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FREQUENTLY ASKED
QUESTIONS ABOUT CREDIT CARD APPLICATIONS
Most of the people are
not clear about the concepts of a credit
card. They don’t even know how to fill
an application form. This article has a
list of frequently asked questions to
clarify some doubts of the credit card
applications.
1)
When am I eligible to apply for the
“Credit Card”?
Normally, in most of the places you are
eligible for the credit card when you
become 18 years old. In some places the
age limit might be lower. You need to be
a citizen of the country to apply to
with the banks or the financial
institutions in that country.
2)
Is it necessary to have an account with
the bank to apply for their credit card?
No, you don’t have to have a bank
account with the bank to apply for the
credit card. However, you need to have
at least one bank account to be eligible
for it. Otherwise the credit card
companies will most likely reject your
application.
But if you apply for the secure credit
card then you have to deposit a security
amount at the bank that is chosen by the
issuer of the credit card, mostly a bank
owned by them.
3)
Is it ok if I apply for multiple credit
cards at the same time?
Yes, you can. It is at your will to
choose where and how many you want to
apply for. However, submitting several
credit card applications will decrease
your credit score. Therefore, you should
do your research to find the lowest rate
and apply for just one card.
It is also not a good habit to have
multiple credit cards as it can cause
you to get into serious debt.
4)
Is my credit score negatively affected
by rejected applications?
I
was forced to fill out an application
form for a credit card by a sales girl
who said she will offer me a discount of
20% just for filling it up. I also told
her that I have bad credit. Will this
hurt my credit score?
Each time you fill a credit card
application, you are actually
authorizing the agency to check your
credit history. Your credit score is
also dependent on the number of credit
requests made. Therefore, every time you
authorize an agency to check your report
you will be decreasing your credit score
which will become a significant number
if to many requests are made.
5)
What are the important points when I am
filling an application for a credit
card?
The most important thing is: read the
entire fine print of the contract very
carefully before signing it. If you are
doing it online, then you need to click
on the links and go through the “Terms
and Conditions”. The price of not
reading the fine print carefully enough
is too high for any one to pay. It may
state that you have to pay several kinds
of fees which you were not aware of till
you got your bill. |
