The Credit Card Application
by Garth Brady
Obtaining a credit card in the United States is not very complicated; however, there are certain things one should take into account when filling out an application. The more thorough you are in filling out a credit card application the more information the bank will have. This means the bank may be able to offer a lower interest rate or more benefits.
Many banks send mail to your home or office with pre-approved credit card offers. Although the offers may sound good, they are only a marketing ploy for saying "We've noticed you, but you need to pass further evaluation". That's why they include an envelope with a proper credit card application.
Honesty
The first thing to remember is to be completely honest. Fill out the credit card application with factual information regarding your financial situation, your marital status and even something as simple as your true address. Banks check all of this information and will be suspicious if they find that something is not right
Secondly, do not forget anything. If you are buying or leasing a car, mention it in the application. If you are making your monthly payments in a timely manner, the bank will see that you are someone who can be trusted. The same thing applies if you have a mortgage for your home.
Accuracy
Double-check all of the spellings and numbers you enter in your credit card application. Although it may not be considered as fraudulent if you make a mistake, it can significantly delay the processing time.
Online or Offline?
The postal service may be too slow for some people. If you need your new card urgently, check out websites of different banks and find out what they can offer. Remember that if you don't have a credit history, you will have to pay bigger rates until you are recognized as someone who can be trusted.
When you have found a financial institution to accommodate you, fill the online credit card application with the same accuracy mentioned above and send it. Sooner than you expect, the bank will contact you with the news. There is no need to be afraid of a credit card application as banks are for-profit organizations and it's logical that they need to pro
แสดงบทความที่มีป้ายกำกับ Credit Card Application แสดงบทความทั้งหมด
แสดงบทความที่มีป้ายกำกับ Credit Card Application แสดงบทความทั้งหมด
วันพุธที่ 6 กุมภาพันธ์ พ.ศ. 2551
วันอาทิตย์ที่ 20 มกราคม พ.ศ. 2551
How To Choose and Use Credit Cards
How To Choose and Use Credit Cards
by sas_upena1
Credit Card Terms
A credit card is a form of borrowing that often involves charges. Credit terms and conditions affect your overall cost. So it's wise to compare terms and fees before you agree to open a credit or charge card account.
The following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application. You also may want to ask about these terms when you're shopping for a card.
Annual Percentage Rate. The APR is a measure of the cost of credit, expressed as a yearly rate. It also must be disclosed before you become obligated on the account and on your account statements.
The card issuer also must disclose the "periodic rate" - the rate applied to your outstanding balance to figure the finance charge for each billing period.
Some credit card plans allow the issuer to change your APR when interest rates or other economic indicators - called indexes - change. Because the rate change is linked to the index's performance, these plans are called "variable rate" programs. Rate changes raise or lower the finance charge on your account. If you're considering a variable rate card, the issuer must also provide various information that discloses to you:
* that the rate may change; and * how the rate is determined - which index is used and what additional amount, the "margin," is added to determine your new rate.
At the latest, you also must receive information, before you become obligated on the account, about any limitations on how much and how often your rate may change.
Free Period. Also called a "grace period," a free period lets you avoid finance charges by paying your balance in full before the due date. Knowing whether a card gives you a free period is especially important if you plan to pay your account in full each month. Without a free period, the card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your account. If your card includes a free period, the issuer must mail your bill at least 14 days before the due date so you'll have enough time to pay.
Annual Fees. Most issuers charge annual membership or participation fees. They often range from $25 to $50, sometimes up to $100; "gold" or "platinum" cards often charge up to $75 and sometimes up to several hundred dollars.
Transaction Fees and Other Charges. A card may include other costs. Some issuers charge a fee if you use the card to get a cash advance, make a late payment, or exceed your credit limit. Some charge a monthly fee whether or not you use the card.
Balance Computation Method for the Finance Charge. If you don't have a free period, or if you expect to pay for purchases over time, it's important to know what method the issuer uses to calculate your finance charge. This can make a big difference in how much of a finance charge you'll pay - even if the APR and your buying patterns remain relatively constant.
