Getting approved for a credit card can be difficult without a positive credit history working in your favor. It’s a Catch-22: To obtain a credit card, you need a good credit history. But to have a good credit history, you need to establish good credit!
This no-win cycle can keep people with a non-existent, limited or negative credit history from getting approved for a credit card. But it doesn’t have to if you understand the type of credit cards available and how to build a good credit history.
When it comes to credit cards, the type of card you apply for will depend on your situation. If you’re a student, you’ll, naturally, sign up for a student card. But if you’re a non-student with a non-existent or bad credit history, a card that is secured or obtained with a co-signer may be your best option. With co-signed credit cards, the co-signer guarantees and is responsible for the debt. This means that the co-signing person is responsible for paying the full amount of the debt if the card holder doesn’t pay. In fact, when co-signed debt goes into default, three out of four times co-signers are normally asked to repay what is owed, according to the Federal Trade Commission.
Furthermore, the issuing bank can attempt to settle the debt without first trying to collect from the card holder. The bank can also use the same collection methods against the co-signing individual, including suing and garnishing wages. If the debt is not paid, it can leave a negative mark on the credit history of the co-signer, as well as the card holder.
Despite the risks, a co-signed credit card can be great tool for helping a friend or relative build their credit history so they can one day obtain a card on their own. Secured, co-signed and pre-paid credit cards offer viable options. But you should start building a strong credit history, so you can obtain a regular credit card on your own in the future.
First, you need to understand how credit card issuers determine credit worthiness. The approval criteria varies from among issuing banks, but generally relates to what’s often called the three C’s of credit: capacity, character and collateral. Capacity refers to your ability to pay based on your income and existing debt. Collateral refers to any assets you have that can secure payment, such as bank accounts or home ownership. Character refers to factors like your payment history, length of employment, etc.
To get a good idea about how your application will fare with credit card companies, check your credit history with one of the major credit reporting agencies: Experian (www.experian.com), Equifax (www.equifax.com) and TransUnion (www.tuc.com). These agencies access your payment information directly from the companies you have credit with, as well as from government agencies such as the legal court system.
Credit reporting agencies use the information in your credit history to determine your credit rating or credit score. Credit scores, also known as FICA or Beacon scores depending on the CRA, generally range from 350 to 850. Most banks will approve you for credit if your score is at least 620. If your rating is 720 or higher, banks will offer you their lowest interest rate.
Generally, y our credit score is determined by your payment history for the last two years. T echnically, CRAs calculate your score using a closely-guarded formula. TransUnion, for example, determines credit scores using a variety of factors, including: how you pay your accounts, how much you owe and how often you’ve applied for credit.
http://www.credit-cards-rates.co.cc/
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Help answer the question about credit card
Credit Card?I am an 18 year old student looking to establish credit. I know all the responsibilities of having a credit card, im just wondering if it would be acceptable for me to call a credit card company and ask them to give me a credit card.
I can do that, correct?
The credit card company won't know you're planning to leave the country! Even if they did know, they can't stop you, unless they first sue you and get a court order saying you can't leave. But it is highly unlikely that any judge would grant such an order for a credit card debt.
Yes, they could sue you in court for the debt. They would have to serve you with the court papers before they could have a trial.
That is acceptable, but it's easier if you go online and apply for really any type of credit card that you want. Some companies will not want to give you a card unless it is secured if you don't have any previous credit. You're best bet it to try a department store first, even though their interest rates are the highest. This way once you get a card and make a purchase, you can pay it off quickly. Keep doing this and your credit will be established. jsut don't go overboard and end up like the rest of us who are in debt up to our ears.
@janoleolsen good luck getting 10,000 clients though.
@janoleolsen dam! lol
Lol in the first 20 secs it showsso many credit cards u can easily use
Stop applying for the cards, you will only be denied. You will have to start building your credit rating with secured credit. Make sure the banks report to the credit bureaus, otherwise it does no good.
Go to the bank you do business with, ask them if they have a secured credit card, if they do open a new account with $300 – $500 tell them you want a secured credit card against that account. Use the card for small purchases like gas or food and pay the card off entirely each month on time.
Also you can take your savings account and save until you have $1,000. Tell your banker you want to take a installment loan out against the savings account. Take the money you receive and put it in your checking account to repay the loan. Pay it off in 12 months. Lenders like to see a mixture of credit, revolving, installments, personal loans.
