A Credit Card Deal under Constraint
10/05/2007 | Choosing Credit Card
It's hard to imagine that in the century of online purchases, virtual communication and plastic money someone in civilized society doesn't use credit cards. However, such people do exist. There can be singled out 2 major categories with no credit history.
The first one is young people, who have just come of age. They are at the beginning of their credit card life, and it's up to them whether they want to start building their credit history right away, or they can take advantage of carefree youth and wait a little with the choice of their first credit card.
But once youngsters decide to go to college, they face problems of adult life. First of all, those are financial problems, of course. Student fees are pretty high. And though it's usually parents who pay for their kids' studies, students are ready and willing to become financially independent.
Student credit cards are probably the best decision for young people. Cards of this type are given to high school, college or university students. With them youngsters can start establishing their credit history and study the basics of money management. Such cards give students an opportunity to control the purse strings at their own discretion. Besides, they come with special "students'" perks that meet young people's interests.
But if you don't happen to be a student, if you are over 18, and if you do not owe a credit card, you might belong to the second group of people that do without credit cards. You ask, "What is their problem?" Principles, I would reply.
Some people just reject using credit cards. Whether because they find it more convenient to pay in cash, or just refuse to pay numerous fees, accrued to their credit. Moreover, there is a risk of identity theft, getting into debts, going bankrupt, hidden charges - all of this brings plastics into disrepute.
Anyway, no matter what category you belong to, one day you might face a necessity of obtaining a credit card deal. This kind of condition might be one of the terms of your job offer, for instance. As many companies often have business credit cards in use, which is quite convenient, by the way. Every employee is given a separate credit card that they can use on business-related expenses.
Well, if you for some reason face a problem of becoming a credit card holder, even under constraint, I have a good idea to put forward.
Secured credit cards. Such cards do not differ much from all the rest credit cards. They also have a credit line, some fees that vary, depending on a certain offer, etc. The basic distinction of such card is the deposit you are to pay for getting this card. This deposit will determine your credit limit. Usually, the amount of money deposited equals the credit line.
Thus, being an inexperienced credit card holder, with a secured credit card, you will be protected from getting into debt. You physically will not be able to spend more money than you have on your credit. Actually, a secured credit card is one of quite few alternatives for people with no or bad credit history.
Though the name of the card is associated with safety and protection, there are some things to consider before you make an application.
First you should determine the size of your credit line according to your demands. Estimate your financial abilities in order to understand if you are able to afford depositing such amount of money. Remember that credit card issuers generally set certain minimum and maximum levels for the deposit.
Second what you are to do is definitely read very carefully all terms and conditions of your credit card deal, including the fine print. On this stage you will find out everything about your fees, APR, rewards - if there are some - the bank policy concerning the use of your deposit and the due dates of your payments.
So, if a secured credit card is the best decision for you, go ahead, fill a credit card application. It's a really good chance to build or rebuild your credit history without a risk of getting into debts. Just look through some credit card offers, choose the right one for you and apply for it. And who knows, you might like your new status of a credit card holder.
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Comments
Ryan, 11:19 PM, October 09, 2007
The choice of cards depends on your abilities and demands. The thing that is important is not to be in a hurry.
Rosa Emilia Gary, 01:27 AM, March 04, 2008
yo llame la semana pasada a citi bank para pedir una cuente corriente . como yo no hablaba ellos me dieron un interprete pero despues que yo le di toda mi imfomacion el me dio un numero de telefono con unos opciones. cuando yo llame a este telefono resulto ser el telefono del banco de america. y en citibank dicen que alla no hay ningun record de esta transacion . bueno casualmente en toda la semana no me llegado absolutamenente nada a mi correo pareciera que alguien lo recogiera por que siempre me estaban llegando targetas .yo estoy muy preocupada . desearia que ustedes me ayudaran tambien si fuera posible que no se le de mas imformation a mas entidades acerca de los unicos que debieran tener imformation o mejor constante imformation es el banco donde yo tengo mi mortgage que es Wochovia por favor diganme que hacer .
Mi dieccion ahora es
2731 Mill Valley court
Matthews NC 28105 estaria muy agradecida.por sugerencia de como protegerme mi direccion anterior es
117 ledgewood AVE
Netcong 07857
gracias por su attencion de ustedes atte.Rosa E Gary
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