How To Get A Credit Card

Summary

This video explains the process of applying for a credit card, including the necessary information required such as your name, address, income, and social security number. It highlights the differences between applying online and in person, including the timeline for approval and receiving your card. The script advises using a secure, private device for applications to avoid identity theft. It also emphasizes the importance of knowing your credit score before applying, as a poor score or lack of credit history can impact approval. Additionally, it explains how credit inquiries can slightly lower your score.

Takeaways

• 😀 You need your full legal name, mailing address, social security number, gross annual income, employment status, housing costs, and phone number to apply for a new credit card.
• 😀 If you apply in person or by phone, a customer service rep will input your data, and the system will decide if you are approved based on your income and credit score.
• 😀 After approval, your new credit card will be mailed to you within one or two weeks.
• 😀 If you are not approved, you will be notified by email or mail, explaining the reason for the denial.
• 😀 When applying online, you'll fill out the application yourself, and the system will give you an instant decision, though it might take a few days to receive confirmation.
• 😀 Always use a private device and a secure internet connection when applying for a credit card to avoid exposure to hackers and scammers.
• 😀 Public devices and Wi-Fi connections (like those in libraries or coffee shops) are not safe for entering personal information.
• 😀 A poor credit score (579 or below on the FICO scale) may result in being denied a credit card.
• 😀 If you have no credit history, you may also face rejection when applying for a credit card.
• 😀 Knowing your credit score beforehand can help you apply for a credit card that you are more likely to be approved for.
• 😀 If you're rebuilding your credit, avoid applying for cards that require a high credit score (800 and above).

Q & A

What personal information is required to apply for a credit card?

To apply for a credit card, you need your full legal name, mailing address, social security number, gross annual income, employment status or income source, housing costs (rent or mortgage), and phone number.

How does the approval process for a credit card work at a physical bank or by phone?

At a physical bank or by phone, you'll speak with a customer service representative who inputs your data into the system. The system then determines your approval based on your income and credit score.

How long does it take to receive a credit card if approved through a physical bank or phone application?

If you're approved, a credit card will be sent to you in the mail within a week or two.

What should you do if you're not approved for a credit card?

If you're not approved, the system will notify you via email or snail mail within a few days, explaining the reason for the denial.

How does the online application process for a credit card differ from applying at a bank?

With an online application, you fill out the form on your own. You usually receive an instant decision, but it may sometimes take a few days for the decision to arrive via email or snail mail.

What security precautions should you take when applying for a credit card online?

You should apply using a private device and a secure internet connection. Avoid using public devices or Wi-Fi networks, such as those in libraries or coffee shops, to protect your personal information from hackers and scammers.

What is the FICO score and how does it impact credit card approval?

The FICO score is a common credit score metric, and a score of 579 or below is considered poor. Your FICO score, along with other factors like your income, helps determine if you'll be approved for a credit card.

Can you be approved for a credit card if you have no credit history?

If you have no credit history, meaning you've never borrowed money before, you may not be approved for a credit card.

How can knowing your credit score before applying help in choosing a credit card?

Knowing your credit score before applying allows you to apply for cards that are more likely to approve you, saving time and effort. For example, if you're rebuilding your credit, applying for cards that require a higher credit score could result in a rejection.

What happens when a bank checks your credit history during the application process?

Every time a bank inquires about your credit history, your credit score is slightly reduced by a few points.