An Introduction to Credit Card Eligibility Checkers - HiTricks (2024)

The vitality of credit cards in the modern financial world cannot be emphasized enough. A credit card affords you a revolving line of credit. Each credit card comes with a predetermined credit limit, access to which is predicated on your creditworthiness. In today’s post, we will discuss credit cards, why you should get one, the things you should keep in mind while applying for your first credit card, and how to check if you are eligible for applying for a credit card.

So, let’s get started.

Why get a Credit Card?

People tend to carry out a sizeable chunk of their financial transactions with a credit card for numerous reasons. Here are a few:

• Using a credit card helps build your credit rating
• Using a credit card is much safer than having to carry cash
• You can earn reward points when you make purchases using your credit card
• Sending a request for a refund is hardly an issue if you are unhappy with your product

If you are unsure about your creditworthiness, you can use a credit card eligibility checker to find out.

Things to Keep In Mind before applying for a Credit Card:

Getting a credit card will have an impact on your credit score, so, before you apply for a card, you should keep these points in mind:

Annual Percentage Rate:

The Annual Percentage Rate (APR) is a measure of the overall cost of the card that a user bears.

The APR is a factor often used to compare credit cards. It is assumed that the credit card holder exhausts the entire credit limit on the first day and repays it in monthly payday loans. It also considers the applicable interest rates at the end of the introductory period.

Representative APR:

Most lenders do not always charge the same rates, although advertised otherwise. Multiple banks and other banking institutions generally set the interest rate depending on the borrower’s credit history.

As a borrower, if you have a poor credit history or you are applying for the first time, you may have to be subject to a high-interest rate.

It is critical to verify if the lenders you are approaching are charging more or less the same rates, or your interest rate is particularly high.

Poor credit history can get your credit card request rejected. Your best bet is to know where you stand by using a credit card eligibility checker.

Fees:

As a borrower, you need to factor in the expenses that your bank is going to charge you. Banks typically charge you fees for late payments, returned payments, or if you exceed your credit limit. Keep in mind that the cost is exclusive of APR.

Benefits:

Credit cards generally come with a buffet of perks that include cashback offers, free travel insurance, air miles, and so forth. As high as these benefits sound, they usually come at a price. You need to keep in mind that banks and other lending institutions generally charge you additionally for these benefits.

Monthly Payments:

This is one of the most critical factors for you to consider as a borrower. Knowing how much you will have to end up paying at the end of every month is paramount. A credit card eligibility checker can tell you if you are in a position to pay the required amount every month based on your income and spending pattern.

Provisions for Balance Transfer:

A credit card enables the borrower to transfer the debt of one credit card to another credit card. However, this attracts a fee. Some credit cards offer a 0% balance transfer with a small period during which you can transfer. Other credit cards usually have a 3% transfer fee for a more extended period.

Are you Eligible for a Credit Card?

You can find out whether you are eligible for a credit card or not, with the help of a credit card eligibility checker. However, you ought to meet the following criteria to qualify for one.

• You ought to be 18 years or older at the time of application for a credit card. Some banks and lenders require you to be at least 21 years when you apply for one.
• As a borrower, you must have a savings account in your name.
• You need to be employed and earn a predetermined minimum salary. Your required monthly income may vary with each bank.
• Your credit history is highly instrumental in landing you a credit card. You need to ensure your credit history is above average. Use a credit card eligibility checker to verify your credit history.

Why do you need a Credit Card Eligibility Checker?

Poor credit history will result in the refusal of your credit card application. While you could repeatedly apply for a credit card, every rejection adversely affects your credit score, thereby making it even more difficult to avail of a credit card. A credit card eligibility checker can help you check your credit score before applying without affecting it.

The credit card eligibility checker proves to be an asset for those who are applying for a credit card. It helps determine if they are eligible for a credit card by taking into account the parameters that pertain to the soft credit check of the applicant.

It will allow you to enter your details, such as your UK address history, your annual salary, other sources of income, and your total expenditure. Based on this, the software will tell you how likely you are to be accepted while applying for a credit card.

But well, the results given by the credit card eligibility checker are based on various algorithms; hence they are not entirely accurate. But it can give you a list of realistic credit card choices for which you can get approved.

You can then select the credit card that suits you the best. If your bank approves your application, you can expect to receive it within 5-7 days.

Last Words:

After you get your first credit card, use it wisely. I know a few people personally who are bad at credit management and end up purchasing a lot of unnecessary things. You should try to maintain a good credit score too. It will help you to take more credit cards in the future.

Thank you for reading our post about Credit Card Eligibility Checker. If you have any further queries, do let me know in the comments section below. If you love reading our posts at HiTricks, then do share it with your friends. I will be back again with another exciting update very soon. Keep following HiTricks.