6 Mistakes To Avoid When Applying For Your First Credit Card Online

6 Mistakes To Avoid When Applying For Your First Credit Card Online

Getting your first credit card is now easier, simpler, and faster, thanks to banks and providers allowing applicants to apply and get the card instantly using digital channels.

All you need is a valid Emirates ID and a smartphone to get started. The stress-free and streamlined process makes it quicker and easier for you to obtain your first credit card, literally in minutes.

Moreover, there are several types of credit cards to choose from, which means you have a higher chance of getting one since you will meet the requirements of at least one product.

Top Online Credit Card Application Pitfalls to Avoid

If you want to have a successful online credit card application in the UAE on your first try, steer clear of these mistakes:

1.     Applying for any credit card you see online

Credit card ads are everywhere on the Internet. Whether you are scrolling through your social media feeds, streaming videos, or simply browsing, you will come across plenty of these advertisements online.

Although all these online ads can be pretty enticing, applying for each product you see is not a good idea. Doing something on impulse is never a smart move.

Before filling up an online application form, keep in mind that not all credit cards are suitable for your lifestyle and needs. You should never apply for a particular product right away without getting all the details and studying your other options.

Take the time to get more details about the card on its page and read reviews about it online. Compare it with similar products as well.

If you think you can’t find a more suitable card, go back to the one that meets your needs and apply for it.

2.     Applying for too many credit cards at once

Another good reason why you should never submit your application for any credit card you come across is that applying for several products at once can affect your credit score.

Every credit card application you submit pulls down your credit score temporarily. This is caused by the different companies inquiring about your credit history within a short amount of time.

If your application is rejected, your credit score will dip further.

To protect your credit score, hold off on applying for a card until you are sure that it is the best one for you.

Also, once you get your first credit card, avoid applying for another one in the next six months. Space out your application to avoid weighing your credit rating down.

3.     Failing to consider your needs and spending habits when choosing a card

If you are overwhelmed by the numerous card options available, the best way to narrow down your choices is to think about your specific needs and spending habits.

Each card comes with its own set of features and benefits, so you have to consider your needs and shop around for the one that meets your needs best.

If you travel frequently, it would be a waste to get a credit card that doesn’t offer great travel rewards, especially when there are many good products in the market.

If you want to build your credit score, look for a secured credit card that can help you get on the right track.

Additionally, don’t forget to consider your spending habits when applying for a credit card.

If you shop at the same supermarket, department stores, or retail stores regularly, find a co-branded card that gives you access to exclusive discounts, cashback, and promotions from your favorite merchants.

If you spend a lot of money on petrol every month, look for a card that offers high rewards on gas spending.

4.     Lying on your application

No matter how much you want to get a credit card, avoid lying about crucial information on your application.

Lying about your income, account balances, and other information regarding your finances can lead to a lot of problems in the long run, including credit card fraud.

Keep in mind that if you do your research right, you won’t need to lie. You can get approved for a credit card if you studied the requirements carefully and made sure you meet them.

If your application for a credit card was denied but you think you should have been approved, reach out to the bank or provider to find out the reason why it was rejected. Ask the representative what you can do to have them reconsider your application and when would be the best time to re-apply.

5.     Applying for a credit card based only on the initial benefits

Some credit card providers entice customers with amazing signup rewards, bonuses, or gifts or no annual fee in the first year. Although these perks are too good to pass up, unfortunately, they are only short-term.

To get the most from your first credit card, think about the benefits you want to get in the long run.

Again, studying the different products carefully can help you narrow down your options. Find out if you can enjoy the benefits offered not only for the first year but also for the succeeding ones.

Also, make sure that you can enjoy the credit card features that you find the most beneficial long-term.

6.     Not reading the terms and conditions of the application form

Finally, the terms and conditions part of the credit card application form is there for a reason. As such, take the time to read and understand all of it before submitting the document.

When you apply for a credit card without understanding all the terms and conditions, you may end up getting one that you will regret having and using.

To ensure you are applying for the right credit card, go over the terms and conditions regarding the introductory and fixed annual percentage rate or APR, annual fees, late payment fees, and grace periods.

Make sure you understand all these provisions and take note of any queries you have regarding the terms. If you have any questions, get in touch with the bank or credit card provider to answer them.

Avoid relying only on advertisements to give you all the information you need about the credit card you are interested in since they are not detailed and comprehensive.

Similar to opening an online bank account in the UAE, you have to make sure you get more instead of less with your first credit card.

Avoid these mistakes to find a credit card that suits your needs and increase your chances of getting it on your first application.

Comments are closed.