Applying for Credit Cards
Posted by Reviewer on 12/27/07 in Finance
Applying for a credit card often times is no different than when you go to open bank accounts (abrir cuentas bancaria). Often times the process can be completed over the phone or by simply filing out a paper application and mailing it. With the Internet also becoming a useful tool, many companies also offer online applications for credit cards (tarjetas de credito).
When applying for a credit card, the credit card company always checks your credit report. Everyone has a credit score based on how many cards an individual has, how many times they have made late payments, as well as if they have ever defaulted on a loan. Credit card companies also take into account existing bank accounts and how they are managed.
Once the company evaluates your credit score, an application is either approved or denied. The customer is then issued an interest rate on the card. This interest rate is determined by the credit score, as well as the individual’s debt to income ratio. The higher the ratio, the more difficult it is to obtain a good interest rate with the credit card. Most companies also offer a free credit card(tarjeta de credito gratis) to customers, meaning that there is no annual fee. This allows companies to be more competitive against one another.
Technorati Tags: open bank accounts, credit cards, free credit card, abrir cuentas bancaria, tarjetas de credito, tarjeta de credito gratis,
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Stephen | Jan 3, 2008 | Reply
An interesting article. Its good to see that comparison sites are not just a UK and US phenomenon!