7 Credit Card Application Mistakes to Avoid

Applying for a credit card is a fairly simple process. If you are applying online, you simply fill in the form and press the send button. Even though applying for a credit card does not require a lot of effort, there is still a possibility for errors. And if you are not careful, these errors can be costly.

 

Applying for the first You See credit card

Applying for the first You See credit card

You can see a commercial for a credit card that sounds like a big deal. Or, you can receive a pre-approved offer in the email and the card sounds too good to be true. Before you get into the application, consider that this card is not the best deal that there may be. There are dozens of credit cards on the market, so you never have to apply for a card – no matter how attractive it seems – without looking at your other options. You can always come back and apply for that card if you don’t find something better.

 

Not to shop around

credit cards

Because there are so many choices for credit cards, you need to look at a few others before making a final decision. If you know how to use a search engine, you can easily find and compare different credit cards. For example, you can compare all credit cards from a particular credit card company. Or, you can compare cards based on interest or rewards. The key is to make sure you look at the terms and benefits of multiple credit cards before making a final decision.

 

Do not read the Credit Card Conditions

Credit Card Conditions

Credit card issuers are required to display the cost of information about each credit card offer. Do not rely solely on the name of the credit card or initial advertisement to give you all the information you need about that credit card. Click through to find out the interest and costs on the card so you know how much the credit card will cost.

 

Applying for a credit card with Terrible Terms

credit cards

Ideally, you want the lowest interest rate credit card without annual fees and impeccable rewards. While people with bad credit usually do not qualify for the best credit cards, that does not mean that you have to accept a credit card with an extremely high interest rate or high annual fee.

That is why it is important to shop around. If you are seriously considering a credit card with worse conditions than the other cards on the market, you should look elsewhere. Worst case scenario, an application for a secure credit card that will require an upfront deposit, but there are many good secured credit cards out there.

 

Only choose a Credit Card based on the Initial Benefits

Credit Card based on the Initial Benefits

Some credit cards lure customers with an introductory interest rate, signup rewards bonus, double rewards, or no annual fee in the first year. The trick is to get you addicted to the credit card with the hope that you stick around for the more expensive, less favorable year two. Before signing up for a great year-long credit card, consider what the card will cost and you will benefit in the second year and beyond.

 

Applying for a number of credit cards in a short period of time

credit cards in a short period of time

Credit card companies are not positive about multiple credit card applications within a few days, even months. Your first application can be approved, but your chances of getting approved down with every subsequent application. Spread your credit card applications not only to ensure your chances of being approved, but also to ensure you are at a high risk of credit card debts.

 

Assuming you are going to be approved

credit cards

An excellent credit score or high income will not guarantee that your credit card application will be approved. A high level of debt, recent payment arrears, or recent applications for credit can lead you to be denied. If you are denied, the credit card company will send a letter telling you the specific reasons for the refusals.

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