Examples of balance computation methods include the following.
Average Daily Balance. This is the most common calculation method. It credits your account from the day payment is received by the issuer. To figure the balance due, the issuer totals the beginning balance for each day in the billing period and subtracts any credits made to your account that day. While new purchases may or may not be added to the balance, depending on your plan, cash advances typically are included. The resulting daily balances are added for the billing cycle. The total is then divided by the number of days in the billing period to get the "average daily balance."
Adjusted Balance. This is usually the most advantageous method for card holders. Your balance is determined by subtracting payments or credits received during the current billing period from the balance at the end of the previous billing period. Purchases made during the billing period aren't included.
This method gives you until the end of the billing cycle to pay a portion of your balance to avoid the interest charges on that amount. Some creditors exclude prior, unpaid finance charges from the previous balance. Previous Balance. This is the amount you owed at the end of the previous billing period. Payments, credits and new purchases during the current billing period are not included. Some creditors also exclude unpaid finance charges.
Two-cycle Balances. Issuers sometimes use various methods to calculate your balance that make use of your last two month's account activity. Read your agreement carefully to find out if your issuer uses this approach and, if so, what specific two-cycle method is used.
If you don't understand how your balance is calculated, ask your card issuer. An explanation must also appear on your billing statements.
Other Costs and Features
Credit terms vary among issuers. When shopping for a card, think about how you plan to use it. If you expect to pay your bills in full each month, the annual fee and other charges may be more important than the periodic rate and the APR, if there is a grace period for purchases. However, if you use the cash advance feature, many cards do not permit a grace period for the amounts due - even if they have a grace period for purchases. So, it may still be wise to consider the APR and balance computation method. Also, if you plan to pay for purchases over time, the APR and the balance computation method are definitely major considerations.
You'll probably also want to consider if the credit limit is high enough, how widely the card is accepted, and the plan's services and features. For example, you may be interested in "affinity cards" - all-purpose credit cards sponsored by professional organizations, college alumni associations and some members of the travel industry. An affinity card issuer often donates a portion of the annual fees or charges to the sponsoring organization, or qualifies you for free travel or other bonuses.
Special Delinquency Rates. Some cards with low rates for on-time payments apply a very high APR if you are late a certain number of times in any specified time period. These rates sometimes exceed 20 percent. Information about delinquency rates should be disclosed to you in credit card applications or in solicitations that do not require an application.
Shopping Tips
Keep these tips in mind when looking for a credit or charge card. * Shop around for the plan that best fits your needs. * Make sure you understand a plan's terms before you accept the card. * Hold on to receipts to reconcile charges when your bill arrives. * Protect your cards and account numbers to prevent unauthorized use. Draw a line through blank spaces on charge slips so the amount can't be changed. Tear up carbons. * Keep a record - in a safe place separate from your cards - of your account numbers, expiration dates and the phone numbers of each issuer to report a loss quickly. * Carry only the cards you think you'll use.
by sas_upena1
Credit Card Terms
A credit card is a form of borrowing that often involves charges. Credit terms and conditions affect your overall cost. So it's wise to compare terms and fees before you agree to open a credit or charge card account.
The following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application. You also may want to ask about these terms when you're shopping for a card.
Annual Percentage Rate. The APR is a measure of the cost of credit, expressed as a yearly rate. It also must be disclosed before you become obligated on the account and on your account statements.
The card issuer also must disclose the "periodic rate" - the rate applied to your outstanding balance to figure the finance charge for each billing period.
Some credit card plans allow the issuer to change your APR when interest rates or other economic indicators - called indexes - change. Because the rate change is linked to the index's performance, these plans are called "variable rate" programs. Rate changes raise or lower the finance charge on your account. If you're considering a variable rate card, the issuer must also provide various information that discloses to you:
* that the rate may change; and * how the rate is determined - which index is used and what additional amount, the "margin," is added to determine your new rate.
