At the Speed of Plastic
The first swipe. You just received your fresh new credit card, and you are ready to use it. Anticipation welling up inside of you like a geyser imagining the things you will purchase. You are already thinking about that second credit card. But, did you know it could take a long time for you to get the card processed?
First, let's take a look at the processing stage of the application. This will give us an insight into why it takes a while for you to receive your next credit card.
The first stage in the processing of a new credit card is an analysis by the bank of prior accounts with other companies. At this point the bank will take an in-depth look at the other accounts along with their personal records. They will judge the length of time it took for you to receive the prior card (s). This is a method the bank uses in estimating your actual worth. Most people do not realize that the bank actually categorizes the applicants into subgroups. These subgroups allow them to estimate the risk involved in dealing with the consumer (whether you are a good payer, or a poor one).
If the applicant is found to be a poor payer during the processing stage, the bank usually requires the applicable to supply them an alternate address where the bills can be sent. This is a method the bank uses to ensure that you pay on time.
The Second Stage – Unpaid And Delinquent Balances
The next stage of the process involves the bank researching to see if you have any unpaid balances or other credit cards processed with other banks. This is to check how many cards you are able to apply for and if you will be able to meet their payments (the bank) once you have passed the processing stage. This is known as a method of counter-checking to see if you have the ability to pay for multiple cards (insuring them receive their payments).
Due to changes in the global marketplace, and the US Patriot Act your identity will have to be verified. This is the last part of the process (and a very important one). Each bank has certain standards and requirements set in place requiring certain documentation to prove your identity. The key here is to be patient and understanding. The banks and financial institutions are under a certain level of scrutiny when it comes to financial transactions, and the issuing of a credit card is no different. Supply the information and keep a positive mental attitude during the process.
In conclusion, there are a few things that occurs during the processing of a new credit card request. To summarize, a bank will research prior accounts, check and see if there are any unpaid or delinquent balances (with other institutions), and will need to verify your identity. Once you cross this barrier, you will be well on your way to a new credit card.