Introduction: Credit cards or plastic money, as they are commonly known nowadays, have become a major way of conducting transactions these days. Their popularity and its varied usage have revolutionized the field of business and commerce. The credit card’s popularity is mainly due its flexibility and its reliability to bail out a person from a difficult situation, whenever and wherever required. And what’s more is that it is almost the sole major method of transaction over the internet and e-commerce. The concept of credit card is based on lending people money when they use the card and they have to repay this amount at a later time which is usually monthly along with a nominal interest. This is known as the rate of interest.
Types of Credit Cards and Requirements for applying: There are three major types of cards that are available in the market and they are the platinum card, the gold card and the silver card. The requirements given by the credit card issuing companies are usually simple and straightforward. These companies usually require the credit report of the person, along with a statement of income the person gets per month. The credit statement or report is generated by an external company that specializes in this. These companies analyses the person’s financial situation completely and grade the person’s ability to repay loans on time. This grading is also called as the credit score.
This credit score is also very important while applying for the credit card. It is based on this the type of card that can be issued to a person is decided upon. Another thing to know about is the credit limit, which is the maximum amount the person can borrow using the credit card. The platinum card has the highest credit limit and is usually issued to the person with a very good credit score. The Gold card is given to a person with a lesser credit score which is of average in nature and the credit limit is not too high but of average in value. The Silver card is given to person with the lowest of credit scores and also monthly income. The credit limit is also low and the rate of interest is high compared to the other cards with the platinum card having the lowest of interest rates.
Online Application for Credit Cards: It is not necessary to apply for the credit card in person to the bank. It is enough if the application be submitted online with the credit report attached. Attaching the credit report would make the process of loan sanction faster and this would make the online application for the credit card to be more flexible. The online support provided by the Capital One is really good and has played a major role in the increased reach due to the online application for credit cards from its homepage. The online application for credit cards also has the ability to calculate and intimate the user of what type of card the person is eligible and for how much the person has to pay for the rate of interest.
Conclusion: Hence it is very easy to take decision and fill up the online application for the credit cards using the internet.
