Bank Credit Card Applications

Written by Kathleen Gagne
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There are basically two options when it comes to filling out bank credit card applications--online or in hard copy format. Millions of people receive applications in the mail every day including homeowners, college students, persons with at least one credit card, and businesses. It is important to understand exactly what each offer entails and what it will cost you to get the credit you want.

Understanding Credit Card Offers

Most of the applications come with one of two statements explaining your options. The most common statement is that the recipient has been "pre-selected" for the enclosed offer. The second statement is that the recipient has been "pre-approved" for the offer. Generally, there is also a statement that tells the recipient the highest amount of credit it is possible to get with the offer. You should know that "pre-selected" means that you may or may not obtain credit depending on the information you provide on the application and on a subsequent credit report.

"Pre-approved" means that you will be granted credit if you complete the application and request it. It does not, however, mean that you will get as much credit as you would like to get, nor does it mean that the cost of the credit will be acceptable to you. When considering any credit card offer, you must read the disclosures form that is included in the envelope.

Before you fill out bank credit card applications, it is critical to know what the credit will cost you and what the terms of repayment are. All of this information is included in the disclosure statement. This statement is usually in the form of boxes with the ones in the left column explaining what the fees and costs are and the ones in the right hand column showing the fees. A credit card that comes with a $100 origination fee, a $4 monthly fee, and a $72 annual fee is very expensive. Just to get the card would cost you $220! In addition, if you get a lot of offers in the mail, you should carefully compare interest rates.

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