At the latest, you also must receive information, before you become obligated on the account, about any limitations on how much and how often your rate may change.
Free Period. Also called a "grace period," a free period lets you avoid finance charges by paying your balance in full before the due date. Knowing whether a card gives you a free period is especially important if you plan to pay your account in full each month. Without a free period, the card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your account. If your card includes a free period, the issuer must mail your bill at least 14 days before the due date so you'll have enough time to pay.
Annual Fees. Most issuers charge annual membership or participation fees. They often range from $25 to $50, sometimes up to $100; "gold" or "platinum" cards often charge up to $75 and sometimes up to several hundred dollars.
Transaction Fees and Other Charges. A card may include other costs. Some issuers charge a fee if you use the card to get a cash advance, make a late payment, or exceed your credit limit. Some charge a monthly fee whether or not you use the card.
Balance Computation Method for the Finance Charge. If you don't have a free period, or if you expect to pay for purchases over time, it's important to know what method the issuer uses to calculate your finance charge. This can make a big difference in how much of a finance charge you'll pay - even if the APR and your buying patterns remain relatively constant.
Examples of balance computation methods include the following.
Average Daily Balance. This is the most common calculation method. It credits your account from the day payment is received by the issuer. To figure the balance due, the issuer totals the beginning balance for each day in the billing period and subtracts any credits made to your account that day. While new purchases may or may not be added to the balance, depending on your plan, cash advances typically are included. The resulting daily balances are added for the billing cycle. The total is then divided by the number of days in the billing period to get the "average daily balance."
Adjusted Balance. This is usually the most advantageous method for card holders. Your balance is determined by subtracting payments or credits received during the current billing period from the balance at the end of the previous billing period. Purchases made during the billing period aren't included.
This method gives you until the end of the billing cycle to pay a portion of your balance to avoid the interest charges on that amount. Some creditors exclude prior, unpaid finance charges from the previous balance. Previous Balance. This is the amount you owed at the end of the previous billing period. Payments, credits and new purchases during the current billing period are not included. Some creditors also exclude unpaid finance charges.
Two-cycle Balances. Issuers sometimes use various methods to calculate your balance that make use of your last two month's account activity. Read your agreement carefully to find out if your issuer uses this approach and, if so, what specific two-cycle method is used.
If you don't understand how your balance is calculated, ask your card issuer. An explanation must also appear on your billing statements.
Other Costs and Features
Credit terms vary among issuers. When shopping for a card, think about how you plan to use it. If you expect to pay your bills in full each month, the annual fee and other charges may be more important than the periodic rate and the APR, if there is a grace period for purchases. However, if you use the cash advance feature, many cards do not permit a grace period for the amounts due - even if they have a grace period for purchases. So, it may still be wise to consider the APR and balance computation method. Also, if you plan to pay for purchases over time, the APR and the balance computation method are definitely major considerations.
You'll probably also want to consider if the credit limit is high enough, how widely the card is accepted, and the plan's services and features. For example, you may be interested in "affinity cards" - all-purpose credit cards sponsored by professional organizations, college alumni associations and some members of the travel industry. An affinity card issuer often donates a portion of the annual fees or charges to the sponsoring organization, or qualifies you for free travel or other bonuses.
Special Delinquency Rates. Some cards with low rates for on-time payments apply a very high APR if you are late a certain number of times in any specified time period. These rates sometimes exceed 20 percent. Information about delinquency rates should be disclosed to you in credit card applications or in solicitations that do not require an application.
Shopping Tips
Keep these tips in mind when looking for a credit or charge card. * Shop around for the plan that best fits your needs. * Make sure you understand a plan's terms before you accept the card. * Hold on to receipts to reconcile charges when your bill arrives. * Protect your cards and account numbers to prevent unauthorized use. Draw a line through blank spaces on charge slips so the amount can't be changed. Tear up carbons. * Keep a record - in a safe place separate from your cards - of your account numbers, expiration dates and the phone numbers of each issuer to report a loss quickly. * Carry only the cards you think you'll use.
