Get More Financial Control and Clarity on Credit Card Service

As we all know that Credit cards are issued by banks that allow us to make cashless payments for the goods and service we acquire. Banks charge some percentage of interest on the cash borrowed from the bank. These interest rates vary from bank to bank and are proportional to the financial situation of the applicant. Some of the banks also charge annual fees that are added to the account and accrue interest the same way that purchases do. But, credit cards are not easily available to every individual. There are certain conditions and requirements of the bank that a person should meet before applying for a credit card.

In this article, we will give you more clarity on the procedures and terms of the bank for credit card approval. Let’s learn about them step by step.

Factors for approval

Credit card companies or banks takes into consideration number of factors such as credit score or history, employment history, and income before giving the approval for issuing a credit card. They also keep a track on how the applicant has lived at his current address. He must be an adult i.e. older than 18 or have a legal guardian co-sign for the credit card. These factors play a major part in determining the credit limit and interest rate on the card on approval.


Disclosure of terms

It is essential to disclose the interest rate on credit card application. The terms would include information on whether the rate is variable or fixed, grace period, calculation method of financial charges, nominal finance charges, transaction fees, annual fees, and fees for cash advances, overdrafts and late payments etc.


Unsecured Credit Cards

Unsecured credit cards allow the customers to make purchases without any security deposit or application. The payments so made is based on the legal promise and provided to those with a decent credit history. Credit card applications will only require the name of the applicant, date of birth, address, length of time at their residence, social security number, employment details, and income proofs.


Secured Credit Cards

Unlike unsecured credit card, Secured credit cards require an advance deposit or up-front payment for the approval. This kind of card is best suitable for students, shoppers, senior citizens and frequent travelers. The money that you spend using your credit card is deducted from your bank account directly. Such kinds of card have less strict approval policies and are commonly issued to those with a low credit history. Most companies may even charge some money for application or processing fee.


How to protect your card data while making the purchase

If you are looking for applying for a credit card then you must consider the above mentioned factors to make your application strong. Once you get the approval, it is necessary to follow additional security measures while making any purchase to protect your credit card data issued by the bank. This data will include your information, your account’s information and certain codes that should be revealed in front of anyone. Always use payments gateways employed with more security enhancements. Also, if you already own a credit card and doubt if your data is leaked or being used by identity thieves, then apply for new credit card data to seek additional protection.

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About Collaborative Post is happy to provide guest posting opportunities for small business owners. This article was created by one of our contributors.

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