Applying for a new credit card is usually very easy but you will need to provide some personal information.  You will be asked for your home address, if you own or rent and for how long have you lived there.  Next they will want to know about your income, and you may even need to provide proof of this income in the form of a job letter and/or paystub.  Applying for a credit card is really no different than any other type of loan.  The financial institution will want to ensure you are a good risk and that you can service the debt (make your payments) should they agree to grant you credit.  Your credit bureau will be checked by the lender to ensure you have a good credit score and have no past delinquent or fraudulent credit history.  You will most likely need to fill out a full application and agree to a credit check.  They will also want to know your monetary commitments – so, things like mortgage payments, loan payments, other credit cards, car payments, monthly bills, etc.

If you are applying for credit online, make sure you know the website you are using.  You definitely do not want to divulge your personal information to a website that might be suspect.  Other ways to apply for a credit card could be in person at the financial institution or over the phone.

Christine’s Tip:

Many people think it is beneficial to have multiple credit cards, but this is not true.  The more credit cards you have, even with zero balances, will lower your ability to acquire more credit in the future for the more important things like a car loan or home mortgage.  When a financial institution reviews an application for credit they will pull your credit report and for every credit facility you have (credit cards) they will automatically apply a minimum 3% payment based on the limit regardless of you having a zero balance.  The reason for doing this, is because the bank must mitigate their risk and make the assumption that once they provide you with more credit, you could potentially go out and use all your other credit at the same time.  Every application for credit must fit specific guidelines and debt ratios, so if you have a lot of credit already, even if it is unused, it is likely your application will be adjusted to ensure you are not given too much more.