วันพฤหัสบดีที่ 17 มกราคม พ.ศ. 2551
Understanding Prepaid Credit Cards
Understanding Prepaid Credit Cards
by Tina Porter
If your credit is poor or severely damaged then you are fully aware of how difficult it can be to obtain a credit card, even one that is secured. You also know that in this day and age it is a necessity to have one. Do not worry. There is a solution to this problem.
Prepaid credit cards can give you the spending freedom that you need without being bound by any type of contract. They are easy to set up and use. All you need to do is open and deposit money into an account with a company that offers them. You control what the limit is because you are the one supplying the funds.The amount you deposit is the amount you have available. You do not have to worry about receiving a monthly bill because you do not owe any money. You will not be charged interest or finance fees because you are not borrowing any money. There is no chance of you ever being late with a payment or going over the limit. Once the balance on your card reaches zero you will no longer be able to use it until you deposit more money into your account, which you do at your own convenience.
It is important to note that these cards also have several limitations. Technically, they are the same as debit cards with the exception that they are not tied to your personal checking or savings account. Your payment history is not monitored so your credit rating will never be affected by them. Also, many companies will charge you a fee to open or deposit money into a prepaid account with them. This fee is usually around $5 or $10. It would be cheaper to open a no cost checking or savings account that automatically comes with a free debit card. Finally, you may find that you are not able to use a prepaid credit card for reoccurring charges, such as a phone bill, Internet subscription, or cable bill. Many companies refuse to accept them for these types of transactions because there is always the chance that the money won't be there when it is time to withdraw it.
A Prepaid credit card works exactly like a normal credit card without all of the hassle. You have total control over every aspect of it, including the limit and availability of funds. While it will not eliminate the damage that is already done to your personal record, it will give you the freedom to purchase those items that you might not be able to buy with cash.
by Tina Porter
If your credit is poor or severely damaged then you are fully aware of how difficult it can be to obtain a credit card, even one that is secured. You also know that in this day and age it is a necessity to have one. Do not worry. There is a solution to this problem.
Prepaid credit cards can give you the spending freedom that you need without being bound by any type of contract. They are easy to set up and use. All you need to do is open and deposit money into an account with a company that offers them. You control what the limit is because you are the one supplying the funds.The amount you deposit is the amount you have available. You do not have to worry about receiving a monthly bill because you do not owe any money. You will not be charged interest or finance fees because you are not borrowing any money. There is no chance of you ever being late with a payment or going over the limit. Once the balance on your card reaches zero you will no longer be able to use it until you deposit more money into your account, which you do at your own convenience.
It is important to note that these cards also have several limitations. Technically, they are the same as debit cards with the exception that they are not tied to your personal checking or savings account. Your payment history is not monitored so your credit rating will never be affected by them. Also, many companies will charge you a fee to open or deposit money into a prepaid account with them. This fee is usually around $5 or $10. It would be cheaper to open a no cost checking or savings account that automatically comes with a free debit card. Finally, you may find that you are not able to use a prepaid credit card for reoccurring charges, such as a phone bill, Internet subscription, or cable bill. Many companies refuse to accept them for these types of transactions because there is always the chance that the money won't be there when it is time to withdraw it.
A Prepaid credit card works exactly like a normal credit card without all of the hassle. You have total control over every aspect of it, including the limit and availability of funds. While it will not eliminate the damage that is already done to your personal record, it will give you the freedom to purchase those items that you might not be able to buy with cash.
วันจันทร์ที่ 14 มกราคม พ.ศ. 2551
Best Credit Card Deals
Best Credit Card Deals
by Mario Churchill
No matter where you search on the Internet today there are several advertisements for the best credit card deals. Some that offer low interest rates while others offer no payments for a year.
With so many credit cards available the best credit card deals are usually the ones that are offering incentives as well such as reward points, or air miles, anything of that nature.
However with the best credit cards available in such abundance it is actually rather hard to choose which one to go with. The best credit card values depend solely on what the credit card company has to offer so basically read the terms and the agreements and you should be able to come up with the best credit card deals.
