What Are The Basic Requirements For A Credit Card Application?
If you've never applied for or held a credit card before, you may be approaching the whole event as an ordeal to be got through. All the talk of credit checks and minimum requirements and credit card comparison can be intimidating if you've never done it before. At moneyeverything.com, they make it easy for you to understand the process and walk through it. You can compare credit cards, find out how to choose the best credit card and even fill out your credit card application online right from their web site. It's both not as difficult as some make it seem, and more complex than many credit card companies would like you to believe.
So what precisely do you need in order to apply for a credit card?
The minimum basic requirements for a credit card application depend on the specific card for which you're applying. In general, for a basic, low maximum balance, general use credit card, the requirements are simple enough:
- You must be over 18 years of age.
- You must have a verifiable source of income.
- Your income must meet the minimum income required for the card.
- You must have a bank account in your name.
When you fill out your application, you'll be required to key in:
- Your legal name
- Your legal address
- Your agreement to abide by the terms and conditions of the credit card application if you are accepted.
It's that third part that can be tricky. Far too many people simply tick off the little box beside the I agree statement without reading through the terms and conditions to which they are agreeing. And it's within those terms and conditions that you'll find the most important things that you need to know about the credit card for which you're applying.
Why should I compare credit cards before I apply for one?
Simply put, because some credit cards are better for you than others. This isn't a matter of their being a 'best credit card'. There's not - not really, at any rate. There is a 'best credit card for me to use right now', however, and a credit card comparison can help you decide which of the many UK credit cards on offer is that best credit card.
How do I compare credit cards?
There are several different things that you should compare when you compare credit cards. The most important are:
- APR stands for Annual Percentage Rate. That's the rate of interest that you'll pay on any balances that you carry on that credit card. If you don't pay off your bill each month when it's due, you'll have to pay a percentage of the amount on top of the balance as interest. The lower the APR, the less it will cost you to use your credit card.
- Introductory rates are low interest rates that are often offered by credit card companies to entice you to apply for their card. Compare credit cards by both the introductory rate AND the length of time for which it applies.
- Annual fees are charged by some credit card companies. They may be called membership fees, or another name, but if you pay them either monthly or annually in order to keep your credit card, they are annual fees. Usually, a credit card with an annual fee with offer a lower APR.
- Credit limit is the amount you'll be allowed to charge on your credit card before it will be rejected. If your limit is £500, and you charge £500, you won't be able to whack anything else on the card till you pay off part of the balance.
How will it help me to compare credit cards?
When you compare credit cards by mail offer or on a site like moneyeverything.com, you can choose the credit card that makes the most sense for how you use your money and your credit. For instance, if you know that you won't carry a balance from month to month on your credit card, the APR is not that important to you. In fact, if the annual fee you'll pay for a low interest card is more than you'd probably pay for interest charges on the highest carried balance you're allowed, skip the membership fee and take the higher interest card.
You can learn more about how to compare credit cards, as well as review credit card offers and apply for a credit card online at moneyeverything.com, your source for everything about money.