How To Apply For A Credit Card

Applying for a credit card these days is as simple as entering your information into an online form and clicking “submit.” But getting approved for a credit card requires proactive planning that should start long before you apply.
In most developed economies, usage of credit card is prevalent among bank account owners because of the availability of accurate data, which provides comprehensive information on depositors.
Developed banking and lending system also promotes the usage of credit card among the populace, because it facilitates short term loans to bank depositors.
Presently in Nigeria, virtually every account holder has a debit card because it is easily made available to the customers except the depositor does not want it.
A lot of people are not using the credit card because they are either not conversant with its features or how it can meet their financial exigencies at any time.
This makes the demand for the credit card to be very low.
The low development and usage of credit card makes it to perform less functions in the country compared to the advanced economies.
While the process of getting a debit card is very simple and easy, getting a credit card is not automatic because the banks will scrutinise the request for it and be sure they are giving it to a creditworthy customer.

A major difference between a debit card and a credit card is that the former allows the account owner to spend only what he has in his account with the bank.
The credit card can however give the owner more funds than he possesses in his account, or according to the discretion and approval of his bank.
In short, this card acts like a short term loan to bank depositors.
Customers who have more cash flows in their accounts and better relationship with the banks can easily get a credit card.
It is however important to ask the bank how much you will be charged for using a credit card because if you spend the money on it, you will have to pay a little amount.
To get a credit card, you will be required to apply through your branch.
The bank has the final say on whether to grant your request or refuse it.
Your account officer could also assist to fast-track a credit card for you based on your transaction history with the bank.

The credit card holder can be given between 30 days and 45 days or according to the stipulated period.
If the credit card holder defaults in repaying what he spent before the end of repayment period, he will be charged a certain percentage for the default, which could be between two and four per cent or a fixed charge by the bank.
On the other side, if you are consistent with your spending and prompt repayment of all the funds borrowed, you stand the chance of having more loyalty points.
The bank will be willing to give you more credit on your card and this will avail you the money you need for your exigencies.
While the debit cards of some banks can be used locally and abroad, some Nigerian banks‘ debit cards can only be used locally.
A normal credit card could be used by the owner at the Automated Teller Machine, the Point of Sale machine and for other transactions, both locally and abroad.

August 16, 2016