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How To Survive In A Plastic World, Qualifying For Credit Card.
By: Www.creditandyou.com
Let’s face it, having credit is no longer a choice. “Don’t leave home without
it” is more like “can’t buy a home without it.” Your credit now determines the
neighborhood you live in, the kind of car you drive and, sometimes, even whether
or not you get a particular job.
Credit cards are great financial tools and the convenience they provide is
beyond question
They are easier to carry than cash and offer valuable consumer protection under
federal law.
Establishing A Good Credit History
Suppose you haven’t financed a car loan, a computer or some other major
purchase. How do you begin to establish credit?
First, consider applying for a credit card issued by a local store and use it
responsibly. Ask if they report to a credit bureau, most major department stores
do. If they do and if you pay your bills on time you’ll establish a good credit
history.
Second, consider a secured credit card. A secured credit card requires that you
open and maintain a bank account or other asset account at a financial
institution as security for your line of credit. Your line of credit will be a
percentage of your deposit, typically from 50 to 100 percent. Credit card
application and processing fees are not uncommon for secured credit cards. In
addition, secured credit cards usually carry higher interest rates than
traditional no secured credit cards.
What To Do When You Are Denied A Credit Card
If you’re turned down for a credit card, it is important that you ask why. It
may be that you haven’t been at our current address or job long enough, or that
your income doesn’t meet the issuer’s criteria. As you’ll discover, different
credit cards companies have different standards. But, if you are turned down by
several companies, that may indicate that you are not ready for a credit card.
On the other hand, if you’ve been denied a credit card because of information
supplied by a credit bureau, federal law requires the creditor to give you the
name, address and telephone number of the bureau that supplied the information.
If you contact that credit bureau within 60 days of receiving the denial, you
are entitled to a free copy of your report.
It is extremely important that you dispute any inaccuracy with the credit
bureau, but also with the company that furnished the information to the credit
bureau. No one is going to make corrections on your behalf.
“Credi-quette” --The Miss Manners Guide To Proper Credit Card Handling
Once you get a card in the mail, sign it immediately so no one else can use it.
Note that the accompanying papers have important information, such as customer
service telephone numbers in case you have questions or your card is lost or
stolen. File this information in a safe place – one that is easy for you to
access.
Call the card issuer to activate the card. Most cards come with stickers affixed
that give you a telephone number to call. Many issuers require this step to
minimize fraud and to give you additional information.
Keep your account information to yourself. Never give out a credit card number
or expiration date over the phone unless you know who you’re dealing with. A
criminal can use this information to steal money from you, or even assume your
credit identity.
Keep copies of sales slips and compare charges when your bill arrives. Promptly
report in writing any questionable charges to the card issuer.
Don’t lend your card to anyone, even a friend. Your credit privileges and
history are too precious to risk.
Credit Card Land Mines – Watch Your Step!
While a credit card makes it easy to buy something now and pay for it later, you
can lose track of how much you’ve spent by the time the bill arrives if you’re
not careful. And if you don’t pay your bill in full, you’ll probably have to pay
finance charges on the unpaid balance. What’s more if you continue to charge
while carrying an outstanding balance , your debt can snowball.
Before you know it, your minimum payment is only covering the interest. If you
start having trouble repaying the debt, you could tarnish your credit report.
And that can have a sizable impact on your life. When a negative report makes it
more difficult to finance a car or home, get insurance or even get a job, it can
be frustrating, embarrassing and downright painful.
About the Author:
To find out: additional rights you have as a credit card user, how to get your
first credit card, easy steps anyone can take to repair there credit report, the
different types of credit cards accounts, and how to find out if your getting
the best credit card deal visit: http://www.creditandyou.com/creditcards.html
it’s a free information website!
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