Knowing your credit card application

Credit cards are fast replacing cash as the currency of choice in today’s busy, often turbulent world. For an executive with a lifestyle built on speed, digging through a wallet for cash can be a waste of time, especially when the single swipe of a credit card can finish a transaction instantly. For a college student low on funds, a credit card can be a saving grace, especially when emergency purchases need to be made. For an employee with average income, a credit card is a chance to buy now and pay later.

Credit card companies, however, are aware that credit cards can be abused, and that credit card scams abound. Someone who claims to be an executive can actually be someone who assumes the names of wealthy people, and who uses their names in making expensive purchases. A college student can sometimes abuse a credit card and use it to buy liquor or drugs, all while the student’s parents think that the card is being used to purchase important materials for school. An employee may get carried away with purchases, as a credit card can conjure the illusion that no money is being paid.

As a result, credit card companies are now stricter when receiving credit card applications. Some credit card companies, moreover, have changed their application questions in order to exercise a greater hold on potential predators or credit card abusers. Although some of the questions that they pose on their applications may seem intrusive, credit card companies are simply making sure that honest applicants are sifted out of the thousands of applications that they receive each year.

Credit card companies ask many questions on your credit card application, some of them with seemingly no bearing on your ability to pay. You may be asked about your father’s or mother’s name, your mother’s maiden name, or the city in which your grandparents were born. The answers to these questions can be known by only a few people, and they can be used if your identity needs to be verified. Do not underestimate these questions, as they may actually save you from being hoodwinked by credit card identity thieves.

Credit card companies may also ask you about previous credit cards that you have held. This is a way for them to verify that you can pay your credit card bills. Do not withhold any information on this matter, as a record of good credit standing can actually work in your favor. You may be given a higher credit limit on the credit card that you are applying to. However, if you have poor credit standing, then your application may be denied, or your credit card will have a much lower credit limit than before. Do not lose hope if this happens, as this may discipline you into saving more, and spending less.

Credit card companies may also ask you to name supplementary card holders. Although this can be advantageous if you are a parent with a child living far away, or a husband willing to finance his wife’s spending, supplementary cards may actually put you in greater danger of identity theft. Supplementary cards will arrive separate from the principal card, and these can be stolen and used. Exercise great caution when considering whether you should purchase supplementary cards.

If you know your credit card application, you will better appreciate the value of your credit card. Be honest on your application, and be scrupulous when your credit card finally arrives. If you continue to be in good credit standing, then you will enjoy the benefits of your credit card for many years to come.