If you own a company or a small business then obviously the best credit card deals for you would be those referenced for business. And these can be found simply by doing a search on the Internet. A note to the wise however, some of the best credit card deals have a catch so read up on them thoroughly.
Although, some of the best credit card deals actually come to your mailbox, offering different types secured, unsecured, or prepaid. In any case the best credit card deals are out there, you don't even have to look very hard for them.
In fact, another way to find out about the best credit card deals is through your email address, quite often credit card companies will send offers via the email account that you have placed on one advertising site or another.
If you aren't sure which credit card company has the best credit card deals then do a little research on the background of the company, compare different credit cards, believe me they are in abundance and used a lot today.
In all reality, the best credit card deals are those with low interest rates or fixed interest rates, those that offer points or cash back when you use the credit card, or those that are offered with minimal fees and requirements.
Nine times out of ten you will find the best credit card deals on the Internet through a search of some kind, whether you look up the actual name of a credit card provider or simply search unsecured or secured. Whatever your preference may be, the best credit cards will be listed among the results, however as previously stated, compare a few of the results to actually find the best credit card deal that suits your finances and your needs.
In most cases some of the best credit card deals even offer two credit cards one for you and one for you domestic partner, whichever the case may be.
Ultimately, the best credit card deals are out there just waiting for people to sign up for them. After the initial application is done, then if you are approved for whichever type of the best credit card deal you could find, then you should receive your credit card and after activation you will be using the plastic in no time.
by Mario Churchill
No matter where you search on the Internet today there are several advertisements for the best credit card deals. Some that offer low interest rates while others offer no payments for a year.
With so many credit cards available the best credit card deals are usually the ones that are offering incentives as well such as reward points, or air miles, anything of that nature.
However with the best credit cards available in such abundance it is actually rather hard to choose which one to go with. The best credit card values depend solely on what the credit card company has to offer so basically read the terms and the agreements and you should be able to come up with the best credit card deals.
If you own a company or a small business then obviously the best credit card deals for you would be those referenced for business. And these can be found simply by doing a search on the Internet. A note to the wise however, some of the best credit card deals have a catch so read up on them thoroughly.
Although, some of the best credit card deals actually come to your mailbox, offering different types secured, unsecured, or prepaid. In any case the best credit card deals are out there, you don't even have to look very hard for them.
In fact, another way to find out about the best credit card deals is through your email address, quite often credit card companies will send offers via the email account that you have placed on one advertising site or another.
If you aren't sure which credit card company has the best credit card deals then do a little research on the background of the company, compare different credit cards, believe me they are in abundance and used a lot today.
In all reality, the best credit card deals are those with low interest rates or fixed interest rates, those that offer points or cash back when you use the credit card, or those that are offered with minimal fees and requirements.
Nine times out of ten you will find the best credit card deals on the Internet through a search of some kind, whether you look up the actual name of a credit card provider or simply search unsecured or secured. Whatever your preference may be, the best credit cards will be listed among the results, however as previously stated, compare a few of the results to actually find the best credit card deal that suits your finances and your needs.
In most cases some of the best credit card deals even offer two credit cards one for you and one for you domestic partner, whichever the case may be.
Ultimately, the best credit card deals are out there just waiting for people to sign up for them. After the initial application is done, then if you are approved for whichever type of the best credit card deal you could find, then you should receive your credit card and after activation you will be using the plastic in no time.
วันจันทร์ที่ 31 ธันวาคม พ.ศ. 2550
6 Questions and Answers on Credit Card Application
6 Questions and Answers on Credit Card Application
by Susan Rumbo
Nowadays the range of credit cards is so vast, that sometimes choosing the one can be quite confusing. In one particular case, why one credit card deal can be so different from hundreds of others? We are glad to suggest you six questions and answers. They will possibly help you to choose a plastic which does for you best.
