Unless you live off the grid, a credit card is a necessity, but it's not easy to get approved. You will often be required to have a card if you're booking a hotel, car service or even renting equipment. Additionally, more and more companies are moving their business to the web, and you often need a credit card to purchase online.
You can also use cards to make purchases before you get the money, but be careful with that feature. Additionally, cardholders can also access member-exclusive perks as free airport lounge passes, plane ticket discounts up to 20 percent, and more. You can also build your credit, so you have a solid footing for large purchases like buying your own home.
The truth is, having a credit card is a great addition to your wallet because you can pay in installments rather than cash upfront. But you should never buy more than you're going to have money for. Practicing such behavior will land you deep in debt, and once you're in, it's hard to get out. If you think you're ready to have a credit card in your life, but don't what to do next. We've got a little guide here that can help you apply and get approved.
What To Look For In Credit Cards
For your first credit card, look for a card with no joining fee or annual fee. Most of the time, banks waive these fees for the first year of owning the credit card. Moreover, check the features of the card and the table of fees and charges. For the features, look for the rewards-earning feature to maximize the card. You also want to look for a longer interest-free period to avoid interest and late payment charges.
Are You Eligible To Apply For A Credit Card?
First off, you need to be at the legal age of at least 21 years old to apply for a credit card. The age requirement differs from bank to bank; however, the commonly accepted age bracket is between 21 years to 60 years old. Aside from age, you also need to be employed, with a stable income stream.
Some banks require certain job tenure, a minimum of six months. There are also banks that require a minimum income for salaried individuals, usually above the minimum wage. Other requirements also include documentation like proof of residence, payslips, recent photograph, identification cards, and existing bank account.
How To Get Approved For A Credit Card
Even when you have all the requirements, the decision is still up to the card issuer. To guarantee approval, you must have an existing bank account. The chances of getting approved depend on the applicant’s capacity to pay. Therefore, save money in your bank account to justify your financial status.
If you have a savings or deposit account in a certain bank, you can increase your chances of getting approved if you will get a card with the same bank. This way, the bank won’t require additional requirements. Having a good credit score plays a big part in your getting approved. Make sure you build your credit profile and avoid piling up unpaid debts..
How to Apply for Credit Card Online
Visit the bank’s website and browse through the credit card selection. If you’ve found the best card for you, find an option to apply online. Afterward, you will be redirected to a page where you need to fill out a form about your personal information and employment details. Submit the application and wait for the decision in minutes.
How To Apply For A Credit Card And Get Approved Conclusion
Getting approved for credit cards depends on your financial situation and capacity to pay. It would help to have an existing bank account to prove your financial standing. In the time leading up to getting a card, it's great to get all your bills in order so your credit score looks stellar. Just remember that a credit card should help you live life a little more smoothly, but it should never be a financial crutch.
*Note: There are risks involved when applying for and using a credit card. Consult the bank’s terms and conditions page for more information.
