Wednesday, July 19, 2017

Want To Get A Credit Card? These Are The Things You Should Do And Know.

These are some useful things or ideas you should have if you want to get your credit card.
Credit cards has disadvantage because of their interest rates, late fees, and encouragement to pay only the minimum balance every month. They require restraint and financial good sense. But they also have benefits and come in handy if you are faced with an emergency or a large expense. How do you get a card, though, especially with no credit history? Talk to your bank or apply directly for credit cards, but also try to build up your credit history in the long run. Let's go.


Talking to a Financial Institution
Inquire at a bank or credit union.
  Larger banks and even some credit unions offer their own credit cards to customers. Consider starting at one of these institutions. They will be able to give you sound advice and explain important details like fees, credit limits, and interest rates.
Bank credit cards are usually reserved for established customers. You’ll need an account. Having a checking account at the bank can help, in particular.
If you are a long-time customer, the bank may ask you first about a credit card. As banks seek to diversify, they are trying to build up credit card portfolios and entice customers with good introductory interest rates and extra rewards.
Another benefit of having a bank credit card is that you may be able to link the card to your normal accounts, making payments easier to manage.

Make an appointment with a banker. Most banks offer several different cards. The best one for you will depend on your financial situation, spending habits, and credit score. Sit down with a banker. She / he will be able to discuss your options and advise you on the most fitting choice.
Ask questions and listen for important details. You’ll want to be clear about each card’s profile. What is the yearly interest rate (APR)? Is there an annual fee for holding the card? How much is the credit line? What is the minimum payment you can make toward outstanding balances?

Make sure to know if the card’s APR is “introductory” or “fixed.”  Lenders will often offer a low introductory rate to attract customers, which will then go up after a period of months or years.
Ask about rewards. Some credit cards will earn you air miles with each purchase. Some offer cash back or points that you can redeem for merchandise. Weigh what options you have.
Non-profit financial institutions like credit unions often offer lower APRs and lower penalty rates on credit cards. You will probably have to be a member of the credit union to qualify, however.

Consider a secure card. If you are new to credit, or if the bank cannot offer you a regular credit card, ask about getting a “secure credit card.” Secure cards are used to build up trust and a good credit history. They can help you get a foot in the door and eventually qualify for an unsecured account.

Secure cards require collateral.
This means that you will have to give the bank a deposit for your credit line ($500 for a $500 credit line, for example, or $1000 for a $1000 line).
Secure cards work like normal credit cards. Your deposit won’t count toward payments, but is just there for security.
Your bank will periodically review your account. If you pay on time, they may eventually offer you a normal credit card with a larger line of credit.
Be aware that your bank keeps a close eye on secured card accounts. You’ll have to make all of your monthly payments, or the bank may be able to keep your deposit.

Apply for the card.
After talking with a representative of your bank or credit union, you will be asked to fill out an application. Take this application seriously and answer all the questions honestly. Lying about your information is fraud and against the law. [9]
You will have to provide personal information, but also details on your citizenship, employment, and finances.
Be prepared to answer questions about your annual income but also the monthly cost of your housing and how much you have in “liquid assets,” i.e. how much money you have in cash, savings or checking accounts, or certificates of deposit.
Submit the application and wait for your bank’s decision. This may take a couple of weeks. If approved, they will usually send the card in the mail.
You’ll have to activate the card before using it. Activation is easy and only takes a few minutes. Just follow the instructions that come with the new credit card.

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