College students receive the least stringent credit card offers of any other group. This group of consumers is the only group that can get a credit card (in many cases instantly) without even having a job. This can work in your favor, if you make wise decisions. Not only can you get a great credit card and a free gift, you can also build an excellent credit history. But it all depends on you. If you do decide to get a card, take your time in choosing. Don?t just choose any card that comes your way. Before you choose any credit card offer, make sure you understand what a credit report is, how it will affect you, how a credit limit works, what an APR of a card is, what annual fees apply to the card you are considering, and how cash advances work. Knowing all this before you get a credit card will give you a more secure financial future. Listed below are the most important terms you need to know before you apply for a credit card.
Annual Percentage Rate
All cards have an Annual Percentage Rate (APR) and many have an Annual Fee. The APR is what makes creditors money off your charges. For each penny you charge, interest accrues monthly until you pay that penny off. Cards can have APRs as low as 0% (although 0% is only offered during a short introductory period) and as high as 29%. It is up to you to know what the APR on your card is and whether or not it is a fixed rate, or if it can be changed at any time. You might only charge $20, but you will also owe your creditor the interest that accrues on that $20. However, if you pay off your complete balance by the due date, no interest will accrue.
Be wary of credit card application
A credit card works differently. With a credit card, someone has given you a fixed line of credit. Say, $1000. Anytime you use your credit card, the amount is deducted from your credit line. Then each month you will get a bill. You can either pay all that you owe or only pay a required minimum of the balance due. What you don?t pay will stay on your account and collect interest each month until it is paid off. This might sound like a great thing: buy now, pay later. However, the interest can quickly multiply and cost you much more than you ever spent to start with.
How can I find out what, if any, international surcharges credit card companies apply on top of the 1% exchange fee already charged by either MasterCard or Visa International charging or currency exchange in foreign countries?
Paying with a credit card is safer than carrying large sums of cash. If your credit card is stolen, you can stop charges on the account and get a new card. However, if your cash is stolen there is little you can do. Some credit cards offer valuable travel-related perks too. American Express offers its cardholders help finding an English-speaking doctor, an accident insurance policy and car rental insurance. Check with your credit card issuer about cardholder travel benefits they might have. When you use any credit card internationally you are charged a 1 percent fee by the credit card issuer (Visa or MasterCard). Most people are not aware of this fee. It is imposed at the currency exchange level as part of the transaction. You can find the current currency exchange rate at http://www.xe.com/ucc or by calling your bank. But in addition to this fee, some credit card companies have begun to charge an additional 2 to 5 percent fee for international credit card transactions. For example, American Express charges a 2 percent fee for international transactions with its card. Check with your credit card issuer to learn more about its fees before you make international charges.
I?'m trying to find a credit card where I can co-sign for a friend. She has a permanent job, but no credit history.
Any credit card that allows for a cosigner is a card your friend can consider applying for. When an application asks for a cosigner, it does not limit whether or not that cosigner is a friend. Both you and your friend need to remember that if you do cosign an account for her, both of you will then be responsible for keeping the account current. This means that if she stops paying, you will be expected to pay. However, if the account goes into default or accrues penalties for any reason, it will be recorded on both of your credit histories. Cosigning for your friend should be taken seriously and carefully thought through. You must be sure that you can afford to pay on the account if your friend does not. Since you will not have any control over how much she spends, you need to be prepared for the largest sum possible. In addition, any late fees or other penalties your friend accrues on the account will have to be paid by you once the creditor asks you to pay on the account. The cosigner rarely gets any kind of monthly statements, so you may not know there is a negative situation with the account until a creditor contacts you. You can sometimes get the lender to agree, in writing, to notify you if your friend begins to miss payments. This can notify you early if there is a problem. In each state, cosigners do have rights, so find out what your rights are as a cosigner before signing on the dotted line. You may be able to negotiate the terms of your liability on an account with the lender before cosigning. Explore this option ahead of time. Lastly, keep copies of all paperwork you sign in case these papers are needed in the future.
Automatic Online, On-time Payments
In the era of everything e-commerce, online banking is not trailing behind. Besides checking your account balance, you can now set up automatic payments to be made from your checking account. As far as the amount is concerned, you may elect to have a ?minimum due? or full payment withdrawn. This is an especially great feature for all of us who pay credit card bills late, and get slapped with a $29-$35 late fees. Call your bank today and ask whether it offers automatic payment service.
My Credit Score is 602 which I guess is not very good. Is their a card that I might get with a lower interest rate?
The higher your credit score, the better credit card offers you will be eligible for and receive. This includes the credit cards with the lowest interest rates. In other words, the interest rate you receive is directly related to your credit score. The credit score scale ranges from 300 to 850. Most people have scores between 600 and 800. A score of 720 or higher gets you the most favorable interest rates. According to Myfico.com, someone with a credit score of 720 to 850 will have an Annual Percentage Rate (APR) on their mortgage of 5.649 percent, while someone with a credit score of 675 to 699 will have an APR of 6.311 percent. This small difference can cost you much more than you think. Fortunately, there are many ways to raise your credit score. First, check your credit report at least once a year and correct any incorrect information you find on your credit report as quickly as possible. Second, have as few open credit card accounts as possible. For accounts you do have open, keep the balances as low as possible. And of course, make all of your payments on time. By following these guidelines, your credit score should rise each month and make you eligible for lower interest rate credit cards.
Do I have a right to know whats in my report?
Yes, if you ask for it. The CRA must tell you everything in your report, including medical information, and in most cases, the sources of the information. The CRA also must give you a list of everyone who has requested your report within the past year?two years for employment related requests.
When should credit card payments be credited?
A card issuer must credit your account on the day the issuer receives your payment, unless the payment is not made according to the creditors requirements or the delay in crediting to your account does not result in a charge. To avoid delays that could result in finance charges, follow the card issuers instructions about where to send payments. Payments sent to other locations could delay getting credit for your payment for up to five days. If you lose your payment envelope, look on the billing statement for the address for payments or call the card issuer.
Credit History
A credit report is a history of your credit reported by credit bureaus. This report shows your credit history, including payment history and total debt owed. It can be accessed by anyone considering lending you money. It may also be accessed by employers, car dealers and landlords. This report shows your ability (or lack of) to pay on debts owed. A good credit history can help you buy a house one day, get a low payment plan on a new car you want buy, or simply convince a prospective landlord to rent you an apartment. If your credit history shows late payments and other negative items, you can find yourself unable to do any of these things. Or, for example, you may be able to finance a car, but it will have very high interest rates and cost you a lot more money
