What Information Do You Need to Open A Credit Card?
In order to apply for a credit card, you will need to know what information you need to open a credit card. You’ll need to provide the card issuer with a few pieces of specific personal and financial information. New features like instant approval make applying for a credit card more straightforward than ever. With that said, gathering the necessary information and preparing for your first credit card application can be daunting.
You need to be at least 18 years of age to apply and display enough creditworthiness for approval of a credit line. If you have a low credit score or no credit history at all, you may need to opt for a secured card or similar option. Continue reading to see everything you need to apply and get approved.
Information Needed to Apply for a Credit Card
Card issuers want a full picture of your financial health in order to deem your creditworthiness. In order to apply you will need to provide the following pieces of basic personal and financial information:
Full Legal Name: The name used should be the same as it shows on government issued documents and certificates.
Birth Date: Your date of birth as listed on your birth certificate.
SSN and/or ITIN: Your SSN is distributed by the Social Security Administration, whereas your ITIN is provided by the Internal Revenue Service (IRS). This information allows credit card companies to check your credit report and estimate credit eligibility.
Your Mailing Address: This is the address where you plan to receive your credit card statements.
Your Gross Annual Income: “Gross” Income is the income you expect to receive before taxes. Credit Card companies use this information to determine whether or not you will be able to pay off your credit card bills and if so at what credit line.
Your Phone Number and/or email address: Most card issuers will ask for contact information like your phone number and email address.
How to Apply for Your First Credit Card
The first thing you should do before choosing and applying for a credit card is check your credit score and report. You can check this information for free at one of the 3 big credit bureaus including Experian, Equifax, and TransUnion. In some cases, you may not have a credit report and will need to take steps to establish credit or opt for a secured credit card.
The next step is to contemplate your credit card needs and search for options that offer a decent chance of approval based on your financial history. It’s often a good idea to check for pre-approval before applying. Most credit card issuers offer this option as a way to check your chances of approval with a soft inquiry that doesn’t hurt your credit.
Once pre-approved, you can make your final decision and apply for the card that’s right for you.
What to Do if Your Credit Card Application is Denied
If a lender denies you credit, they are required to provide reasoning as to why in something called an adverse action letter. They are also supposed to provide instructions for providing a free copy of your credit report. Your adverse action letter will list one or more of the following reasons for denial of credit:
Too Much Debt
Too Many Recent Credit Card Applications
Limited Credit History
Negative Payment Information
Late Payments
You are below the age of 21
When denied, your next best course of action is to take steps toward improving your credit or building a credit history in the first place. You can learn more about improving your credit score here. If you need a credit card right now, you may be able to apply for different options like a secured card to improve your chances at approval. Check out this list of popular cards for those new to credit.
Learn How to Use a Credit Card Responsibly
Credit card companies want to make it as easy as possible for consumers to apply. That’s great news, but signing up for a credit card is an important decision that you shouldn’t take lightly. Using your card incorrectly and falling into credit card debt can negatively impact your financial health for your years.
Once you do have a credit card it’s important to use it responsibly. You can practice healthy credit usage by making payments on time, paying more than the minimum, staying below your credit limit, checking monthly statements for accuracy, and consistently monitoring your credit.
