How to Fill Out a Credit Application
Review the credit agreement before completing or signing the application., Provide your personal information., Give your employment history., Provide your financial information., Submit the form and authorization to a financial institution., Wait...
Step-by-Step Guide
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Step 1: Review the credit agreement before completing or signing the application.
The credit agreement is usually found in the last section of the application.
It outlines the terms and conditions to the consumer as required by the Federal Law Consumer Disclosure Act and explains the binding agreement between you and the issuer.
Pay attention to the APR (annual percentage rate) and the late charge penalties (i.e. the amount you pay if you make a late payment).
If you are unsure about any of the terms or have any questions, contact the card issuer before you start filling out the application. -
Step 2: Provide your personal information.
The application will ask you for your personal information.
The issuer is looking to see if you have a stable residence, and if you are who you say you are.
Information that you will typically provide includes:
Name
- Last, first, middle, surname, maiden name.
Address including city, state, and zip code Phone numbers
- Primary and secondary numbers.
The length of time you have lived at your current residence Previous address and the length of time you lived there.
Email address
- Sometimes optional, but most financial institutions are going paperless and will insist.
Your Social Security number is mandatory to secure credit.
The number will be used for identification purposes and to obtain credit history. , If you are currently unemployed, your application will probably not be approved.
A solid employment history demonstrates that you are responsible and have the ability to make payments.
The longer you have been at the same job, the better.
The application will ask for the:
Name of your employer Your position Length of employment
- Start date and end date.
The type of business
- Education, financial, food service, etc.
Address and phone number of business You may have to provide information for your last few employers , Your financial information is one of the most important parts of your application.
The issuer wants to know if you are financially stable and the percentage of your income that you spend on housing.
It looks more favorable if you have a higher income, own a home instead of rent, and have multiple bank accounts.
Typical information includes:
Annual income
- Household.
Bank information
- Checking, savings, money market or IRA.
Residence
- Do you rent or own? Monthly rent or mortgage payments. , Review the application and correct any errors or omissions.
Sign and date your application, stating the information you gave is correct.
Send it in online or mail in the application., The three outcomes for your application are accepted, referred, or declined.
If everything checks out, your application will be accepted and you will receive your credit card within 2 weeks.
If your application is referred, the issuer needs more information before a decision can be made and will likely contact you.If your application has been declined, read the rejection letter to determine the reason.
Common reasons for rejection are:
You made a mistake on your application.
There is a problem with your work history or financial information.
If you have changed jobs recently or are unemployed, your application may be denied.
Consider reapplying when your income increases, or you have been employed for 6 months.
There is a problem with your credit report.
If you have credit problems such as low credit score, late payments, error on your credit report, or multiple inquiries into your credit, you may be denied. -
Step 3: Give your employment history.
-
Step 4: Provide your financial information.
-
Step 5: Submit the form and authorization to a financial institution.
-
Step 6: Wait for an answer.
Detailed Guide
The credit agreement is usually found in the last section of the application.
It outlines the terms and conditions to the consumer as required by the Federal Law Consumer Disclosure Act and explains the binding agreement between you and the issuer.
Pay attention to the APR (annual percentage rate) and the late charge penalties (i.e. the amount you pay if you make a late payment).
If you are unsure about any of the terms or have any questions, contact the card issuer before you start filling out the application.
The application will ask you for your personal information.
The issuer is looking to see if you have a stable residence, and if you are who you say you are.
Information that you will typically provide includes:
Name
- Last, first, middle, surname, maiden name.
Address including city, state, and zip code Phone numbers
- Primary and secondary numbers.
The length of time you have lived at your current residence Previous address and the length of time you lived there.
Email address
- Sometimes optional, but most financial institutions are going paperless and will insist.
Your Social Security number is mandatory to secure credit.
The number will be used for identification purposes and to obtain credit history. , If you are currently unemployed, your application will probably not be approved.
A solid employment history demonstrates that you are responsible and have the ability to make payments.
The longer you have been at the same job, the better.
The application will ask for the:
Name of your employer Your position Length of employment
- Start date and end date.
The type of business
- Education, financial, food service, etc.
Address and phone number of business You may have to provide information for your last few employers , Your financial information is one of the most important parts of your application.
The issuer wants to know if you are financially stable and the percentage of your income that you spend on housing.
It looks more favorable if you have a higher income, own a home instead of rent, and have multiple bank accounts.
Typical information includes:
Annual income
- Household.
Bank information
- Checking, savings, money market or IRA.
Residence
- Do you rent or own? Monthly rent or mortgage payments. , Review the application and correct any errors or omissions.
Sign and date your application, stating the information you gave is correct.
Send it in online or mail in the application., The three outcomes for your application are accepted, referred, or declined.
If everything checks out, your application will be accepted and you will receive your credit card within 2 weeks.
If your application is referred, the issuer needs more information before a decision can be made and will likely contact you.If your application has been declined, read the rejection letter to determine the reason.
Common reasons for rejection are:
You made a mistake on your application.
There is a problem with your work history or financial information.
If you have changed jobs recently or are unemployed, your application may be denied.
Consider reapplying when your income increases, or you have been employed for 6 months.
There is a problem with your credit report.
If you have credit problems such as low credit score, late payments, error on your credit report, or multiple inquiries into your credit, you may be denied.
About the Author
Brian Freeman
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