Avoid these Big Credit Card Application Mistakes

Not everything is as easy as it seems. You may have heard people using this adage for plenty of tasks, but this saying especially holds true when it comes to obtaining a credit card.

The process of applying for a card is easy enough. All you need to do is fill out an online form and press the send button. However, being approved for the piece of plastic is not that simple.

Most people end up making a lot of mistakes due to which their application is either rejected or denied. For your benefit, we’ve compiled a list of common errors that most applicants make, and what you can do to avoid them.

Mistake #1: Applying for the first offer you come across

In most cases, when a consumer sees an attractive commercial for a credit card or receives a pre-approved offer in the mail, he immediately jumps at it. He fails to consider that better cards may be available if only he would make the effort to look for them. In reality, the market offers so many choices that if you shop around, you’re sure to find a better deal. By using various online tools, you can evaluate different cards on the basis of features like fees, card type, rewards program, ratings and network. The goal is to not only compare cards offered by various issuers, but also weigh different cards offered by the same company to zero in on that one card which has the terms and conditions that suit you best.

Mistake #2: Not reading the fine print

All credit card issuers are required to indicate cost information, such as interest rate and fees, to the cardholder. Always read the terms and conditions carefully instead of simply relying on the information provided in the advertisement. This way you’ll not only know what to expect from your card; you’ll also understand how easy or difficult it is to apply for a specific card. Thus you’ll save yourself the trouble of applying for a card which you may not qualify for in the first place.

Mistake #3: Considering the initial benefits only

Many cards offer wonderful terms during the first year, such as a 0% introductory rate, no annual fees, and a great sign-up bonus, to attract customers. However, they retract all these benefits in the second year, making some cards extremely costly to use. Make sure you choose a card based not only on the initial benefits, but on the long-term ones as well.

Mistake #4: Lying on the application form

While applying for a card, you may be asked to provide information such as your income, account balances and even monthly expenses. Many individuals are tempted to lie by providing incorrect details in order to get approved or obtain a higher credit limit. This is a mistake as such an act is considered fraud and could even land you behind bars.

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