1. Are you a student? Being a student, you are free to apply for a student credit card. It would be much better, of course. It is quite possible, that your application will be accepted without problems, no matter what your credit is. However, before an application, it would be better to contact to the bank where you are going to obtain a credit card.
2. Are you going to transfer your balance from a credit card to another one? In this case it would be much better to look for a plastic with low APR on balance transfers. APR is an abbreviation for Annual Percentage Rate, and it implies the total cost of your loan expressed as interest rate. Plastics with low APR on balance transfers may be very convenient; however, you still should be careful with these, as they represent a nice base for swindlers.
3. Are you going to make large purchases? In this case, pay special attention to the plastics with low APR on purchases. If you are really intended to make large purchases, you can also take advantage of bonus points which you can earn with every purchase. Moreover, pay attention to special grace period, which is different for various plastics. Grace period is a special period during which you may pay off your debt without any extra charges, or you do not have to pay at all, if you cannot. Usually this period lasts for 10-28 days.
4. Do you pay off your debt in full every time you get it? If a customer has enough money or your credit card is only for an emergency, he or she can pay off a bill in full every time he or she gets it. In this case, chose the deals with introductory APR of 0% or grace period. You will be able to pay off a balance not worrying about rates.
5. Are you ready to pay fees? In many cases the issuers charge various fees. And sometimes these can be really high. There are quite enough of them: annual fees, cash advance fees, balance transfer fees, foreign exchange fees, setup fees, penalty fees... Of course, not all of them are charged, but some (for instance, cash advance fee) are charges ALWAYS. Moreover, some issuers can charge a fee irrespective of the fact, that you do not use your plastic.
6. Do you need a good Customer Service? Sometimes this can be a quite important issue. In some cases, for instance, in case of loss of your plastic or if there is any charge you would like to contest, etc. you may need such a service. Moreover, you need a friendly and competent service. So choose the right bank with great reputation and with really nice customer service.
by Susan Rumbo
Nowadays the range of credit cards is so vast, that sometimes choosing the one can be quite confusing. In one particular case, why one credit card deal can be so different from hundreds of others? We are glad to suggest you six questions and answers. They will possibly help you to choose a plastic which does for you best.
1. Are you a student? Being a student, you are free to apply for a student credit card. It would be much better, of course. It is quite possible, that your application will be accepted without problems, no matter what your credit is. However, before an application, it would be better to contact to the bank where you are going to obtain a credit card.
2. Are you going to transfer your balance from a credit card to another one? In this case it would be much better to look for a plastic with low APR on balance transfers. APR is an abbreviation for Annual Percentage Rate, and it implies the total cost of your loan expressed as interest rate. Plastics with low APR on balance transfers may be very convenient; however, you still should be careful with these, as they represent a nice base for swindlers.
3. Are you going to make large purchases? In this case, pay special attention to the plastics with low APR on purchases. If you are really intended to make large purchases, you can also take advantage of bonus points which you can earn with every purchase. Moreover, pay attention to special grace period, which is different for various plastics. Grace period is a special period during which you may pay off your debt without any extra charges, or you do not have to pay at all, if you cannot. Usually this period lasts for 10-28 days.
4. Do you pay off your debt in full every time you get it? If a customer has enough money or your credit card is only for an emergency, he or she can pay off a bill in full every time he or she gets it. In this case, chose the deals with introductory APR of 0% or grace period. You will be able to pay off a balance not worrying about rates.
5. Are you ready to pay fees? In many cases the issuers charge various fees. And sometimes these can be really high. There are quite enough of them: annual fees, cash advance fees, balance transfer fees, foreign exchange fees, setup fees, penalty fees... Of course, not all of them are charged, but some (for instance, cash advance fee) are charges ALWAYS. Moreover, some issuers can charge a fee irrespective of the fact, that you do not use your plastic.
6. Do you need a good Customer Service? Sometimes this can be a quite important issue. In some cases, for instance, in case of loss of your plastic or if there is any charge you would like to contest, etc. you may need such a service. Moreover, you need a friendly and competent service. So choose the right bank with great reputation and with really nice customer service.
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