Understanding your evolving needs in a developing world is essential. One such need is the use of credit cards for payments, loans, and shopping. Let’s explore the conditions and procedures for obtaining a credit card.
1. What is a Credit Card?
What is a Credit Card?
A credit card is a payment card issued by a bank that allows you to make purchases and payments even when your account has insufficient funds. In other words, it lets you buy now and pay later.
The bank sets a spending limit based on your financial situation and credit history. You are required to repay the borrowed amount within an agreed timeframe.
There are two types of credit cards:
- Domestic credit cards – Accepted only within the country.
- International credit cards – Accepted both domestically and abroad.
In Vietnam, most credit cards are of the international variety, with only a few banks offering domestic-only credit cards.
2. Credit Card Application Requirements
Credit Card Application Requirements
Not everyone is eligible for a credit card. The following are the essential requirements that you must meet to apply for one:
Stable Income
- This can be demonstrated through monthly income or collateral.
- Usually, applying for a credit card by proving income is called an income-based credit card, while applying with collateral (savings book, deposit certificate, or other documents approved by the bank) is called a secured credit card.
- Most customers prefer the income-based option as it is a more straightforward process.
Residing in a Supported Area
You must reside in an area where credit card services are offered. Vietnamese banks will not issue credit cards to foreigners living in another country.
Creditworthiness
CIC, or Credit Information Center, maintains records of your credit history. If you have previously used credit cards, made installment purchases, or obtained loans from financial institutions or banks, this information is recorded in the CIC system.
Before issuing a credit card, banks will review your credit history. Having a bad credit score of 2 or higher may hinder your chances of obtaining a credit card or any other loan from a bank.
Other Requirements
- You must be at least 18 years old and have a stable income for at least the last three months from a registered employer.
- You must be a Vietnamese citizen or a foreigner residing in Vietnam.
3. Credit Card Application Process
Credit Card Application Process
Vietinbank
- Application form and credit card agreement (standard form)
- Identification documents: ID card, passport, or temporary residence card
- Proof of income
BIDV
- Copy of ID card, permanent residence book (for Vietnamese citizens), passport, or valid visa (for foreigners)
- Proof of income
Vietcombank
- Vietcombank credit card issuance request and agreement
- Two-sided copy of ID card or passport
- Copy of valid visa for foreigners residing in Vietnam
- Proof of income
The information provided above outlines the requirements and procedures for obtaining a credit card. We hope this has given you a better understanding of credit cards and their application process.
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