How to Apply for a Credit Card Online in 2021: The Best and Complete Guide

How to Apply for a Credit Card Online in 2021: The Best and Complete Guide

By going through this guide, you can easily apply for a credit card that works for you and do it all online.

how to apply for a credit card online

No one can deny how powerful and important credit cards are in today’s world.

Many transactions only accept credit cards today and in fact, some transactions only work with credit cards.

With the pandemic, many transactions are now being done online, and for the most part, most online sellers and merchants accept credit cards as the primary form of payment.

This is why it’s important that you should have one credit card if at least as a back up in case you need it. 

While many will say that credit cards are a double-edged blade that can cause debt, having one as a backup is never a bad idea.

You can, at the very least, use the card as a way to build up your credit history as long as you use it responsibly.

What’s more, it’s so easy to apply for a credit card now that you can even do it online.

And today we’ll explore just that: how to apply for a credit card online and what that will take. 

Two Types of Credit Cards

If you are looking to sign up for a credit card, first you need to understand that there are two types of cards you can get: the secured and unsecured credit card.

What exactly are these? Let me explain so you can learn how to apply for a credit card online.

Secured Credit Cards

Secured credit cards are a specific type of credit card that required a deposit before you can qualify.

The deposit amount can be anything between $200 to $1000.

There are many benefits that come from a secured card. First of all, a secured credit card does not require a credit report inquiry because you are already paid a deposit.

You see, credit report inquiries often come with a deduction of points on your credit score so it’s often a good idea to ensure you avoid those inquiries.

The deposit could also be used to pay off anything outstanding balance on your credit card, if necessary.

This ensures that your payment history is always up to par and that you would not be reported to the credit bureaus with having a bad payment history.

Lastly, secured credit cards can be converted into unsecured ones in the future if you keep a good payment history. 

Your deposit is even returned to you for use with how you want. 

Unsecured Credit Cards

Unsecured credit cards on the other hand are the regular credit card that you’d often encounter.

These credit cards often require that you have a good payment history for you to be approved for a card.

You would need to have at least a good rating in the credit score for credit card companies to give you their approval.

In some cases, there are companies and cards like the Capital One Platinum Credit Card that accept applications with a fair credit rating but not many.

Typically, those with lower scores will get higher and more expensive rates while those with a FICO credit score of good or excellent are usually granted credit cards with much better terms like low interests and maybe waived annual fees. 

Now that you know the kinds of cards, you have to first make sure that you meet the basic requirements in how to apply for a credit card online.

Basic Requirements

how to apply for a credit card online

If you’ve decided to get a credit card, there are four basic requirements that you will need to know how to apply for a credit card online. These include the following:

  • Must be at least 21 years of age or 18 years old if you have a parent’s consent or have a verifiable income
  • Social Security Number
  • Source of Income
  • Good Payment History

Let’s explore each of these, shall we?

Must be at least 21 years of age or 18 years old if you have a parent’s consent or have a verifiable income

Before you can find out how to apply for a credit card online and qualify for that card, you need to reach the age limit.

The older you are, the more it’s assumed that the more you have the capacity to pay any sort of credit card debt.

If you are 18 years old, you can also qualify only if you have a parent’s consent or you have some way to verify you have a regular income you can use to pay for the card.

Social Security Number

Only residents of the United States that have a social security number can be approved for a credit card.

While there may be some credit card companies that will accept a non-US resident, more often than not, they are denied.

This is mainly because there is a higher risk they won’t pay their balance and move out of the country, making it harder for the institution to chase after them.

Source of Income

Most credit card companies will ask you about your income.

Though most companies will not ask specifics of your income, they will want to know how much you are earning annually so that they have a better idea of whether you have the capacity to pay for the card or not.

In some extreme cases, you will be asked for proof of income like a pay stub.

Payment History

Your payment and credit history will often be very important for any credit card application.

While not every company will do a credit score inquiry, you may be subject to one.

Do note that usually those with good or excellent credit score ratings are the ones that do get approved with good terms.

People with poorer ratings may either get approved with higher interest rates or get disapproved altogether.

Knowing how your payment history and credit history will assist you to know how to apply for a credit card online.

How to Apply for a Credit Card

how to apply for a credit card online

Before you actually apply for a card, look for a card that best works for you.

There are different credit cards depending on the rewards program or points that it comes with, low interest rates, and cards that are easy to apply to depending on your credit score.

The great thing about credit card applications nowadays is that it’s just as easy to apply online as it is doing it physically.

What you need to do is simply search online for credit cards and you’ll get a bunch of lists of cards available online.

In most cases, you can enter your details directly online so you don’t have to write down and scan your application form. 

Once you have chosen a card you want, you will need to fill out basic details on the application form.

You will typically be asked to fill in the following information:

  • Full Name
  • Date of Birth
  • Social Security Number
  • Gross Annual Income
  • Home Ownership
  • Length of Time at the Current Residence
  • Authorized Users (if any)
  • Balance Transfer (if any)
  • Signature and Date

All this information is necessary to establish your identity, your capability to pay, and risk assessment of whether or not you can be approved for a credit card.

Once you complete the application form, you just need to wait for the credit card company to assess your application and give their approval.

This can typically take a few days to up to 14 days. You may also be requested to provide documents to confirm the details you entered in your application form.

how to apply for a credit card online

Final Thoughts

Credit cards are important in any one’s finances.

What’s great is that if you don’t have one, it’s pretty easy to find one where you can apply.

By going through this guide, you can easily apply for a credit card that works for you and do it all online.

Before you know it, you’ll have a working credit card to use in just as little as 14 days.

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Author: John Benares

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