I Want A Credit Card - Or Do I?
"I want a credit card". I've lost count of the number of times I've heard someone utter those words over the last couple of years since the property market collapse kicked in. It seems that everyone is feeling the pinch and imagine that having a credit card or should I say having another credit card will solve the crisis. Well owning another credit card will help with the cash flow certainly, but if not used extremely carefully it can turn a bad situation into a nightmare.
Using cash advances from one card to pay the monthly minimum on other cards is a bad idea, whereas applying for a new card that will eliminate the balances on other cards can be a useful move. Especially if the interest rates on the new card are lower. It makes good sense and your overall monthly commitment should drop, even though your line of credit remains the same. I rather think that the 'I want a credit card' individuals are simply seeking temporary relief from their burden of debt, and not thinking about bigger problems two or three months down the line.
It's easy to convince yourself you'll be back on your feet next month and everything will be fine, but the current financial crisis which is hurting us all is without doubt here to stay. Certainly for the next few years at least and none of us can say honestly that our job is 100% safe. I'm not suggesting that the 'I want a credit card' brigade are wrong or even misinformed. What I am saying is that while in the past we could have several credit cards and use them in a cavalier fashion, we should now treat our finances very seriously and make every penny count.
A great idea is to reduce the collective debt on your cards. Get rid of the high interest cards. Yes.. pay off the balances and cut them in half! If there are better deals about, then get rid of all your cards and go for the better deal. At the end of the day the only important factor is how much you are paying each month. By doing a little research and making comparisons of similar cards, you can reduce your monthly financial commitment which can certainly help to ease the pressure and make more sense as well. Leave your cards at home in future, or use it only for essentials. Don't fall into the trap of only paying the minimum monthly payment. If you can get to the stage where you are paying off the full balance each month, then you'll be paying no interest, and the card will be your best friend.
So it's wise to keep in mind that the current financial situation may last a little longer than we think and it's not a good time to get into further debt. Use your existing cards wisely and next time you even think, 'I want a credit card' make sure your actions produce positive results.
Trevor Taylor - I Want A Credit Card - Copyright 2011
How To Get Credit Card Approval
Im often asked how to get credit card approval with the minimum of trouble and without it taking an immeasurable ammount of time. Well actually, providing you have a reasonable credit rating, you can expect to be approved inside a day or so, and it is all really painless. If your credit score is excellent, the process can take as little as only a minute or two or in some instances it happens immediately. Now what about if you are in possession of a less than perfect credit score? And what is considered to be a good credit rating anyway? Well let us look at these queries and others and you will soon realize exactly how to get credit card approval.
What is meant by a Credit Score?
An individual's creditworthiness is characterized by a credit 'score' which emerges from details taken from the individual's credit history of making credit payments on time. This 'credit score' was originally established in 1989 and the purpose of a credit score was to predict the likelihood of an individual paying his debts on time. Credit scores range between 300 and 850 and this figure depicts an individual's creditworthiness at an exact point in time.
What is considered to be a reasonable credit history?
During 2010, a 720 credit score was deemed the minimum borderline for establishing a good credit rating. That figure was approximately 100 points higher than before the housing market crashed in 2008 and the current recession began. The average credit score for all US consumers currently is around 725, even though the bridge between those consumers with a credit score below 600 and those with scores in excess of 800 is getting wider.
How to get credit card approval with a less than perfect credit rating.
Having bad credit will not necessarily stop you from being approved for a credit card, but bad credit can make it more expensive than if you had good credit. Here's how to get credit card approval despite your bad credit.
If you know you have a blot on your credit report, you might increase your odds of getting approved for a card by mentioning the reasons for your financial predicament. No one wants or indeed needs bad credit, but with record job losses, foreclosures and credit card defaults over the past year or two, more consumers are finding themselves with falling credit scores. Consumers have the option of adding a statement of up to 100 words to their credit reports, affording creditors an explanation for the drop in their scores. Whoever checks out your credit is obliged to take into account what is written in that statement.
Knowing how to get credit card approval is only the first step in being approved for the card you really want. Even if you accept a card with a higher interest rate, paying the complete balance each month will avert you having to pay any interest payments and will serve to improve your credit at the same time. It does not do your credit score much good when you have an application rejected, so you it pays to initially research the type of card you are most likely to get approval for, based on your credit history. Your initial enquiries should be your bank or credit union. They will know more about your financial situation than anyone else. You may also make applications for credit cards at smaller retail outlets. Sometimes these smaller companies are more willing to offer you a chance. Or you could simply request a friend or family member to co-sign for a credit card. Keep in mind that their credit is taken into consideration as well, so ask someone with good credit. If you don't make the payments, then they will have to, and it will appear as a blot on their credit rating.
If all else fails you might apply for a secured card. You will have to open and maintain an interest-bearing savings account as security for your line of credit. Your line of credit will be a percentage of your deposited funds. Poor credit is never an issue because you'll be depositing money that the card company can take should you fail to pay your balance. A secured card would typically be a temporary move while you mend your credit. Though no means a perfect move, finding out how to get credit card approval and get your credit back in good shape should be your main agenda.
To be perfectly honest my recommendation to you if you have a bad credit history is to postpone your application for a credit card for a month or two and make use of that time in fixing your credit, or at very least recovering it to the level where you will not be penalized too much when you ultimately make that application. It's all part of finding out how to get credit card approval for the card that will be perfect for your personal requirements.
Student Credit Card Apply Online Now!
Student credit cards are the ideal method for students to learn everything about financially responsibility. Many banks and credit card issuers offer these new cards to college students to help to provide their educational needs. However, to legally apply for a student credit card you have to be over eighteen years of age and enrolled at a college or University. College freshmen will also need to provide a guarantor, for example their parents or a guardian, to sign for their credit card, but the cards will remain in their own name, which means they are able to begin building an excellent credit history early, which is a good thing!
When student credit cards were initially introduced, college freshmen could use their cards for their day to day incidental purchases, or they could use the cards for bigger items, perhaps for clothing or footwear. Today, a large percentage of college freshmen have cars, and the student credit card can offer a perfect way to handle their vehicle expenditure. College freshmen can fill up with gas, pay for maintenance and service when required and they have the financial resources to deal with any unforeseen repair costs, and pay for them at a later date.
It's quite easy to make an online application for a student credit card, but regardless, you are wise to choose one only when you've completed your homework and detailed research on the Internet. When college students embark on their search for a credit card, they rarely peruse all of the options. Typically, if you don't have any credit at all, you're probably going to make the ideal applicant, as this is precisely what the credit card companies are on the lookout for. They want someone that has no credit score at all so they are able to develop them as a long-term customer. It's a point that many people bare in mind and will stay for many years with the credit card company that first approved them.
The main reason why it is so simple to apply online for student credit cards is mainly because the banks generally offer students an initial low limit of around three to five hundred dollars. They believe that freshmen will rely on their parents to make the card payments assuming it is not too excessive. When you decide to complete an application for a student credit card, the process is the same as when making an application online for a regular card. The application form asks for some personal information for example your name, address, social security number, and a few other questions.
Getting accepted for a student credit card is not an arduous task at all. Simply make sure that you're truthful on your form and carefully choose the card you decide to use for your life as a freshman. Be careful that you don't apply for a student credit card then decide that you don't like it, or it doesn't meet your needs. Having several student credit cards will impact negatively on your credit score, which can affect applications you make in the future. It usually takes a few years to establish good credit before you can apply for a regular based credit card. Make sure that you remain responsible with your student credt card and that you make your payments on time. If you can maintain this, any credit card can be accessible to you in the future.
Trevor Taylor
