It is very easy to swipe a credit card and enjoy shopping, but initiation into credit cards is a tough process. The process to apply for credit cards begins by completing certain formalities after which one can get the credit card in his own name. The process of selection is incorporated into the credit card issuance methodology to eliminate non-serious users or the users who are not fit enough to hold a credit card. The process to apply for credit cards begins by finding out the credit worthiness.
By credit worthiness, it is meant whether one would be in a position to pay the bills outstanding on the credit card. In fact the process to apply for credit card is like an interview of the probable user. The higher the credit limit, more widely the chance of the credit card user to pay the outstanding with promptness. Therefore, the first hurdle that has to be cleared when one has applied for credit card is to be credit worthy. It is found out through the bank details that are fulfilled. If one is able to clear most of the outstanding bills within a month most of the times, then the probability of getting it after one has applied for credit card is the maximum.
If the potential subscriber has a history of default of any kind in the past, then even after you apply for credit card, it can be denied to him. Another important criteria being looked when you apply for credit card, is the credit capacity. This is calculated based on the income and the loan obligations you have and if the installment of the loans are paid on time, then your application gets a highest rating by the card issuing agency. If it is found after you apply for credit card, that he has the history of default in payment, then the credit card may not be issued at all.
Character is another major deciding criterion looked for by the card issuing agencies after you apply for credit card. The card issuing agency wants to know whether the day-to-day dealings of the individual are honest and straight-forward. This is found out after you apply for credit card, and then the issuing agency makes its decision in this regard by seeking reference from the known persons. The information is also obtained from the financial transactions, as also through payment receipts of utility bills.
At times references from employers are also sought after one has applied for the credit card. Therefore, the copy of the pay slip forms an important deciding document when you apply for credit card. Another criteria used, when you apply for credit card is the identity proof in the form of a social security number or the I-card issued by the employer. The social security number can provide all the details required that may decide whether the credit card can be issued or not. Life style is another criterion that is researched in detail before when you apply for credit card. This is done to find out whether the potential user is a heavy user of the consumable items, and if that being so, then he is issued the credit card at the first instance.
The physical assets an individual possess either movable or immovable also are deciding factors in issuance of the credit card, after you apply for credit card. The reason is that it reflects a certain pattern of life style that is followed by the individual.