Planning to apply for a Credit Card online? In this age of speed, we want everything to be done instantly and this is what credit card companies are trying to cash by providing the provision to apply for their credit cards online. Applying for a Credit Card online is easy, fast, time-saving and amazingly punctual in obtaining response to your application (provided, you have a decent credit rating). Even if you are not an account holder of a particular bank you are eligible to apply for a Credit Card. In a matter of minutes, you can join the rolls of precious Credit Card Companies whose customer ship is considered to be an asset and bask in that glory forever. If you need an extra Credit Card, intimate the issuer and they might be happy to oblige you.
The following are the points to be considered while applying for a Credit Card Online:
Pick the Right Card: Selecting the right Credit Card is absolutely essential when you are going to enjoy the company of the ‘plastic’ for years to come. Choose the Credit Card that fits your financial situation and whose credit limit does not go way above your income. Several companies offer tables and charts wherein you can compare the benefits and interest rates that come with each type of Credit Card and also know the varied variety of Credit Cards, these companies usually offer.
Credit Status: Knowing your Credit Score will help you know, if you are eligible for a particular type of Credit Card or not. You can also calculate your credit score through online by using the credit calculators that are available for free on major financial websites. Do not get into applying-spree and apply for several credit cards at a time. Such ridiculous behavior will diminish your Credit Score considerably. Know the pros and cons well before applying for a Credit Card.
Online Threats: Phishing is the common threat that an online Credit Card customer usually faces. Scamsters usually break into people’s accounts and steal their passwords and such other sensitive information and use the same for stealing money from your account or make purchases using your Credit Card etc.
Security: With online applications, the threat of losing your online identity always lurks on your head. Thousands of people rely on internet for filling in their Credit Card applications, for making their monthly payments, for making enquiries about their bill statements etc., and all these things can be known by an outsider once he successfully hacks your system or bank account.
As almost all the credit companies carry on their transactions online they are trying their best to make their transaction procedures user-friendly and make the online environment threat-free to their customers. Major credit companies use SSL (Secure Socket Layer) technology to ensure the online safety of their customers and pave way for a safer browsing. Every year thousands of people are losing their money and Credit Card details to the pilfering strangers and are losing their online identity irrevocably.
Precautions: Safety measures that need to be taken while applying for a Credit Card online are as follows:
- Do not use public systems or internet hubs for submitting your Credit Card application form. Use a secure computer or personal PC to submit the necessary information to the Credit Card Company.
- Make sure that your system is hack-proof and will not allow anybody else to mess with your privacy.
- Do not reveal the numbers, passwords and such other details related to your online credit account to any body.
Alternative Methods
If you don’t want to risk the online threats you can take the oft-treaded path of applying through mail or by telephone (not-so-safe method). You can download the application form and mail it to the Credit Card company but it might take a good deal of time for you to receive your new Credit Card.
Getting Approved
Going gets tough: Getting approved for a Credit Card can be a tougher task than you think. If your Credit History does not depict you as Mr. Clean then chances are that, you might not get approved for a credit card at all. There was a time when Credit Card Issuers used to spam your inbox with mails saying, you have been pre-approved for a Credit Card to attract the customers to their company. Now, they are very discreet about offering their cards and privileges and do not wish to see defaulters on their customer’s list.
People with no credit-history like students can also obtain a Credit Card easily when compared to the people with botched-up credit history. What matters is, how can you prove yourself to be worthy of a Credit Card? Inflation-hit economy has forced the Credit Card companies to tighten the rules and regulations for obtaining a Credit Card, so as to deter the defaulters from enjoying their card privileges. Long ago, issuers have shifted from pampering mode to scrutiny mode; now, they are more interested in the financial caliber of the customer more than ever before.
Credit Worthiness: Each issuer will have their own set of rules to gauge a particular person’s financial status. Depending on those rules and the card you propose to take up, you will be approved for a Credit Card. Banks and Credit Card Companies look for certain things while evaluating your fiscal profile to be able to decide whether to approve or not for their company’s Credit Card. Some such tell-tale signs of credit worthiness are as follows:
- The amount you earn the amount you owe and the amount you are likely to be able to pay to the issuer.
- If you happen to own a vehicle, property or such assets that can serve as collateral in times of need.
- How well you have paid your bills and debts?
- The nature of your work-life, stable income or a job-hopper etc.
Know your Credi (ta) bility: To know your current Credit Score, approach any or all the 3 Credit Bureaus - Experian, TransUnion and Equifax. Just like their names, their functioning and the reports churned out by them vary.
Experian: 888-397-3742
TransUnion: 800-916-8800
Equifax: 800-685-1111
Get a separate Credit Report from each of these bureaus and compare and see where exactly do you stand credit wise. See if the report needs any corrections and get them made as soon as possible. Fight for each point of your Credit Score, it will matter a lot during your assessment by the issuer.
Fix your Credit Status: In case, you are greeted by a defaults-laden credit report, it’s high time for you to sustain your financial status. Some tips for your fiscal revival:
- Start making payments on-time and get rid off all the old debts.
- Live frugally.
- A secured Credit Card might help you re-build your finances without adding up to your woes.
- Choose the right Credit Card to apply for. Go by your needs and not dreams while choosing a Credit Card; it should suit your financial situation and should not deplete your credit score in any way.