After a few months you can try for an unsecured card again. Retail store cards and gas cards are normally easier to get.
It takes 24 months of consistent on time payments to build a good credit rating.
A credit card can be a really good thing to have, or it can be a nightmare. Try to find one that charges no annual fee and that gives you some kind of reward…airline miles, cash back, something. Then…and listen closely…PAY IT OFF IN FULL EVERY MONTH!! You do that, no problem. you start missing payments, then you can quickly get in over your head.
They may occassionally send you the most boring looking documents you have ever seen in the mail. Read them. The credit cards can change the terms of your agreement, and these boring looking notices are the only way they tell you. If you use the card after theyhave sent out the change of terms, you have accepted the new terms.
Good luck.
danG!!!!! dat dude is so boringggggggg!! aLmost fell asleep!! :^/
The money in your savings account would not be available while using your debit card making normal purchases unless you have selected an overdraft protection program and the funds are not available in your checking account. I highly recommend adding this to your account, in the event that you make a purchase that is greater than the amount available in your checking account, the bank will use money from your savings account to cover the purchase. This way you don't aquire all those overdraft fees or have bounced checks (while writing checks). Pay close attention to your funds! Alot of debit cards can also be used as a credit card. Its basically the same thing in this case, where in both cases the monies will be deducted from your checking account, debit takes the funds immediately while credit will take sometimes up to 4 days to completely withdraw. The difference between your debit card, and a credit card, would be that credit cards are an open balance of money availably ready to be lended from banks, purchases using a traditional credit card also incrue interest on the amount you spend. (you have to pay back more than you spend) Debit cards are attatched to your bank account and will just deduct money from your account to pay for the things you've purchased
And though you didn't ask for it… After you've accrued a larger sum of money in your savings account, speak to your local financial director and check into special savings account that give you back more money for allowing the bank to use it, such as locked savings accounts and bonds! 
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The sure-fire way of NEVER being turned down for a major credit card would be to apply for secured credit card. Basically what type of card this is, is that you give them money up front (say you ask for a $500 limit), and everytime you use that card, the money will already be in your account with that card and it will just come out. This secures to both the credit card company and to yourself that the money will always be in there, therefore there will never be any over-ages, late fees, and the the like and will guarantee you a strong credit building account. I hope that my answer has helped you.
Well, thats one way to get back at credit card companys; run them into dept!!!
Congrats, on your cleaning up your debt and your credit score. What you want to do is compare credit cards and the good news is there are many internet sites that will allow you to.
Check http://www.creditland.com, http://www.bankrate.com, http://www.credit.com On these sites you can look and compare the credit cards that have no annual fee and a low APR. Also if you belong to a credit union, they have excellent rates. You may also consider doing a search for LOW credit card rates in search engines. USA Today does a comprehensive list every year.
I hope this helps you out.
Good Luck
Why not start a credit card bank? Charge 30% APR, get 10,000 clients with a balance of 5000 dollars each, and the bank makes 10,000 x 5000 x 30% = 15 million dollar annual profit! There will be expenses, but they won’t be 15 million… 1000 people investing 5000 each makes enough to start a bank. And if the bank makes a 10M profit, your 5000 dollars owns 0.1% of this. Typically a company with a 10M profit is worth 100M dollars, 0.1% of 100M is 100,000 dollars – a very good return on 5000
alot more people know how now hahaha
Definitely NOT Bank of America.
They recently upped peoples APR without any explanation or reason; it was all over the news. Try a company that's a little less shady. There are plenty of horror stories of what this company has done to their consumers.
Cmon boring…
there are a couple of ways you could start building credit, you could get a small personal loan which you might need a cosigner or the best way will be getting a credit cards, you could get a credit card and use it for your every day expenses but make sure you pay in full at the end of the month that way it will show pay in full everytime the credit card company reports to the credit beuros. At the begining you will only be approved for the lower end credit cards but once you build credit in about 6-9 months you should be able to apply for a better card with better benefits such as free miles or cash back. Check out http://www.fastcreditcardapprovals.com and go under bad or no credit section and you will find a few choices. But if you are a student apply of a student credit card these cards have no annual fees and low rates.