Are you considering applying for a credit card? Did you know that if you have internet access you can apply online? Applying for a credit card is a simple process that you can do from the comfort of your own home by submitting an online credit card application.
In filling out a credit card application online, you will be required to provide some information about yourself. You will be asked to provide your basic personal information, birthday, social security number, telephone number, mailing address on the application. In addition to this, you will have to provide your gross income per year. The credit card company will then pull up your credit report to determine whether or not you are a good applicant for the credit card you have applied for. They will use your credit report information to determine the level of risk involved in granting you the credit card. If the risk is manageable, the application should be granted. Otherwise, the application will be turned down. Either way, the response time for online application is generally quite good, where you will generally have a response from the card company in a couple days.
If your online credit card application is accepted, the credit card company may also use the information obtained in the credit report to determine the interest rate that you will be charged on your new credit card. In accepting your card application, various levels of risk will be assumed. The lower your risk, the better will be your rates and your power to negotiate rates. Conversely, the higher your risk to the credit card company, the higher will the rates and charges associated with your credit card. Ultimately, what determines your level of risk is your credit score – the higher you score, the lower your risk to card companies.
If your application was rejected, then the credit card company must issue a letter to you, with an explanation of why your application was rejected. You do have the right to know if a credit-reporting agency provided negative information about your credit history, and you also have the right to request the name and address of that company. Do not be disheartened if you happen to get rejected after submitting an online credit card application. There are some things that you can do :-
First, you get a copy of the credit report that was used by the credit card company that rejected you. Examine the reasons that were given for rejecting your application. If the reasons are valid, then try to fix them. Always remember that your ultimate personal financial goal should always be to have your credit score as close to perfect as possible. So the rejected online credit card application might be a wake-up call. There may be a need for credit report repair.
Next, try to improve your debt to income ratio, pay off any outstanding debts as quick as possible. You may also want to try to buy something from a store that gives in house credit – even if it is something small, by using credit and paying it off you are building a credit history. Getting a small loan from a bank and paying it off is another way to build up your credit to help you get a credit card.
If your credit score is not ‘up to par’, then there are other types of credit card that you can apply for such as credit cards for bad credit, and credit cards for fair credit. These will help to build your credit rating while providing the much needed facilities of credit that you need
If your online credit card application is accepted, make sure that you use your credit card wisely. You should never charge more on your card than you can pay off comfortably each month. Actually if you really want to guard against messing up, never charge more money than you actually have and use your credit card in emergency situations or when it is absolutely necessary. You should also be careful to avoid credit card fraud by being careful about giving out your credit card number and making sure that your credit card is secure always.