Apply For Credit Card-Getting Approved For A Credit Card Can Be Difficult
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/
Article Source: ArticlesBase.com
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hire car with only a debit card?
I am shortly heading to orlando and im looking to hire a car but i think hire companies require a credit card when we arrive but i only have a debit card does anyone know companies that will accept debit cards
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Dont have a creditcard for amazon help!?
Ok you have to have a credit card to download amozon apps can you use a gift card insted of a credit card
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Question about my life.?
Okay, here we go. I met this 20 year old guy. We hit it off, when we first met. Then I backed off because the very next day he was talking about marriage, and having children by me. Fast forward three weeks, (the time he was relentlessly chasing me), he came home with me to meet my family, then I finally said yes to being with him. He, then moved in my dorm, shared my meal plan, and my friends, etc. The meal plan eventually ran out, so I had to use my money. Sometimes, I would sacrifice a meal or two so he could eat. At this time, he didn't have a job. He was kinda lazy. I got pregnant, had a miscarriage, etc. That's when our relationship got harder. He started being really flirtatious, always hanging out with his friends, making me check his twitter (even though, I shouldn't have) especially after I blamed him for the miscarriage. He also started putting a strain on my friendships. He was interacting with them more than I was. He used to go to my family's house and stay with me because he didn't wanna be without me. He talked my dad into letting him sleep under his roof, he also asked my parents if he could marry me. He loved my dad, because he wasn't really there. So he turned into my fiancé. I met his family, & he became my world. I was helping him look for a job, and feeding him, giving him sex/love, what I thought I was supposed to do. He got kicked out of my dorm, I followed him. He slept on his friend's couch, until we found a place. I was with him the whole time. He got fired, we scrambled to find him a job. He was jobless, so I paid for the security deposits, and he begged me for a cell phone, I ended up buying new cells because he had been phoneless, too. My parents even said I was taking on the burden of the breadwinner when I shouldn't have been. My guy gets a job, a good one. Two weeks into it, I was exhausted, and in debt (payday loans, credit cards) thing I didn't partake in. And stressed out. He was spending unnecessary money, being very inappropriate in twitter and facebook with other women. I was working everyday, and also pregnant, again. My parents came and got me. But I didn't wanna leave. I love him. My guy was furious with me, and sad. Then, he went in defensive mode, and tried to break up with me etc. Then, he calmed down and misses me, and wants to be with me. My parents were very supportive of us, though. Until they found out he was 23, and that he lied about some other stuff. Now, my dad wants me to abort it, and they constantly badmouth him. My guy wants me to keep it. But I don't know what to do. Should I still be with him after all of this in a six/seven month span. I'm only 19. & I love his family, too. They think I'm the one for him. I feel like he's learning now what he should have learned when he was younger. But all this is causing confusion in my head, and putting a strain on my relationships, but I don't know. So I need to make some decisions. Any questions or clarifications, please ask.
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