Apply For A Credit Card With Success

Tuesday April 14, 2009

Every time you apply for credit cards, you face the bank or financial institution's lending criteria. However, that doesn't mean you have to face credit card application rejection. Even if you have been unsuccessful before or are looking at a credit card for bad credit, we can show the way to successfully apply for credit card.

However, before you apply for a credit card, you need to find the right card to suit your needs. There are a number of resources on the internet that compare credit cards via a range of criteria. You will need to select the best credit card that represents outstanding value for your usage purposes.

This could be a low rate credit card, a low annual fee credit card, or even a balance transfer credit card. The latter is especially useful if you're trying to clear credit card debt that is costing you excessive amounts in interest.

Once you find the credit card you like, you can apply for a credit card online, over the phone or in person at your chosen institution. Online credit card applications are the quickest and for many people the most convenient way to apply.

Just make sure the website you are using has the appropriate security measures. Usually, you will see a padlock in the information bar on a secure site, and most major Australian banks take pains to ensure online security.

You can then read the terms, conditions, fee and charges brochures, and our advice is to spend time doing this. Although fine print can be a daunting and sometimes frustrating prospect, it is imperative to check this information before making a commitment or you may find out there are some nasty surprises with your credit card that escaped your attention.

Next, look at the criteria the banks do provide. Usually, this includes income and age requirements. Generally speaking, the banks ask that:

• You are 18 years of age, or have a parent/guardian's signature if you are over 16.

• You are an Australian citizen or permanent resident.

• Income requirements typically start at around $20,000, but this can be much lower for a student card and much higher for gold or platinum credit cards. Your income will normally dictate your credit limit.

• Unless you already hold an account with the bank, you must provide ID and other financial information such as current debts or savings.

It's important to be truthful about all this information as the banks will likely be able to access a lot of it through your credit file anyway. You credit file contains your credit history, and every financially active Australian will probably have a credit file. You can access this file from mycreditfile.com.au, and if you are not in need of an express delivery, it will cost you nothing.

If there are any mistakes on your credit file, it would be wise to have them fixed up so it doesn't affect your credit rating. Speaking of which, this will also be contained in your credit file.

If you have struggled to get a credit card in the past, it may be due to this information on your credit file. Any repayments or defaults you have made in the past will be stored here, and banks will use this information to determine whether you can access a certain credit card.

If in the past you have missed payments etc, you may have to start to build a positive credit rating before you can access a credit card. To do this, you simply have to show that you can pay bills and debts on time, which could be anything from a phone bill to Foxtel repayments. Any ongoing bill that you pay with consistency will do the trick.

Other criteria that banks may use to determine whether to allow you to apply for a credit card is your living and employment status. While we know that credit card providers will have a minimum income requirement, they may also look at how long you have been employed and the job stability.

If you are still in the probationary period at your place of employment, it is a good idea to wait until your position is secured before deciding to apply for credit cards. Otherwise, banks may view your employment as a liability and may reject your application.

Having a stable address will also earn you points in the bank's eyes. A person who moves around a lot or that cannot provide a stable residential address may find their credit card application is refused. Establish a stable address and this will help you successfully apply for credit.

Finally, applying for multiple credit cards in a short time will also affect your credit rating, especially if you are being rejected. You may be best to leave it six months if you have been rejected recently, or have been hopping from balance transfer card to balance transfer card. Unfortunately, banks will not look kindly on this behaviour.

Of course, if credit card debt is a problem for you, or you need a larger amount of credit, you may have to consider a personal loan. This can offer more stability when it comes to repayment, and while interest rates do not compare to the low offers of balance transfer credit cards, they can often be much lower than premium cards charging 15-20% interest.

If you are still struggling with getting a credit card because you have bad debt, bankruptcy issues or defaults, you may need to speak to a bad credit expert. Just make sure you are getting a fair deal that is not going to make matters worse. Use independent research to determine the value of any credit cards and lending facilities.

Good luck and we hope this info helps you successfully apply for a credit card.

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