Whenever an applicant is applying for a credit card in an individual bank or in any company the officials conduct a credit card check on the person's details so that they can be sure of issuing a credit card to a right person who can easily pay his dues in time, other wise the credit card issuing company will suffer from a big loss. This credit card check is usually done to check some major parameters like person's capacity to pay of the dues, determine the credit sum, inquiry about any crime record and Inquiry about history regarding previous credit cards.
Inquiry about applicant's capacity to pay
In this case, the bank searches for any kind of mistakes that applicant has done in past, like declaring bankruptcy or not paying the dues on time. If the applicant has a bad record regarding previous issued credit cards then there is problem issuing a credit card again, as there is no surety that the person will not repeat the mistakes again. So the consumer must have a very clear and strong payment related history before applying for the credit card. Issuing company also checks that whether the applicant is financially strong to pay his bills and dues on time and on this basis they apply certain limits regarding the use of credit card.
Inquiry about credit history
Bank or company which issues a credit card checks thoroughly that whether the applicant has paid the dues and all the other bills on time or not. If the applicant has missed the payments in a successive progression then the consumer must understand that the bank won't issue a credit card to person with a bad impression.
If any applicant is having a clear history regarding the payment of bills and dues then bank keeps a very strict rule of clearing dues on time. If any person is not paying after 2 or 3 notices then the applicant is not at all eligible for credit card.
Deciding the credit amount
Credit card issuing bank decides the credit limit according to the person's income and his good credit history. If the applicant is having a good income then bank is not having ant problem in issuing high credit limit. But for applicants having a bad and low income will not get high credit limits as bank doesn't wants to bear a loss.
Applicants will have to be very clear and sharp while applying a credit card as they can't fool the bank very easily.