If you are familiar with banking, then you probably know what a credit card is. If you are not, then it is essential to understand what they are in order to apply for a credit card in the future.
Here, at Oxford Funding, we comprehend the importance of knowing the different types of financial tools you can use to improve your future.
Although we mainly specialize in installment loans, it is never bad to explain what credit cards are and how they work.
But there’s a common question that occurs to every person that applies for a credit card: when will my card get approved? Will I have to wait for months? Will you get it within just an hour after the approval?
If you are looking for the answer to any of these questions, then you’ve arrived at the right place.
Oxford Funding will serve as your guide through the realm of our country’s finances. So, let’s get into it.
When you open a new bank account, you will have the possibility to have two different main types of cards: credit and debit.
They both look almost identical, so what is the difference?
First of all, debit cards are just for spending money by drawing on funds from your account. Hence, if you have 500 USD and make a 200 USD purchase with your debit card, now you will have 300 USD in your account. It’s simple math.
In the case of credit cards, you can borrow money from the card issuer to cover your expenses. Of course, there’s a limit when it comes to purchasing items or withdrawing cash.
As you might know, when you borrow funds for any financial institution, you need to pay them back with interest.
There are different types of credit cards depending on the bank that issues them. Nonetheless, standard cards, reward cards, and charge cards are the most common ones out there.
When the time comes to pay your card debt, the bank will directly take the funds from your account.
Typically, the application process for a credit card is pretty simple and straightforward. But as it happens with other types of credits, the person must meet certain requirements before having the card finally approved.
These are some of the most basic requirements for getting a credit card:
- Social Security number: if you don’t have a Social Security number, your chances of getting a credit card are low (this mainly applies to non-citizens).
- Source of income: you can’t pay back debt if you don’t earn enough money. The bank needs to know if the risk of lending you money through a credit card is low enough for them. Your reported income should be good and steady.
- Positive credit history: as it might happen with other types of credits, having a bad credit score jeopardizes your chances of getting a credit card.
If you are suitable for a credit card, complete the application in your favorite bank and wait for the answer. So, how long will it take? We are about to know it.
If you never had a credit card before, it is crucial to understand that they are like an extremely sharp knife: it can be a good tool, but it can also turn into a dangerous weapon.
At the end of the day, everything in life has bad things and good things.
Maybe you are young and your goal is to build a credit history. If this is your objective, then a credit card will perfectly work for you.
Naturally, remember to have a positive history and perform on-time payments. Check your needs in order to understand if you are really capable of maintaining a credit card.
And that might be a big problem for some of us: spending can lead to debt. This doesn’t always happen, but when it happens, it’s terrible for our financial status.
Making at least the minimum monthly payment is a requirement when it comes to having a credit card.
Besides, we don’t always have enough cash to afford something that we really need at a particular moment, so a credit card might be our biggest ally to solve an issue or cover some expenses.
But then again, interest and fees are usually high. Credit cards are essentially a type of short-term loan.
Therefore, be sure to check the rates and fees related to your card to understand how much you will actually end up spending.
Filling out a credit card application is a process full of anticipation and questions through our minds.
At this point, it is important to mention that the approval process is not always linear. You might get approved right away, but this depends on your personal information and the financial institution’s policies.
That being said, if you filled your application correctly, your chances of getting approved faster are higher.
The standard times for getting the approval are between 7 and 10 business days.
If your approval is confirmed, the bank will tell you the credit limit you have approved for. Either way, it will be necessary for you to wait for the card to arrive in the mail.
Therefore, the whole process, from the application to the approval and the credit card delivery, can take between 2 and 4 weeks.
Keep in mind that some factors such as having an excellent credit score or an amazing source of income might accelerate the process.
On the other hand, not having good enough requirements might delay it all. At the end of the day, remember that credit cards are tools to make our life easier, so knowing how to get a credit card approved might be a lifesaver for you in the future.