- Do not apply for too many cards, the influence of each rejection can be easily felt on your credit score.
Right Number of Credit Cards: Do you have the right number of Credit Cards with you? Well, not sure right? We have Credit Cards for everybody and everything, for students, for purchases, for business, whatever the purpose might be the Credit Cards are here to make your life better in this fiscal world. Till recently, various types of Credit Cards offering bounty of perks used to adorn the wallets of people. Due to a plunge in the inflation, people have started getting rid off their cards slowly and are still doing so to save them from going broke.
Credit Card –A necessary Evil: As there is no standard number as to how many Credit Cards is right for an individual, we can only say that, have no more than you can actually pay back. Let the expenditure on your Credit Cards be proportionate to your income and your affordability. Hence, we can boldly say that-‘the fewer the Credit Cards are the lesser the worries’. Every Credit Card you use is linked directly to your credit score; so, do not simply open/close them all without thinking about its repercussions. Without a Credit Card your Credit History will surely look incomplete, so you cannot forego a credit card just like that. It is the Credit Card that gives that special zing to your Credit History and makes you look credible in the eyes of lenders and issuers and its absence will hit your credit score hard. A Credit Card is a necessary evil and you should be able to maintain it well to avoid goof ups in your Credit Report.
Dwell on Decent Number: For those who are wondering why to have a decent number of Credit Cards, here comes the answer- using up the credit limit of your Credit Card for buying a single item will set the issuer’s security alarm flaring. They might doubt your ability to pay back the debt and might view you as a risky customer. To avoid such negativity, use multiple cards to make bigger purchases and do not exhaust the credit limit of a single card alone.
The Balancing Act: Unless you have decent number of Credit Cards, you will not be able to build a strong Credit History and this might minimize your credit worthiness in the financial world. So, a single Credit Card is not going to work wonders on your Credit Report; and in the same way, too many Credit Cards also will spoil your credit potential. The monthly hassle of paying credit bills becomes more complicated when you have too many Credit Cards to take care of. Do you know that many people fail to pay their credit bills duly because they cannot remember for which card they have made the payment and for which they haven’t? Balance the number of Credit Cards well so that you can earn more credibility with your lenders and will not have to take the help of debt consolidation agencies for paying off your debts.
No Card-Hopping: Some people find it difficult to stick to a single Credit Card for a longer period and this trait of theirs will diminish their image considerably in the lender’s assessment. Lenders prefer customers with long relationships with the banks and issuers, as they feel safe and secure dealing with such people. Avoid credit-hopping and stick to a single card for a several years in the row. If you cannot resist the temptation of a new card go for one but at the same time keep the old card running just to pacify your lenders.
Cancel/Closing Credit Card Account
Are, too many Credit Cards in your wallet bothering you? Looking forward to get rid off some of your messy Credit Cards? Often, we lose track of how many Credit Cards do we really use regularly from the slew of Credit Cards that adorn your wallet. Not many, we suppose. We even throw away unused Credit Cards here and there and then, panic when we couldn’t locate them in need. To avoid all this fuss, the best thing to do is to close all those Credit Card Accounts which you haven’t been using for quite sometime. Canceling the unwanted Credit Cards, closing the credit accounts is the wise thing to do in this recession-hit times. You don’t want to waste money on Credit Cards just for flaunting them around right!
Some people do not want to let go off a particular issuer just because they have been with them for several years or was handed-down by their parents. There’s no place for sentiments and partiality in matters of money, use your head and get rid off the card as soon as you can.
People do cancel their Credit Cards, the way they cancel their air tickets or magazine subscriptions but the procedure is a little time-consuming when compared to the other things. Canceling a Credit Card has consequences of far-greater reach like affecting your Credit Report when not done in the right manner. You have to tread cautiously here so as not to - offend the issuer, taint your credit report or mess your credit status in any possible way. Terminating a Credit Card will make you go easy on paying bills and will reduce the risk that comes attached with a Credit Card.
Points to mull over: Is there any balance that needs to be paid off by you? Do not think of closing the account unless and until you are totally done with your payment. At times, canceling a Credit Card can prove to be as difficult as walking out of a relationship. Some issuers employ various tactics to stop you from closing your account with them; some people will sweet talk you by offering various irresistible offers whereas some others will threaten you by hiking up the interest rate you have to pay if they happen to know about your cancellation in advance. So, do not spill the beans until you have paid off the entire balance on your Credit Card.
If you have to cancel your Credit Card by all means, do it smoothly and neatly without burning any bridges with the current issuer. Who knows, you might have to go back to them for some loan in future!
Intimate the Issuer: Contact your Credit Card Issuer and intimate them about your desire to terminate the credit account with them. Find out what’s the standard procedure for doing so. Several Credit Card Companies offer telephonic cancellations and personal consultations but the best thing to do is to send a written request to the issuer either online or by post, asking them to close your credit account and once your request has been processed, send you a note of confirmation of the same. If you are planning to mail the request letter, make sure that you have that particular receipt with you. This way, you’ll have tangible evidence in case if a problem arises later.
Follow it up: After the cancellation of your Credit Card, wait for 30 days so that your Credit Report gets updated duly. Then, check your credit report to see how the cancellation has been mentioned in it. Make sure that the report says that the card had been cancelled upon your request and not the issuer’s. This is the common mistake we get to see in credit reports and steps should be taken to rectify it immediately.
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