Maybe you will never think about a loan offered at a rate of sixty percent interest. But, the truth is, in the past year, a credit card with a credit card with bad credit rating got applications per day, despite interest rates of up to 60%. So, are they crazy? Why do they want to apply for a credit card? Well, there are four main reasons.
First, the credit card is easy to achieve
A bad credit rating card can easily be achieved by users, while it may be turned down by high-street banks. This is one reason why so many users prefer to apply for a credit card.
Second, the credit card helps those in need
For example, bad credit rating credit cards are aimed at borrowers who have a bad credit history and have been turned down by more well-known firms. The credit card can also help people who are new to credit and may not have a credit history.
Consumers can use a credit card to build their credit rating by making monthly payments and staying within the credit limit. And it’s also true of credit cards that offer 0% rates on purchases. This feature interests people who are short on money at a given time.
Third, the credit card brings a discount
Some banks will give users attractive discounts in order to get more users. They may make contracts with market leaders. For example, the Virgin Money credit card has been at the top of the best-buy tables for over a year with its 0% balance transfer offer. It’s to say that market leaders and banks have made credit cards more popular for months or even years.
Fourth, the credit card companies spent millions on advertising them
In the past year, credit cards have been heavily advertised. Several consumers were attracted by these ads even though they didn’t plan to get a credit card. This spending makes big influence credit cards popular.
How to Fill Out the Credit Application
Filling out a credit application is serious business, and proper care needs to be taken to ensure all details are filled out clearly. The credit application form you fill out will directly affect whether you will get a good financial product. A credit application is usually divided into several sections, and each of these sections is discussed separately. All this section should be carefully considered.
General Tips
- Fill in all fields. The more details, the easier it is to get a credit approval.
- Ensure no fictitious information is provided.
- Make anything clear before filling it out.
- Unless otherwise specified, fill all fields in bold, capital letters.
Personal Information
This section will have the following fields:
- Full name, including first and last names, middle name, or initials.
- Date and place of birth
- Name of father or spouse
- Current residential address with zip code
- Permanent residential address (if different from the current address)
- Telephone numbers (landline and mobile); home fax (if available)
- Personal email address
- Highest educational qualifications
- Number of dependents
- Type of residence and whether it is owned, leased, or rented; (xi) number of years at current residence
- Details of identifying proof (driver’s license, passport, or social security number) and validity where available.
Work Information
This section covers the following information:
- Salaried or self-employed
- Name of the company or business
- Present designation or title
- Full address of the company or business with zip code
- Telephone and fax numbers with extensions, if any
- Official email address, if available
- Number of years at current employment
- Previous employment or business details (if the current employment period is less than two years)
- Declared income
- Industry, segment, or type of business.
Financial Information
This section will usually have the following fields:
- Details of a bank account – type, bank or institution where the account is held, number of years and account number, debit card details
- Details of other financial products such as credit cards, loans, etc. – account numbers, lending institution or bank, expiry dates on credit cards, credit limits or loan amounts, and loan tenure.
While filling out a credit application is often quite simple, you should ensure adequate care and caution are taken in filling out all the details, as discussed here.
