How to Get Credit Card: What are the Approval Requirements?
How To Get Credit Card
First of all, you must be over 18 to get a credit card. Apart from that, you need a proof of your independent income to show that you can or you will repay the amount of charge.
Because of the laws in the United States, you need to have a credit history first. Without it, you can’t obtain a credit card. As you can see, obtaining a credit card is complicated. So reading this article will help you to learn the credit card process.
Conditions of Credit Card
As I told you before, you need to have a credit history in order to get a credit card if you are living or planning to live in the United States. So what is credit history? It is a kind of list that shows how well you paid your credits from the past. If you don’t have one, you can go to any bank and get a security card.
Think as a security card is a ladder to get a credit card. After having a security card you need to use it at least six months to show your trustworthy to the bank that you pay your debt. Security card is some kind of debit card, imaginary credit card. Thanks to a debit card, you can understand the credit card process and it helps you become self-aware about using a credit card.
After using security card at least six months you can apply for a credit card. Bank officer will check your credit history and you will get a credit card if you paid your payments regularly.
Selecting The Bank, Which One Is Best For You?
After explaining getting the credit card, now it’s time to select what is the best bank for you. You should select the bank which you are getting a credit card from based on your requirement. Selecting the optimal bank depends on which state are you living in. Every state has a specific bank that prominent and widespread.
So you should analyze and look around which bank is best for you. To give a general recommendation, selecting a bank which has the most branch and the most common might be best for you.
Bank of America, Chase Bank, Citi, and Wells Fargo are one of the largest banks in America. If you are a student in the United States, you can visit the websites of the banks and benefit from the advantages of each bank because they have special offers for students. You can go to students affairs of your educational institution and ask them about banks that have special offers for the students.
Things You Should Pay Attention About Bank Accounts
There are two types of bank accounts in and you can have both types of bank accounts at the same time. These types are Checking and Saving.
Checking is a deposit account that you can use to access your money in the bank from your selected ATM or bank branch, and also to pay for your purchases.Besides, Checking accounts also vary between banks.
Some limit the number of transactions you can make with a debit card to your checking account in one month, while others do not. Those which have a limit can get a deduction from your account if the transaction limit exceeded. Therefore, you should ask this situation when opening a bank account.
Savings is a bank account where you can save money. The advantage of the Savings account is useful for newbies in America in creating a Credit History. In both the US and Canada, your credit score is considered when buying a car, renting a house, and so on. The best way to create credit score is to make purchases with your credit cards and pay credit card debts on time, open a savings account and add a certain amount of money to each month, and make a credit on time.
Even if you don’t do anything on a yearly basis, if you make all your payments on time, your credit history and score will be self-generated. Unpaid or late payments lower your credit score.
Credit Card Usage and Extra Fees
There are additional costs that you may encounter with your American bank account or credit card during your process. During your credit card process, you may incur additional charges for any transactions you make from ATMs or for transactions you make through online banking and mobile phone. Apart from that, not all credit cards have an annual fee.
You can expect an annual fee on most secured credit cards, charge cards, and subprime credit cards. The amount of the annual fee varies from bank to bank. It can be as low as $19 or as high as $500, depending on the credit card and bank.
What documents i need to get credit card?
We listed what you need to get credit card;
1- Documents Required By Resident Customers For Credit Card Process
2- Identity proof: It can be a Pan card, Driving License, Voter ID card, or Passport. These are all good.
3- Address Proof: Telephone or electricity bill (not more than 2 months old), Bank statement, Rent agreement, Voter ID card, Ration card, Passport, Driving License is needed.
4- Income proof: As we mentioned before, you need to have an income proof to get a credit card. In case of salaried Individual- Last 3 months salary slips, 6 months bank statement for salary account
5- In the case of self-employed businessmen/professionals- Latest IT returns with the computation of income or certified financial documents, Proof of business continuity
6- Age Proof: Secondary School Certificate (class X), Birth certificate, Passport, Voter ID card
Best Credit Cards
According to latest data, we will give you three best credit cards. Besides, this credit cards have specific advantages. Also, you can select based on your desire.
Chase Sapphire Preferred® Card gives 2X points on travel and dining at restaurants worldwide and 1 point per dollar spent on all other purchases. If you are traveling a lot, this credit card might be best for you.
Also it has a $95 annual fee. It has won a trophy named “Best Credit Card for Flexible Travel Redemption” – Kiplinger’s Personal Finance, June 2018
Capital One® Quicksilver® Cash Rewards Credit Card gives unlimited 1.5% cash back on every purchase, every day.
This card is good specifically because it gives a 1.5% bonus, others give %1. It means your everyday spending on such items as gas and groceries get the same treatment as bigger purchases like buying a car.
Discover it® Cash Back provides to Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
If you are traveling in a city and try to different stores as many as possible this card is best for you. People who frequently shop at different places may get so much advantage from this credit card.