Should I Apply For A Credit Card?
Are you pondering on whether you should apply for a credit card? Well, the answer quite simply is – ‘Yes’ – you should apply for a credit card (this is true for most people). The credit cards seem to have transformed our lives. In fact, one can term credit cards as a revolution.
Today, you find ads in TV/newspapers/website/shops and almost anywhere and everywhere; all asking you to apply for a credit card. When you look around, you see that most people have credit cards. In fact, most people have multiple credit cards. Everyone seems to apply for a credit card. So, why should you apply for a credit card?
There are a lot of benefits associated with credit cards; however, the most important benefit is the convenience that they offer. For most people, this is the prime and the sole reason that instigates them to apply for a credit card. This wouldn’t have been the case a few years ago, when not many merchants accepted credit cards. However, today, most merchants do accept credit cards.
So, instead of carrying a lot of cash on you (which is both inconvenient and unsafe), you can just carry a small piece of plastic with you. Moreover, you get interest free credit i.e. you don’t have to pay the bills till the next monthly billing cycle. So, you can buy now and pay later (when your salary arrives) – a great reason to apply for a credit card.
To add to that, there are certain merchants that offer interest-free instalment payment plan i.e. you can make a big purchase today and pay for it in instalments on your credit card. So credit cards works as instant long term loan too (not just a monthly loan). Yet another reason to apply for a credit card is the discounts on shopping. This is made possible by the tie-ups between credit card companies and the merchants. So credit cards offer many benefits.
There are various ways in which you can apply for a credit card – you can apply for a credit card in person, you can apply for a credit card on the internet and you can apply for a credit card on phone too (by asking the representative to meet you). You will as such be approached by a lot of sales representatives, all asking you to apply for a credit card with their company.
To apply for a credit card, you will need to fill-in a credit card application form (which is easy to fill and the representatives of the credit card company will assist you in that). When you apply for a credit card, you basically enter into an agreement with the credit card supplier (the form that you fill when you apply for a credit card is actually an agreement). After you have submitted your application, the credit card company conducts certain checks to determine your credibility; and if everything is fine, you receive the credit card.
So, applying for a credit card is easy and to apply for a credit card or not to apply for a credit card is a matter of personal choice. However, for most people who don’t have any credit card, the recommendation is ‘Apply for a credit card’.
Watch the video related to credit card
A bi-weekly commentary by UPI writer, Martin Sieff.
Help answer the question about credit card
What credit card would you recommend for someone trying to re-establish good credit history?I have decent credit but I had cancelled all my cards when trying to get out of debt. I am now free of all unsecured debt but I need to have a card so in the future I won't be hurt by having no credit.
I'm thinking I want a card with no annual fee and a low APR. The card would only be used very occassionally and paid off immediately. I have no desire to repeat previous mistakes.
Does anyone have any recommendations for a good card for this purpose?
Okay, as I said, but everyone is skipping, is that I have decent credit. My credit score is 700.
When I got into trouble I went into debt consolidation right away BEFORE my credit got screwed up.
But I do appreciate those of you who are taking the time to answer.
April 19th, 2010 at 8:44 am
Orchard Bank has cards for people that are trying to build or rebuild their credit. They even offer secured cards in case you're not approved for their standard credit cards. A secured card although you have to put a deposit upfront to get the same amount in a line of credit, has the most flexiblity. What I mean by that is that you can build up your credit line by adding to the deposit, which you can't do with a regular card. The deposit is gaining interest while you're building credit, so in a sense it's like building credit with a savings account. The higher the limit you build with that secured card, the better it looks on your debt to available credit ratio, which is 30% of your score. Keep in mind that if you pay on time, and keep the balance manageable (30% or below the credit limit) usually after a year, you get that deposit back with interest. and the card either converts to a regular one, or an better card is offered to you. If you're willing to sock away some extra cash you would've put in a regular savings account, but you want to build your credit at the same time, this should be the option for you.
I posted the link to Orchard Bank where you can pre-apply to see what kind of cards you may be eligible for. They also offer secured cards, like I mentioned earlier.
Good Luck!
April 19th, 2010 at 9:48 am
April 19th, 2010 at 8:55 am
These cards are for teens/Students who want a credit cards or to build there credit.
You can get it online,
student-credit-cards1 . blogspot . com
April 19th, 2010 at 9:08 am
i agree 1000%
April 19th, 2010 at 9:09 am
What kind of insane advice is this? How can you in all seriousness be promoting credit cards to people who HAVE NO JOB! DER! And we wonder why America is drowning in debt! Get Real. Why not encourage our students to save and invest instead!
