How To Apply For Credit Cards Successfully
Comparing credit cards and finding one that you like may be the first step towards a good relationship with plastic, but the successful application is what makes all the difference.
Most people fill out thousands of forms in their life and it often feels like once you have done one, you have done them all. The difference with credit card applications lies in the assessment process used by different card issuers.
Instead of focusing on personal details like your name, age or address, the attention is primarily on your financial situation.
Obviously there are some basic requirements that need to be met, like citizenship or permanent residency, but really it is more about employment, assets, debts and your overall credit history.
So how can you make sure your credit card application is a successful one? While there is no cheat-sheet for getting approved, the following steps will give you the best chances of getting the card you really want.
Review Your Credit History
Your credit history is made up of details on different utility accounts, loans and other financial services made out in your name and the go-to guide for credit card application assessors.
Companies like Veda Advantage and Dun & Bradstreet provide free copies for people and it is worthwhile requesting one a few months before you apply for a credit card. Things to look out for include:
- Old joint accounts still in your name
- Unpaid bills; and
- Unknown accounts or incorrect details
Resolving these issues will make your credit history look as clean as possible and increase the chances of a successful application.
Know Your Limits
When it comes to getting a credit card, it is important to work with your situation and upgrade gradually.
Someone with a card like the Suncorp Standard, for example, is more likely to be approved for a gold credit card than they are for more premium rewards card like the Citibank Select.
While there will be some exceptions, setting realistic goals and looking at cards that you think are within reach will make a big difference to the outcome of every application.
Call The Credit Card Provider
Almost every credit card in Australia now has it’s own online application form, but comparing cards and hitting apply straight away is not always the best option.
Instead, it can be good to take the time to call the credit card provider, explain your current credit details, income and financial situation and find out first-hand your chances of getting approved. A good customer service representative will probably even offer to walk you through the application over the phone, so you can get everything done in one go.
No matter what kind of credit card you are looking for, it is important to consider the requirements and your personal situation before going ahead with an application. That way you will increase your chances of success and get the ideal card every time.