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. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.