What are the pre-application checks that banks make when you do a credit card application online?
There are a few pre-application checks that card issuers undertake. They do them to make sure that the person applying for a credit card is going to be a safe risk for them to have as a client. These checks help them determine whether or not someone should even be considered for their card. Once they know that an applicant is eligible they will go further into their data to figure out how much their spending limit and interest rate should be. Those who have better credit histories and higher incomes are likely to get better rates and credit limits, while those with questionable incomes and credit files will get higher interest rates and lower limits. Find out what your credit history looks like.
Credit Card Pre Application Checks
- Identity - The first thing that any credit card issuer will do is verify that person applying for the credit card is actually the name on the credit card application. They do this mostly to protect themselves. If the credit card issuer gives a card to someone who has stolen an identity they will wind up with a bill that no one is going to pay. Credit card identity theft costs card issuers a significant amount of money each year. To avoid this the card issuer will ask for proof of identity, if you are unable to provide this you will not make it through even the pre-application process.
- Income - The income check is done to make certain that the person applying for the credit card is being truthful about how much money they make. The recent credit and financial crisis has been blamed in part, on credit card companies for giving people more credit then they could afford or for not verifying their income. Many card companies are using new technology to help them verify income levels so they know immediately what an applicant makes per year.
- Credit History - Your credit history indicates to the card issuer how good you are at paying bills on time and how much debt you currently carry. They need to know this to determine if you can take on more debt and if you will pay their bill on time.
When you make a formal credit card application, the card issuer will go further into your personal and financial history. They will check on the length of time you have been with your current and previous employers. They may even check to see how often you move and exactly what kind of defaults are on your credit file. This is all done to protect the card company from someone who will not pay their bill. However, you should also consider it a protection for you because it either protects you from owning a card you cannot afford or from having to pay the costs of others who do not pay their bills.
St.George Vertigo credit card
The St.George Vertigo credit card will offer you a low interest rate on purchases, a low rate on balance transfers, and a low on-going annual fee.
- $55 p.a. annual fee
- 1% p.a. for 12 months (reverts to 13.24% p.a.) on purchases
- 0% p.a. for 18 months on balance transfers
- Cash Advance Rate of 21.49% p.a.
- Up to 55 days interest free