How to Apply for a Credit CardApplying for a credit card
Selecting and applying for a credit card
It can be thrilling to get a credit card, but you have to be wise and apply with diligence...? Learn how to select the right card for you and how to apply successfully without compromising your creditworthiness. Selecting a credit card can mean processing a great deal of information and numbers - it's much simpler if you know what to look for.
APR is a measurement of the total card price. It is necessary so that you can easily check one card against another, but it means that it may not correspond to what it actually is costing you. It depends on how you use the card - in other words, how much you pay each and every months for a purchase or other transaction and how much you pay back.
Taking out credit on a credit card can give you a little more latitude - but make sure you pick the right card and repay it in full every single months if you can. Briefly, it is assumed that all your shopping will be done at the interest rates applicable at the end of the implementation phase, taking into consideration an annuity or perquisite.
You are also expected to use the full credit line on the first trading date and pay back in evenly spread payments over one year with no further transaction. Creditors must incorporate the APR in the credit agreements and pre-contractual credit information, and in most advertisements it can be used to benchmark different credit card types, but it should only be the point of departure.
Several card issuers determine your interest rates on the basis of your credit histories. That means that if you do not have a good credit standing, you could be paying a higher interest and therefore the APR could be higher than announced. When you have a bad credit record or are new to lending, so you have a "thin" credit record, you could be billed a higher installment.
Please ask your card issuer for a quotation before you apply - see below. Annual percentage rate of charge does not cover fees for delayed payment, overruns of your credit line or repayments. Map suppliers often lure you with special deals that are valid for a certain amount of years. Most commonly, you will be paying 0% interest on things you buy or settle your money owed (debt you transferred from another card).
This may prevent you from transferring funds to another card because the same deals may not be available, especially if your credit score has dropped in the meantime. Transferring a credit card means that you are transferring your debts from one credit card to another. While there are some good launch offerings, make sure you consider how long these will last.
Verify that there is a timeout for the transmission. Except if you are on a 0% deals or have more costly debt elsewhere, you should always seek to settle what you owed at the end of the monthly. You can apply for a credit card in several ways: According to the Act, you must first obtain credit information in a standardized format, the SECCI, and a credit facility for signing - either electronic or hard copy.
When you are buying around and compare different credit quotes, make sure you do not really apply for credit until you have chosen the best offer. Whenever you apply for a credit card, this is noted in your credit record. Too many requests or rejections may indicate that you are in difficulties, which may affect your creditworthiness.
As a result, other creditors may refuse an offer or raise the interest they are willing to pay. To find out if you are entitled to a card or at what estimated cost, ask the card issuer for a quotation. Occasionally, you may not be able to make an offer or indicate whether you are entitled to it until it has been checked by a credit bureau (CRA).
And if you are not yet willing to apply, ask if you can do an "offer search". It is a quest that leaves no trace in your credit files, not an applications quest that does. Use these measures to increase the likelihood that your job offer will be approved. For a small charge, you can then request a copy of your credit record from the rating agency.
However, it is always a good suggestion to ask the creditor why your credit request was rejected. Should something not be right there, speak to the credit ratings agency and, if necessary, consult the creditor to get it in order. Most importantly, you always receive your refunds on schedule - delayed or missing credit card, credit or debit card payments can seriously affect your creditworthiness.
The other things that influence your creditworthiness are: your work - is it sustainable and safe, and how long have you had it? your home - do you own your own home or have you been living at the same place for at least a year? your telephone number - it will help to put your fixed number on the claim sheet instead of your cell number.
When you have been rejected for a card because you have a bad credit standing, one way to rebuild your credit record is to use a credit card. However, these are usually more costly, so think twice before choosing one - and keep in mind that if you miss out on payment or only spend the monthly fee, it could end up making your credit worthiness inferior.