Online credit cards: easy and fast solutions.

Do you still think that applying for a credit card in your local bank is like embarking on an obstacle course? If so, it might be interesting for you to take a look at the advantages offered by the cards that are requested exclusively online.

Less paperwork, much more agile procedures and similar benefits: that is why online credit cards are an option whose demand grows day by day. Do you want to know how to apply for a credit card online?

How to apply for a credit card online?

Before, the usual (and only) way to apply for a credit card was to go in person to your local bank office and open a bank account with a card attached to it. From there, a tedious process of presentation and verification of data began. All necessary, yes, to ensure the solvency of the applicant, but, eternal if you wanted to have your card soon to start operating with it.

All of that has changed radically in recent years. Applying a credit card is much easier since financial institutions have seen the advantages of launching plastic cards that can be requested exclusively online.

Simplified procedures, intuitive forms, simple tools to attach documentation and a considerable reduction in terms: four reasons that explain the growing popularity of online credit cards.

Online vs. traditional credit cards

Yes, of course: it is a credit card like others that you could previously request in person at your bank and that took weeks to manage.

Like the unsolicited credit cards online, they are a product through which the bank advances the liquidity you need at a given time. Thus, it is not necessary that you have cash in the account at the time of making a purchase: the bank gives you a credit.

Its main utility is to allow you to finance your purchases by deferring payments in the way that is the easiest for you and previously agree with the bank under certain conditions and fees. You can set a date for the bank to pass the full charge (for example, at the beginning or at the end of the month) or you can set up installments.

Obviously paying with such a card is like taking a loan, that is, a service offered by the bank. Normally if you pay the full amount of your loan on the established date you will not have to pay any extra charges, but if you finance your purchase you will have to pay some interest.

It is important that you know exactly what interests the issuing entity will charge you, according to the payment installment you set. For that pay special attention to specifications listed in your card contract. This way you will be sure of making responsible use of your money and avoid over spending.

In summary: the function of online credit cards is similar to other credit cards, saving the small differences that have to do with the conditions imposed by each financial entity. But in general, the operation is the same.

Online credit card points of difference

The main difference between online and traditional credit cards lies in the ease of performing the paperwork while applying for it. It is not necessary for you to go personally to the bank office, but you can do everything through a device connected to the Internet, be it your PC, tablet or smartphone.

Financial institutions have made an effort to make management easy and intuitive. During the online application process you will be offered a form to complete with personal and financial data (not because they are simplified procedures the bank stops doing its own feasibility and risk analysis), but the valuations are carried out in a very agile way.

And if you have to provide any documents, the bank officers will provide you with simple solutions, such as scanning and attaching it to the email or taking a picture that you simply have to upload to the web (for example, a picture of your identity document).

Once you have completed this step and presented all required data, personal and financial, the application gets registered in the system. Normally, in a few days you will receive the card at the address you have indicated, ready to activate and start using it.

Characteristics of online credit cards

The variety of online credit cards that one can find on Internet is quite wide. However, don't just apply for the first one you see. We always recommend our clients to compare them based on the following characteristics. 

Commissions

Depending on the card you choose, you may be charged commissions for issuance, renewal, or both. Some financial entities offer credit cards for free during the first year or if the client meets certain requirements. Commissions are very important but don't forget to analyze other characteristics.

Interest rates

It is essential that you know what you embark on when you decide to finance your purchase and pay back in quotes. Decide which card offers you the best APR (Annual Equivalent Rate) and go from there. It is the concept that will give you the reference of the real cost of your loan. The lower the APR figure, the less interest you will have to pay for deferring the payment of your purchases.

Additional free services

To compete in the market, often financial institutions offer additional free services to their core services in order to attract the client. 

• Discounts: The entities establish agreements with other services, such as gas stations for example. Using the card you can get some discounts on other products and services.
• Return on purchase: A percentage of what you have spent on purchases will be returned to your bank account.
• Free insurance: You should take them into account. You never know when you may need them.
• Free financing: Some entities offer three, six or even twelve months to financing your purchase without interests.

With these clues we are sure that you can request the online credit card that best suits your needs. Get it in a few days and enjoy its advantages!