is a liability.
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