Online Credit Card Approval

Needless to say, electronics and the Internet have changed the way that people maintain and conduct their financial affairs. Internet banking, Internet bill pay, and Internet credit card applications have paved the way for faster and more effective money management.

Pre Internet banking dominance, everything financial was done through the United States mail and telephone. Everything was a slow process. In regards to credit card applications, you had to go to your local bank and get one, or you had to wait for a credit card offer to be sent to you in the mail. You had to fill out the credit card application by hand and mail it to the credit card company. If your application was accepted, you would receive a letter a couple of weeks later telling you such. Another few days later, you would receive you credit card. On the other hand, if your application was denied, you had to wait those few weeks just to discover this fact.

Thank goodness for the Internet and instant credit card application decisions. Nowadays, all you have to do is go to the website of the credit card company in which you are interested. You select the credit card of interest. Next, you fill out the available credit card application. Once that is complete, you submit the application and get a credit card decision, usually, within thirty seconds. Thirty seconds sure beats a few weeks!

If you are in the market for a credit card and you have never used an Internet credit card application, I suggest you give it a try and get an instant credit decision.

Things You Need to Know Before Applying for a Credit Card

Applying for a credit card is an interesting step along the financial journey of a person. There are many rewards and pitfalls accompanying credit card ownership and use, however, if you use credit responsibly, the rewards will shine through and the pitfalls will be minimized.

First, you need to know your purpose for getting a card. If you want a credit card to buy something you cannot afford or because it makes you feel like a responsible adult, then a credit card is probably not right for you. However, if your purpose is to establish a solid credit report and credit score and to build your creditworthiness, then a credit card can be an important tool to achieve these goals.

Second, you need to know if you have a credit report or a credit score. If you do, you need to obtain a copy and know what is contained in the report. If you do not have either, this information is also helpful. The point of discovering this information is to help you determine the credit cards for which you qualify. There is no need to apply for a card that has requirements that you cannot meet. Therefore, find out this information to narrow your available options.

Third, you need to know your limits. This means that you need to know your yearly salary and how high of a limit you can afford. Additionally, you need to know whether you want to pay over time or in a lump sum every month. Knowing these limits (i.e. yearly salary, affordability, flexibility of payment, etc.) will help you make a wise credit decision.

Last, you need to know the interest rates and fees associated with the card in which you are interested. Never get a card with an annual fee and focus on cards with low, fixed interest rates. Avoid cards that have a low introductory interest rate that resets to a high interest rate. Additionally, avoid cards with a variable interest rate. If undervalued by the applicant, these rates and fees can add up quickly and make the credit card have more pitfalls than rewards.

Discover your purpose for getting a card, find out your relevant credit information, know your limits, and find a card with good rates and little to no fees. Knowing these specific points will help you make a wise credit decision from which you could benefit for years to come.

Credit Card Applications for Beginners

Credit card applications are fairly straight forward and need no special training or education to fill out. However, there are some things you should know.

First, put your full, legal name of the credit card application. The credit card company uses this name to check your credit report to determine whether or not you are approved. Therefore, if you use a shortened name (for example, if your name is Christopher, do not put Chris on your application) on your credit card application, you are going to cause confusion amongst the credit reporting bureaus and are thus going to set yourself up for a credit report dispute in the future. Avoid all of this by always using your full, legal name.

Second, do not lie about your monthly or yearly salary. You are not going to get a higher credit limit by doing this, and additionally, your credit report is not going to support this contention. The point is, do not lie on your credit application.

Third, sometimes you are a student and you are employed, therefore, which should you put down when the application asks for employment status? In my opinion, you should use whichever job title (student or full-time employed) gets you the most benefits for the card for which you are applying.

Last, use internet applications whenever you can. I do not feel comfortable mailing or giving so much personal information (e.g. phone number, address, full name, social security number, employer, employment status, yearly income, etc.). Therefore, submit your credit applications through secure websites. Additionally, when you apply online, you usually can get an answer on your application within 30 seconds.

Following these tips will help make your credit card application go faster and more successfully.

How to Negotiate Credit Card Interest Rates

Only two circumstances exist in which you can successfully negotiate to reduce your credit card interest rate: (1) when you account is in good standing; and (2) when your account is so badly defaulted that your only way out is bankruptcy. Hopefully your situation is the former and not the latter.

First, if your account is in good standing, you will have a better bargaining chip than you would have if your account is in severe default. In order for you to strengthen your bargaining position, make sure you have an offer from another credit card company. You do not have to apply for the other card, you only need to be able to qualify for the card and the card must have a lower interest rate than your current card. You can get this other credit card offer very easily. You can find this other offer by looking on-line, checking your “junk” mail, or going to your local bank and grabbing an application.

If your account is in good standing, give your credit card company a call. Do not be secretive or discreet about your reason for calling. Tell the card representative that you are calling because another company has offered you a better interest rate. Continue by telling the representative that you are happy with their card and you want to know if they can match the lower interest offer. At first, the representative may tell you that it is not possible or that he/she does not have the authority to authorize such a request. At this point, ask to talk to a supervisor/manager.

Tell the supervisor/manager the same line you told the representative. If the supervisor/manager seems reluctant, express you disappointment in a stern yet polite way. Yelling or getting abusive will not help your situation. It may take a few minutes but you should be able to work something out.

The problem that exists is that you do not want to close your account. Closing your account could negatively affect your credit score. The credit card company knows this, therefore, they will be reluctant at first. However, customer retention is important for credit card companies, therefore, they will work with you.

Be polite yet stern and present the situation intelligently. Make sure you have another offer for which you qualify. Doing all of these things will increase your bargaining strength and will help you succeed in your purpose.

How to Get a Lower Interest Rate on Your Credit Card

A lower interest rate is a great asset to have. The most noticeable benefit is that you can save a lot of money on interest charges. However, you can also use that credit account as a bargaining chip with other credit companies. You can use the time tested “can you beat this offer” routine. Thus, the question is, how do you get a low interest card?

First and foremost, if your credit score and credit report qualify, you can apply for a low interest card. This is the easiest and most obvious way to obtain a low interest credit card. However, this method is only the easiest and most obvious if you have the credit score and credit report to allow you to get such a card. If you do not have the best credit score or report, there are some tactics you could use to lower an interest rate.

If you already have a credit card and your record with that card is flawless, you can call the credit company and request a lower interest rate. You have to be firm and you have to make a credible request. As a general rule, credit card companies want to collect at least between 8-10% interest on credit balances. Of course credit companies love when you pay more, thus, they never tell you that you can get a lower interest rate than the one originally given.

Anyway, back to the credible request. If your interest rate is 18%, asking for a 6% interest rate is just a waste of time. Even if your credit was flawless, no credit card company would drop your interest rate 12 points at one time. It is more realistic that your rate would end up somewhere between 13-15% based upon your relationship and history with the credit company and on your credit score and credit report.

The bottom line is, your options are limited unless you have a good credit score and credit report. Therefore, if your score and report are less than par, you are going to have to deal with your current credit account companies in order to get a lower interest rate. The worst thing that can happen is that your credit card company will not lower your interest rate. The best thing that can happen is that the company will lower your interest rate, therefore, why not give it a try? Just remember to keep it credible, but stay firm with your request and bring up your great history with the company from which you are trying to get a lower rate if the company seems reluctant.