What is credit card verification? Explanation of screening criteria, points for passing, and flow of issuance
Credit card issuance is subject to verification. Screening is an important process for judging a person's ability to pay, and there is no credit card without screening.
In the credit card examination, all information such as annual income, family composition, loan contract status, etc. is checked. In order to smoothly pass the examination and issue a credit card, it is important to first understand the flow of the examination and the factors that prevent it from passing the examination.
Information Checked During Credit Card Verification
Credit card screening primarily determines whether the cardholder meets the criteria for membership and whether the cardholder has the ability to use the card correctly. Although the criteria for screening and the viewpoints to be emphasized differ depending on the card company, there is no card without screening. There are two main things to look for when reviewing a credit card.
Attribute information
Credit information
Attribute information
Attribute information refers to personal or family information such as "family composition" and "workplace". Attribute information is important information for inferring the applicant's ability to pay. Specifically, the following content corresponds to the attribute information.
- Family structure
- Housing situation (rental/owned)
- Residence years
- workplace
- Length of service
- Company size
- Employment status
- annual income
Depending on the status of the screening process, a phone call may be made to confirm whether you are working at the company you declared. If the phone is connected to the applicant himself/herself, the contents of the application will be confirmed. However, if someone other than the person answers the phone or is absent, the business will not be touched, so the employer will not be informed about the confirmation of enrollment.
Credit information
Credit information is information that represents past and present transaction facts related to contracts and applications for credit cards and loans. Credit information is used by credit card companies as important information for judging a customer's creditworthiness and ability to pay.
Personal credit information is strictly managed by credit reference agencies. If you want to check your credit information when applying for a credit card, you can ask the credit information agency to disclose your information (*A service fee will be charged).
Reasons why it is difficult to pass the credit card examination
If any of the following apply to you, you may not be able to pass the credit card screening.
- have made late payments
- borrowing by cash advance
- Applying to multiple credit card companies in a short period of time
- False declaration or input error
have made late payments
If you have a history of late payments on credit cards or loans in the past, or if you are currently in arrears, it is highly likely that your credit card will not be approved. If there is information such as late payment in the credit history, the examination will be disadvantageous.
borrowing by cash advance
Cash advance borrowing and repayment status also affect the credit card review. If you have a large amount of debt, there is a high possibility that the credit card company will doubt your repayment ability, saying that you may not have enough cash to pay it back. If you are currently borrowing, you need to make it easier to pass the examination, such as repaying it first and then applying for a credit card.
Applying to multiple credit card companies in a short period of time
If you apply for multiple credit cards in a short period of time, it may be difficult to pass the screening process.
During the credit card review, we also check the status of other credit card applications. Therefore, if there are multiple application histories, it will be taken as "I am having trouble with money", and repayment ability will be doubted. As a result, it may adversely affect the examination, so even if you want a credit card quickly, avoid applying to multiple companies. If you want more than one credit card, wait about a month before applying for each card.
False declaration or input error
If you want to pass the examination and enter false information about your annual income or place of work, or if you accidentally make a mistake, there is a high possibility that you will not be able to pass the examination. Failure to submit correct information, whether intentionally or negligently, will affect the examination.
A common mistake is "the difference between the input contents and the address and name written on the identity verification document". If you have recently moved, be sure to check that the information you enter when applying matches the information on the identity verification documents you send.
Credit card verification difficulty
Credit card companies do not disclose the screening criteria or difficulty level, but it is said that the screening has the following characteristics and tendencies.
The higher the grade of the card, the stricter the examination.
Screening criteria and degree of difficulty differ for each card company
The credit card that can be issued on the same day is not always lenient.
The higher the grade of the card, the stricter the examination.
Credit card grades include general cards, gold cards, platinum cards, and black cards. In general, the higher the credit card grade, the stricter the screening criteria.
The reason for this is that the credit limit of the card increases. In reality, standard cards have a limit of $100,000 to $1,000,000, but gold cards often have a limit of $1,000,000 to $3,000,000. In order to get a large credit line, you need high repayment ability and credit.
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