Here's a list of stuff you need to know about your little piece of plastic card that you use everytime you called a "credit card".
A credit card is issued by the financial institution which allows one to make the payment using the card. The payment is made using the borrowed funds which are also known as the credit limit of the card. A person can only spend the assigned and approved credit limit amount on buying things. It is also known as payment card and it is a plastic card which looks like a debit card only.
However, it is different than the debit card and is mostly used for shopping purpose. The financial institutions are responsible for issuing the credit card to the cardholder and to provide them with a pre-approved credit limit from which they can spend money on buying goods and on paying bills on merchant’s website.
But the credit card is issued to the cardholder based on the promise that the cardholder will pay back the spent amount plus the charges like interest within the fixed number of days. There are a few things which you will see on your credit card, that is logo of the bank which issued the credit card, hologram, Card holder’s name, card number, EMV Chip, Card expiration date, Card Network logo, contactless chip, magnetic stripe and signature strip at backside, and card security code at backside.
The credit limit of the credit card is also decided by the financial institution only. But they not just issue any random credit limit to anyone. There is a complete procedure based on which they issue the credit limit. In case, if you do not have any other credit card or have not taken any loan before, then the financial institution decides the credit limit based on your income or salary.
They may ask you to submit your bank statement or salary slip to verify your income. In case, if your income is less than the required income for the credit card, then your credit card application will get rejected. But if your income is higher or equal to the required income, your credit card application will get approved.
Based on that only, they issue a certain credit limit to your credit card. But, if you are already using a credit card or if you have taken a loan before, in that case, the financial institutions will check your credit history and credit score. If your credit history is better and your credit score is higher, there are more chances of getting the high credit limit. In case, if your credit limit is poor, you will not be able to get a credit card approved.
Acquiring a credit card is an easy feat. In some countries promodisers even come to you when you were just passing by an ask if you already have a credit card. But countries like in the USA you'll have to get a good credit score. See here on how to apply for a credit card in the USA.
On some countries its just easy as walking on a mall. Some lady will automatically follow you and ask if you already have a credit card. Just say "nope, I don't have a credit card yet" then they will ask you to fill some papers and if you are qualified then that's it! You'll just have to show some ID's as requirements. Or better yet do it the hard way,
You can contact the financial institutions. You can either contact the bank where you already have a bank account. You can ask them about the credit card if you want one. They will provide you with a form, which you have to fill to get the credit card issued. Ensure that you fill all the details correctly. Also, submit the copy of your required documents along with the form. If the details are not filled correctly or you have not submitted the right documents, your credit card form will get rejected.
Your credit score! If your salary criteria match the credit card eligibility criteria or if your credit score and credit history is better, your credit card application will get approved. You will receive a message regarding it and in a few days, your credit card will be issued to you. But as we mentioned above, that in case if your salary does not match the credit card eligibility criteria or your credit score is poor, the application will be rejected or disapproved.
On some countries you will be required a good standing credit score. See bracket below to get the idea.
You can check this in advance also, by asking the executives in the bank, that how much minimum salary criteria is required or how much credit score is required to get the credit card approved.
Another way to apply for the credit card is online. There you will just have to visit the website of the bank from which you want your credit card.
You can open the section of credit card and can click on apply for applying for the credit card. When applying for a credit card online we suggest you check all the details, so that you do not have to face any problem later on. Once you have successfully submitted your credit card application, you will get a notification after a few days. You will get a mail or text message, stating whether your credit card application is approved or not.
Sometimes, you do not even have to apply online for the credit card, neither you have to submit the credit card form by visiting any bank. The bank’s executive contacts you by their own either by visiting you personally or by calling you or by giving you promotional offers related to credit card at different public places, like malls or shopping complexes, etc. They will get the form filled by you there itself and will collect all the relevant documents from you there only.
There is no fixed day after the application submission that when you will get your credit card. Firstly, you will receive a message regarding the approval of your credit card application. After that only, your credit card processing starts. Some financial institutions provide the credit card within 7 days of the approval. Whereas, some financial institutions or banks may take 10 to 15 days to deliver the credit card at your doorstep.
Credit card is very helpful for all of us. As we make use of credit card for various purposes. We can make use of credit card for paying utility bills, for buying things on EMI, and for the emergency purposes also. We can spend the money up to the credit limit and can pay easily within the stipulated time.
Credit card is also helpful when traveling to foreign countries, for purchasing things or for other uses. Most of the people these days carry a credit card so that they can buy things easily on EMI. As many credit cards offer schemes like zero percent interest rate on EMI.
Here are some facts about the credit card numbers which you all should know.
You should also know that not every credit card is of 16 digits, some of them are of 19 digits also as we mentioned above. There are some which only have 13 digits or 15 digits, and they are also formed using the same pattern. Go here to learn how does credit card numbers are generated
INFO: Credit card number generated are valid but DOES NOT WORK like an actual credit card. They do not have any actual REAL VALUE. They are for data testing and verification purposes only.