If you are looking to make a credit card application online then there are a number of things to consider before you apply.
1: Find the best credit card
There are lots of credit cards out there and they all probably claim to be the best. The trick is to find the best credit card for you. The best credit card will depend on how you will use it. If you want a card for occasional use and emergencies then you may want a card with no or low fees, if you won’t pay your bill in full each month and will incur interest then a low interest credit card could be best suited, if you pay your bills in full every month then a rewards card may bring maximum benefit and if you’re a high income earner and regular travelers then a Gold credit card or Platinum card may bring travel insurance and other useful privileges. From this information it’s now clear that the best credit card for you will depend on your financial position.
2: Understand the credit card offer
Once you have figured out the type of credit card may be best suited to then you need to compare credit cards from the same category. Look for the following main features:
Purchase APR: This is the annual interest rate that you will pay on purchases made on the card. When you don’t pay your bills each month and get charged interest the lower the credit card apr the lower your interest costs will be.
Balance Transfer APR: This the credit card APR charged for balances transferred from other credit cards or store cards. These often attract an introductory rate as low as zero percent interest for a fixed period. Make sure you check costs of any transfer fees and what interest rate the balance will default to once the intro period expires.
Annual Fee: Some credit cards charge an annual fee or have a fee that is waived in the initial year or two but will kick in down the track. These things make the card more expensive to use. Premium cards may offer privilages and rewards but are often coupled with high annual fees; do the math and make sure the benefits will be greater than any costs.
Interest Free / Grace Days: Most cards offer a certain number of days between a purchase being made and interest kicking in. No interest will be charged by your card issuer if you’re paying the amount due in full each month. If a card does not have a grace period then interest will be charged from the day a purchase is made. By the time you get the monthly bill then items might have a months worth of interest already applied. Stay clear of credit cards with no grace period as this could cost you hundreds in interest even if you pay your card off each month.
Rewards: Rewards come in different shapes and sizes. Try to work out the rough value of rewards per dollar spent and look to see the rewards are useful to you. You may also want to check if there are limits such as the amount of reward points or cash back you can earn in a month.
3: Have the right information ready
Applying for a credit card online is probably the quickest and easiest way to apply. It also leads to faster approval times which may be instant if the information provided is sufficient for approval and your credit score meets the criteria.
Before you apply online then make sure you have the required information to hand such as:
Personal details: You’ll need to provide personal details such as contact details including your residential address for past few years. If you have moved around then make sure you have your past address details handy.
Employment details: You will need to provide details of your employment status, wage and contact details for your employer. Probably best to provide an HR contact so they can verify employment and pay if required.
Identification: You may need details such as your driver’s license or social security number to hand a verification method
Balance Transfer Details: If you are doing a balance transfer then you will need details including the card number, issuer and balance of any credit cards or store cards you wish to have the balances transferred for.
Finance and Loan details: Depending on the lender they make ask for details of the other credit cards and personal loans you hold. Normally your will be asked for the card issuer, current card balance and the credit limit.
Every credit card issuer asks slightly different questions but covering these basics should ensure your credit card application goes as smoothly as possible. For more information on credit card features such as credit card apr details online.
Article on credit card application is by Richard Greenwood of finance comparison website creditcardapr.com.sg
