Apply for a credit card: how long does it take and how does it work?

If you want to apply for a credit card, you should inform yourself in advance about how the procedure works, which documents are required and what needs to be considered. Only then will the chances increase that the application will run smoothly. http://aisineurope.com/bad-credit-small-business-loans-more-info-for-business-funding-with-bad-credit/ has more details

Successful application through clean Credit bureau and creditworthiness 

Successful application through clean Credit bureau and creditworthiness 

Credit cards are becoming more and more important. Because more and more consumers want to enjoy financial flexibility. However, there are a few things to consider when applying. In addition, applicants must meet certain requirements to receive the coveted plastic card.

A credit card basically provides a certain, previously defined credit line. This can range up to 10,000 USD. But before the limit of availability can be granted, the providers must adequately secure themselves. The best known and most effective means is the Credit bureau information. Applicants must always have positive Credit bureau information in order to receive a “real” credit card. Registered debts, regardless of how high, make it difficult to obtain the card.

In addition to being debt-free, you must also have a positive credit rating. It should be mentioned that the credit rating should not be confused with the Credit bureau information . In contrast to the Credit bureau information, the credit rating does not provide any information about the payment behavior, but only about the income situation. The higher the monthly income and the available assets, the better the credit rating. A negative credit rating, such as unemployment or a mini-job, usually leads to the application being rejected. Further requirements for a successful credit card application are a minimum age of 18 and permanent residence in the country of the issuing credit institution.

An overview of the requirements:

  • positive Credit bureau information
  • positive creditworthiness (regulated income situation)
  • Minimum age 18 years
  • permanent residence in the country of the issuing credit institution

Required documents for the credit card application

Required documents for the credit card application

You can apply for a credit card both in a bank branch and on the Internet. The easiest and fastest way is the internet. The application can be made easily on the website of the selected bank.

However, it should be borne in mind that various documents must be submitted for the application. Ideally, this should be done by post together with the application form. The necessary documents include a copy of the ID card from both sides. Furthermore, it may be that a copy of the employment contract and the latest bank statements, a copy of the rental agreement and all other regular expenditure invoices (electricity, gas, heating costs) and the Good lenderity coupon filled out by the postal worker may be requested.

Overview of required documents:

  • Copy of identity card (both sides)
  • Copy of employment contract
  • Copy of the latest bank statements
  • Proof of assets
  • Copy of the rental agreement and other relevant expenditure invoices (electricity, etc.)
  • Post Ident Coupon filled in by the postal employee

5 steps to a credit card – how it works:

  1. Complete the application documents provided on the website of the selected bank and then print them out. Don’t forget to also print out the Good lender Coupon provided.
  2. Check the printed application documents for completeness and accuracy, then sign and merge the required documents.
  3. Copy necessary documents such as identity card, employment contract and others and put them in an envelope together with the application form. But don’t stick it on yet, because the Good lender-Coupon has to be filled out.
  4. Go to the nearest post office with all the documents, ID card and Good lender coupon and ask the postal worker to fill in the Good lender coupon. The identity card must be presented for this. The Good lender procedure applies to verification.
  5. After the Good lenderification process has been completed (takes a maximum of 5 minutes), pack the coupon in the envelope, seal it and send it off.

Basically, nothing more needs to be done. After the application and documents have been sent in and received by the selected bank, all documents are checked for plausibility. There is Credit bureau information and a risk assessment based on the monthly income. Based on this, an acceptance or rejection takes place.
In the event of a commitment, a decision will also be made on how high the credit line for the credit card is. The decisive factor here is usually the applicant’s creditworthiness. A better credit rating automatically enables higher credit lines.

As a rule, the entire application , including processing, takes barely more than a week . It should be taken into account that the credit card will also be produced after approval.

First of all: compare conditions and costs

First of all: compare conditions and costs

Similar to an installment loan, there are different criteria to consider with a credit card. Above all, the conditions. It is always advisable to compare the different offers in advance. In doing so, special attention should be paid to the accruing interest, which should be as low as possible.
The payment modalities must also be clearly regulated. Can a credit line drawn be repaid in monthly installments or must the repayment be made immediately the following month? The annual card fees incurred should also be compared. The possible additional services, such as second cards, online banking or the like, can also be very interesting.