April 20th, 2010 at 12:51 am
I believe your best option is a secured credit card from your bank. You put the money to back it up, hence secured. This is a great way for you to learn to manage your credit before going deeper. It is important to learn how to manage your credit because you do not want to end up 10k in debt with no way out. Some other options include but are not limited to: a store card like Walmart or JcPenny or sears. They are not able to be used anywhere else but are good for building a credit history. Be very careful with them, they carry very high APR and start with low limits. You could end up paying 25% interest on that 200 purchase. A personal loan from your bank, you would need collateral, a share secured loan (look it up, too much to get into), or an auto loan. You would need a cosigner for the auto loan, but it would build your credit, and theirs, if you make the payments faithfully.
April 20th, 2010 at 5:36 am
A prepaid card scores over credit cards especially if the owner has a not so perfect credit history.
The rejection is non existent in case of prepaid credit cards, there are no credit checks, no employment verification, and approval is guaranteed.
With a bit of dilligent shopping and comparision of various prepaid credit card offers, it is not difficult to find a prepaid card with no annual fees, no late payment fees, no repayments, and no penalties whatsoever. So, the ownership costs of a prepaid card can be negligible.
With prepaid cards it is very easy to promote financial discipline. Since you can only spend what you have, there is no overspending, and hence no debts.
Some prepaid cards do report their use to major credit bureaus and hence are a good instrument to rebuild credit history.
Prepaid cards have wide acceptablility, and in some cases they are even more readily accepted than credit cards. Apply online at : http://www.credit-card-gallery.com/PrePaid_Card.html
April 20th, 2010 at 3:11 am
a crock of shit………yeah right.
April 20th, 2010 at 7:19 am
getting a student credit card is so easy, a cave man can do it, Wells Fargo bankers are always begging me to get one whenever i go there…
April 20th, 2010 at 8:09 pm
I would apply for a Discover card with rewards, check out http://www.fastcreditcardapprovals.com under rewards cards if you get approved make sure to cancel your premier card
April 21st, 2010 at 4:20 am
If you are a college student, the last thing you want is a credit card. Try going to your local credit union for a loan or getting parents/relative to cosign but credit cards for student are horrendously high on the interest rate. Also, talk to the counselor or tech department at the school you are at. there are some good deals for students available and some colleges help the student get one at a discounted rate. Also, since it is for school, you may be able to get the school to tell you how you can use student loan money to buy a laptop.
April 21st, 2010 at 9:53 am
First Premiere Bank. http://www.firstpremier.com/
At your age, you will need to probably get a secured credit card which means if you qualify, ask for a 1200. balance because they will charge 199. to your credit card that will reflect as a balance on your first statement.
Or if you own a car, you can get a secured loan against the vehicle.
I am with the guy above. Don't go into debt. Suck it up and save and pay cash. You don't see it because you are young, but our nation is in crisis. Only those who exercise savings value will succeed. I have a substantial savings and my husband wants to buy a motorcycle. Since we are at retirement age, he is giving guitar lessons 2 nights a week and saving for the motorcycle eventhough we have enough cash in our savings to buy several. It's wise.
April 21st, 2010 at 11:43 am
All you can know about credit cards from this site. It gives you some reliable, safe and highly useful links.
http://www.tinyurl.pl/?RR8fpG4R
It will help you a lot as it helped me.
April 21st, 2010 at 1:06 pm
Get a card from your bank. Do not pay the balance in full, keep a small balance.
You establish a credit history and will develop a credit score. Once you get a higher score you will then be able to get a card at a lower rate. I have excellent credit and have a card I use for business that is 5.9%. I know people that have 20% or higher. Be sure to check the small print on the contracts. Watch out for those teaser rates and be aware of the following …. If you have one card that has a teaser rate say 8.9% for six months, etc.
If you are late paying any of your other bills or credit cards they can switch you to the highest rate allowable in your state. Be leery of the cards that give you a certain percentage back based on your spending, they usually charge a high interest rate and give you the false impression that you are getting money back when in reality you are paying more because of the higher rate. Shop around for the lowest rate. Good luck!
April 21st, 2010 at 11:34 pm
i have a 3,000 balance on a bank of america card if i pay off the balance and cancel the card will my credit be affected?
April 22nd, 2010 at 11:42 am
This piece of crap video does not explain how the magnetic strip of the credit card works.
FUCK YOU ASSHOLE.
April 22nd, 2010 at 2:51 pm
Is easy being responsible, I have 2 credit cards, recently applied for another one therefor cancelled one I had, because I have established myself that I won’t have more than two credit cards. In five years I am with them, I had only paid interest in 3 cycle periods, I am always looking forward to full pay my balance, even if I stay with little money after that, is so easy, I don’t know why is so hard for people to control them self with the use of credit cards. lol.
April 22nd, 2010 at 4:23 pm
Is a student credit card the same as a regular credit card, except with a lower balance “500 dollars”. Or is it strictly for paying for school.
Please help.