Applying For Credit Cards

16 April 2009

When applying for credit cards there are a number of criteria that must be satisfied before the banks or financial institutions will approve. The successful candidates will be those who meet all this criteria, both those that are obvious and those more subtle.

However, before applying for credit cards, you need to find the right credit card that suits your needs. Start by comparing the top ten credit cards currently available to see the range that is on offer. Although, as a consumer you should select the best credit cards that represent the best value for your usage purposes.There are even government credit cards calculators available for you to check your suitable credit card use. This may be a low rate credit card, a low annual fee credit card, or a balance transfer credit card.

After deciding on which credit card is right for you there are a number of methods for application, either:

apply for a credit card online (typically the fastest and most convenient way to apply)
over the phone
in person at your chosen institution

When applying online, be sure to check the security measures attached to the website and that they are of the appropriate level, such as a padlock in the information bar on a secure site. Although the most major Australian banks ensure maximum online security.

Next it is crucial to read and understand the fine print attached to the credit cards and banks accounts. While this is a very boring task, it is very important to understand all terms, conditions, fees and charges brochures.

It is also important to ensure you satisfy the most basic criteria of credit cards applications; typically this includes income and age requirements. These include:

You are an Australian citizen or permanent resident.
You are 18 years of age, or have a parent/guardian's signature if you are over 16.
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.

Information such as this will need to be provided by you, but banks will also check on your credit card file. A credit file contains information on a person's credit history, and every financially active Australian should have a credit file. You can access this file from mycreditfile.com.au, which should cost nothing unless you require express delivery.

Usually it is a good idea to check your credit file at regular intervals in order to see if all information is correct and up to date as this information affects your credit rating. Your credit file will contain information of any repayments or defaults made in the past which banks will use to determine whether you can access a certain credit card.

If you have missed payments in your financial history you can build up a positive credit rating with tips from Veda, a company that handles all credit files, by simply showing that you can pay bills and debts on time.

Other important criteria that determine your suitability for credit cards are your individual living and employment status, including job stability and the duration of your employment. This extends to having a stable home address.

Once you start applying for credit cards, it is important not to flood banks and financial institutions will your applications, especially if you are being rejected as this will only perpetuate to other banks rejecting you after they see their competitors have.

It may be best to leave it six months if you have been rejected recently, or have been changing from balance transfer card to balance transfer card.

Of course, a personal loan may need to be considered if credit card debt is a problem for you or if you need more credit. Personal loans can offer more stability when it comes to repayments, and while interest rates may be higher than what credit cards balance transfers can offer, they are much lower than premium cards charging 15-20% interest.

Finally, if you are still being rejected in your applications for credit cards than perhaps you should meet with a bad credit expert, especially if you have bad debt, bankruptcy issues or defaults.

See what credit cards can offer you and compare credit cards here

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