How To Apply For A Credit Card

Applying for a credit card can be a daunting process - there is a lot of details to credit card applications and you may experience a vague feeling that you're about to take a plunge into the unknown. However, obtaining a credit card doesn't have to be a scary or negative experience. We can show you how to apply for a credit card and make sure you clearly understand the process.

After all, credit card providers make it very easy to apply for a credit card, and as long as you understand all the terms and conditions, there is no need to worry. Follow these simple steps to make sure you are approved for the credit card you want while avoiding any nasty hidden surprises.

Apply For A Credit Card That Suits You

The first and arguably the most crucial point is picking the right credit card. Many people will choose a card haphazardly, apply for a credit card just to stick with their existing institution or simply look at the lowest rate and no other data. Whatever your reason, if you want the best credit card deals on the market, you have to shop around.

Assess your reasons for getting a credit card. Do you want a card simply for emergencies? If so, you may benefit from looking at no annual fee credit cards. How about a card you will be using all the time for bills and everyday purchases? You may find a gold credit card or rewards credit card with interest free days on purchases offers the best value. The type of card is completely up to you, but make sure you understand the benefits of each credit card clearly.

Once you have decided on the best credit card for your needs, you can then examine the application criteria more closely.

What Do I Need To Complete A Credit Card Application?

Now you have chosen a credit card to suit you, you will need to look at the credit card application criteria. This can differ between financial institutions, but here are a few basic guidelines. Generally, to apply for a credit card in Australia, you will need:

To be 18 years or older
To be an Australian citizen or permanent resident
If you're not a member of the bank already, you will need appropriate identification. This could include a drivers license or proof of address, and you may have to present this in person
Proof of income and employment. This could be requested in the forms of payslips, bank statements and most likely your employer's contact details. If you are self employed, you may have to list your accountant's details
Details of savings, investments and existing debts

There are two good reasons not to lie about this information (apart from any legal implications). Firstly, credit card providers will do a credit check. Any financial records from your past, including bankruptcies and other financially sensitive information is contained in a credit file, which you can obtain for free from mycreditfile.com.au. Don't lie because banks will find out anyway, and it will only make any black marks look worse.

Secondly, banks want to give you a credit card. They will probably look to give you the maximum amount of credit possible, and if your income etc doesn't qualify for a higher limit, it is because you may not have the means to pay off excessive debt. Credit card debt is a problem for many Australians, so don't fall into this trap.

Can I Apply For Credit Cards With A Low Wage?

The lowest wage requirements we have seen for a normal credit card has been $15,000 per annum. However, a student credit card may require an even lower wage than this. Generally, though, $20,000 is the minimum wage required when applying for a credit card.

Of course, it depends on the type of credit card you want to access. Many gold credit cards range from $30,000 to $55,000 and above, and a platinum credit card can be accessible from $50,000 to $100,000 and above. Every credit card provider will be different, so check this information when you find a credit card that you like.

Essential Reading When Applying For A Credit Card

One of the scariest things when applying for a new credit card is the multitude of asterisks, special terms and fine print involved with credit card offers. It's hard to know who is offering an honest deal, and what traps may be involved with particular credit cards. Sometimes, being uninformed causes people to make mistakes simply when using credit cards. Our advice - read the fine print.

You don't have to read the terms and conditions for every card, just the one you are seriously considering. Sure, it can take a little more time than you wanted, but you don't need to be afraid of fine print. The quality institutions should make this information easily accessible to everyone, and that means you shouldn't need a law degree to understand it.

Most all credit card providers have Frequently Asked Questions (FAQ) pages, and if you're still finding yourself frustrated, write down the points you need to know and call the bank directly. If you're not happy with the service or response, cut your losses and go elsewhere. It will be worth it in the long run.

Where To Apply For A Credit Card

You can apply for a credit card in person at the relevant institution, over the phone, by fax or you can even apply for a credit card online (follow the link to find out more about this procedure). The way you choose to apply may come down to convenience, but you may have to visit a credit card provider in person to provide appropriate ID if you have no prior accounts or contact.

Sometimes, filling out an application in person can allow you to speak to a representative face to face and obtain clear answers to any potential questions. It's a good idea to research credit cards before you approach a bank if possible. Then, you can make a list of points you need cleared up, and if you know what you want, you can decide the most appropriate product for yourself.

When applying for a credit card, make sure you take appropriate security measures. Do not leave sensitive information anywhere someone else can access it, and when looking at online credit cards, make sure you are using a trusted and secure site. Most major banks fit this description.

Obviously, don't trust any strange emails, letters or phone calls. Credit card providers will not ask you for this information in this manner. As long as you do your research, a credit card can be a valuable tool that provides great benefits to many aspects of your life.

Further credit card application tips are also available on this website.