Applying for a credit card has never been easier. Unless that is your preference, you don’t even have to leave your home to file an application. 

All you need is a computer, internet connectivity and a couple of minutes on your hands.
 

There are effectively three sources you can approach when you want to submit an application for a credit card:

• Credit Card Issuers –South African banks that are licensed to issue credit cards, i.e. Absa.
• Co-branded credit card issuers – Organisations who enter into agreements with the credit card issuers in order to issue their own branded credit cards, i.e. Virgin;
• Credit card brokers – On-line businesses that represent most of the issuers and co-branded issuers, i.e. www.onlinecreditcard.co.za.

Although credit card brokers are newcomers in the South African online financial services scene, they are well established and immensely popular globally. The reasons for their popularity are that these brokers:

• Serve as a single point of entry to many different credit card products;
• Enable you to compare products from different issuers and co-branded issuers;
• Save you time;
• Offer secure online application forms;
• Have good, worthwhile information on their sites; and
• Charge no fee.

Once you have made the decision where to apply for a credit card, you will need to have certain information at hand before you continue.

This will typically include:

• Your ID number
• A salary advice
• A list of all your monthly expenses
• A list of all your outstanding debts
• Your latest credit card statement if you wish to consolidate your credit card debt
• A list of your bank accounts
• Your mortgage statement

Once you have all the information that you are likely to need, access the online application form for the card of your choice and double-check whether you meet the minimum qualification criteria. The reason for this is that if your application is declined, your credit rating will be adversely affected.

Completing the online application form is generally quick and pain-free – simply a matter of filling in the blanks. This is the easy part. The hard part is that before submitting the form, you will be asked to agree to a variety of terms and conditions and to acknowledge that you know exactly what you are letting yourself in for.

Don’t just click and submit. Polish up your reading glasses and read everything – especially the fine print. The devil is always in the detail. Only submit if you are comfortable with what you have read.

Most of the issuers and co-branded issuers will not start processing your information unless you fax supporting documentation to them. One of the very few exceptions is Virgin Money. They will provide you with an immediate in-principle decision, which will be finally confirmed based on the report back from the credit bureaus and the documentation you submit to them.

The documentation you will typically be asked to submit via fax are:

• A copy of your identity document; and
• Proof of income (salary advice or three months bank statements)

Never use the computers at internet cafes when you need to submit a credit card application. Also ensure that you are on the correct site and that the site is secure.

You can check whether the site is secure in one of two ways: Firstly by looking at the address line in the browser window, which should read: https://www.xxx.xx and secondly by looking for a small closed padlock that will either be located to the right of your browser’s address line or in the bottom right hand corner of your screen.

These precautionary measures don’t only apply to online credit card applications. When doing anything online that involves disclosing personal and financial information, always be on guard.