Credit cards normally come with an annual fee, depending on factors like card limits, benefits, etc. However, another variant of this card is considered a lifetime free credit card, which means it has no annual fees. This special card, normally offered to credit-worthy customers, provides a much higher credit limit. Similar to loans, credit card applications might only get accepted if they meet the basic requirements. This article will detail the common mistakes people make while applying for these credit cards.
Five Common Mistakes Committed During The Application
A credit card application is not just about filling out the details of the form. Rather, after the application, the details are scrutinised before approval since people tend to misuse their benefits. Hence, the best way to answer the question of how to apply for a credit card is by mentioning the five basic mistakes. Let us read along to learn about them and how to avoid them.
- Terms And Conditions
We all have a very common tendency to overlook terms and conditions since we usually feel we know what is written and because they are quite long. However, in the case of credit cards, we must refrain from doing that since each free credit card has different clauses, and ignoring them might cause us trouble in the near future. Read through the terms and conditions carefully to detect any clause that might be unfavourable for you.
- Multiple Applications
benefits, limitations, terms, and conditions. Most customers cannot comprehend their credit card uses and tend to make several applications. This will harm your credit score, and the issuer can also inquire about it. Hence, providing a six-month gap between the two applications is best.
- Unpaid Debts
The obligation-to-income ratio is a major parameter that CC issuers check before approving card requests. Maintaining a fixed ratio makes the approval easier and faster along with enhancing your credit score. Hence, before applying for a credit card, it is best to clear all or most of your debts; otherwise, your bill payment capabilities will become questionable.
- Lack Of Research
There are a lot of parameters to consider when opting for credit cards, such as interest rates, maximum limit, fees, additional benefits, minimum repayment, reward points, etc. Moreover, these factors are not uniform throughout. Rather, each bank has its own set of features and facilities. Hence, it is fundamental for an applicant to go through all the available CC options before applying for a suitable one.
- Unstable Income
You should also consider your source of income and employment type before applying for a credit card since issuers utilise these parameters to judge your credibility. If you do not have a consistent flow or reliable source of income or any additional income, there is a high chance your application might get rejected. Also, providing false details will not work because your details will be methodically verified before approval. Hence, it is suggested that you first ensure your income flow before applying for such credit cards.
Summing Up
If you are wondering how to get a credit card, then avoiding these mistakes is extremely necessary as they allow the issuers to doubt your motives and thus deter them from approving your verification. Abide by these guidelines for a smooth process.
