Today, almost everything can be done online.
Need new kicks? Go to Amazon. Want some pizza? Google your local pizzeria’s number. Want to learn about black holes? Complete an online crash course – for free!
You see, the internet has evolved to cater to the dynamics of human life. Fast forward after the invention of the world wide web almost three decades ago, we’ve managed to maximize it into a major human tool for convenience.
While we used to wait for months for mails, now Facebook can deliver your message to another individual halfway across the world in a matter of milliseconds. Now, the whole world can collectively enjoy a real time coverage of the NBA. And what about banks? Well, download that app and you can transfer and deposit funds in your pajamas.
Click to See the Latest Mortgage Rates»
A financial tool
Indeed, one of the most practical benefits of the internet can be seen in the finance industry. It has widely permeated the system from opening an account to getting a loan. One of the most practical examples is applying for a credit card online.
With the help of an online database and an online form readily available to potential borrowers, you can apply for a credit card in as fast as five to ten minutes – all while you’re eating a bowl of cereal.
But convenience is not an all-around bargain. With simplicity comes another set of precautions and obligations that you need to work out first to secure a successful online application.
Here are some tips.
Identify the purpose
Before you enter your information and submit it to a
credit card provider you found online, you should already have a good idea of what you should be using the card for.
Knowing a card’s purpose beforehand lets you set a direction as to how you’re going to use it. While it’s true that a credit card can help you build credit, it can also lead you to more debt if mismanaged, damage your credit score, and limit your access to certain financing programs in the future.
Any determined hacker can intercept user data and sell it. Your best line of defense against identify theft is to secure your information when doing transactions online. Make sure you only visit secure links and see to it that the lender you’re dealing with is legit by thorough research before your application.
What kind of spender are you? Do you frequently use your card for purchases or only resort to it when you fall short of cash? Self-evaluate and use this information to determine if you’d rather have a low or high spending limit. Most lenders look at your credit card usage and get your utilization ratio. This ratio tells the lender how much of your available credit you use and if you have episodes of overspending beyond your set limit. A high utilization ratio is a red flag for many lenders. Experts advise that you should not spend more than 30 percent of your available credit.
Read the fine print
The pre-approved offers aren’t final. Be on the lookout for hidden charges and pay attention to interest.
Document your income properly
Proper documentation is vital in ensuring that your application gets approved. Lenders are very particular with how much and where you get your income since they determine your capability to pay back what you owe. So make sure you account for every bonus, salary, commissions, and tax details, etc.
And don’t forget to review
Before you hit submit, make sure all your information input are correct. Even small mistakes can delay or worse, decline your application. Review all the required fields. If you are uncertain about something, look up the provider’s contact number on the site and call them up to clarify. Some sites even offer round-the-clock chat services to keep you assisted. Don’t hesitate to ask.
Today, we are lucky to have the convenience to accomplish these tasks remotely. But it doesn’t take much to realize that it’s only the platform that changed. At the end of the day, what matters is still our motive and our resourcefulness in achieving financial independence.
Click to See the Latest Mortgage Rates»
Get Your Free Mortgage Loan Quote Today