Applying For A Major Credit Card Even Without Prior History

By Mario A. Churchill

Credit cards are used in almost all day-to-day transactions nowadays. From buying milk to getting a nose job, credit cards are the currency of modern times. Although far from totally replacing real money, a credit card is necessary in order for you to have a place in today's trade and commerce. Applying for a credit card is typically easy; but in some cases, it is much like getting a camel pass through a needle head.

Applying for a major credit card without prior experience or credit history makes obtaining one a far more difficult process. A credit history is needed to measure your capability to pay amounts owed and it also allows the issuing company to provide you with a credit limit and payment plan that can best suit your lifestyle and personality. The absence of a credit history will almost make companies balk at the idea of giving you a credit card; on the other hand, if you are not issued a credit card, there is no way that you can have a credit history. Before this whole issue looks more like a chicken-and-egg debate, here are honest tips that can help you apply for a credit card while you still do not have a credit history.

Explore Other Credit Options

Most of the time, the major credit card companies are the ones who give people without credit history a hard time in applying for a credit card. It is therefore incumbent upon you to look for other credit card options through which you can build your credit history. Usually, smaller companies offer more leniencies to people who do not yet have credit card history.

Entities like department stores and gas stations issue credit cards with small credit limits. If you are issued a credit card from smaller companies, always remember that your goal is to eventually obtain credit cards issued by major international companies, so make it a point to build an impressive credit history by paying your obligations to smaller credit card companies.

Credit Cards Issued By Unions

Being a member of some credit union has its benefits as this type of union issues credit cards to their members. Hence, as a member, or as someone who is qualified to join a credit union, you can take advantage of getting your first ever credit card on which you can build on your credit card history. While obtaining a credit union card can be fairly easy for members, it does not mean that the union gives out its cards blindly. Again, make it a point to pay your debts on time.

Try Secured Credit Cards

Go look for moneylenders who are ready to issue a credit card that has a credit limit amount equal to or a little higher than the cash you have deposited in their favor as security. You may think that this setup is like cooking you in your own fat, but the fact is you need to build your credit history, and if there are no other avenues to do that, secured credit cards are the way to go. Eventually, these types of moneylenders will increase your credit limit without asking you to deposit more cash security. After you have gained an acceptable credit record, you may be qualified to apply for credit cards from major issuing companies.

Truly, the way to apply for a credit card from major credit card companies is by having a good credit history. After you have gone through the different options mentioned above, look for a credit card institution that will evaluate your overall credit history and financial status; and just maybe, you will have your first credit card from a major company.

Mario Churchill is the owner of a credit card website with links where you can apply for a credit card which best suits your needs.

How To Find The Best Credit Rates

By Shelley Green

The best way you can find the best credit rates for your cards is do research. The fact that you are reading this article means that you have started your research already, so you are already on your way to getting the best credit rates for you. You need to compare various credit card companies to discover the best credit rates and those that will benefit you the most.

Comparing the best credit rates can help you make the best choice for you. There are also other factors to think about when choosing a new credit card, these are factors other than the best credit rates, such as other charges and fees. You must asses your personal needs and think about how you are planning to use your new credit card.

The most ideal credit card for you will be the one that will work best with your spending habits and your personal needs. Many independent companies offer expert advice and also great tips about all different aspects regarding credit cards and the best credit rates. There are so many different credit cards available on the market today.

They are all offering various deals and what they say is the best credit rates. These are all being offered right now and you only have to look in the shops, magazines, television and internet to see the world plastered with advertisements for credit cards. You must remember to choose the best credit card with the best credit rates for your personal needs. It is advisable to have as many facts as you can so that you can decide wisely about the best credit rates for your new credit card. Sometimes looking for a new credit card can me like searching for a needle in a haystack and it can be really quite confusing.

To make the best credit rates easier to understand you are able to contact a credit card agent or you could call up their customer service representative. These people should be able to give you the information that you are looking for. The information will help you to compare the best credit rates among the bad. There are also comparison services available for choosing credit cards. Trying to find the best credit rates and best credit card deals make take some time, but it will be worthwhile in the end, if you get the best card for you it is likely to save you a lot of money in the long term.

Shelley Green is the owner of http://www.loans-click.com, a site that specializes in Loans including tips and advice on different loans and also other recommended sites for loans.

Credit Card Traps, And How To Avoid Them

By Dave Berky

"0% interest* for the first six months, no annual fees** and a low fixed*** rate of only 8.9%****!"

* Unless you count the deferred interest we will charge you if you don't pay off the full balance transfer amount when the promotional period ends.

** Except the ones we charge for "late payments****", going over your balance, cash advances, balance transfers, membership in "rewards" programs, etc., etc., etc.

*** Fixed for the first month, but after we may change it without notice for: late payments, going over your balance, changes in the prime rate, or just cause we want more of your money.

**** Rate depends on your credit score. (Which we already checked and intend to charge you 19.8% or we wouldn't bother sending you this great***** offer.)

***** A payment may be late if we just don't get around to processing it in time no matter when you actually mailed it to us.

****** May not be great in all states.

Yes, folks, "the devil is in the details" and the truth is in the fine print.

While this is obviously an exaggerated and fictitious example I have seen most of these "weasel" clauses in the 100s of credit card offers I receive each year.

Some of these tricks and traps are practiced by local and national merchants with their "store credit cards" and "discount cards".

I have seen stores and even car dealerships make "no interest for a year" type announcements and advertisements. But when you actually read the contract (and who does that - they count on you to not read the whole thing and you probably won't understand it without your attorney) you may find that instead of the regular payments you would expect to start at the end of the no interest period, you are required to pay the full purchase price.

If you want to make installment payments, you will be required to pay the payment plus the interest (look for the rate in the fine print) and you may also be required to pay the interest that accrued during your "interest free" period. Gotcha!

Or how about the "no annual fees" bit. Look out for the contract to say "no annual fees FOR THE FIRST YEAR". Or first two years or that a "membership" fee is required. How that differs from an "annual fee" is beyond me.

Also watch out for the "no annual fees" for the use of the card but "membership fee required" to participate the in frequent flyer miles or cash back points program (which was probably why you chose that card to begin with). Gotcha!

And how about the "fixed" rate? Read the fine print, it will actually say "subject to change without notice". Is it just me or do I misunderstand the meaning of the word "fixed"?

Also your "fixed" rate may be raised to the "maximum allowable by state law" if you go over your credit limit (including fees that may put you over your limit before you even know it), make a late payment, miss a payment or do not pay the full amount. Gotcha!

And then there is that low "teaser rate". Yes that's what it is called in the industry and it is appropriately descriptive. That rate is given out, they aren't lying about that. But it is only given to the people who have 700 or above credit scores, minimal debt, and a high paying job.

The majority of the people who are sent the ad will not get the lowest rate. But you won't know your rate until you apply for the card. But by the time they tell you what rate you will be at they have already signed you up and issued your card.

They count on the fact that most people will just accept the rate and go from there. Gotcha!

So how can you avoid these traps?

Rule #1, read ALL of the fine print. If you are not clear on something ask someone else what they think it means. Ask an attorney friend, CPA (certified public accountant), financial planner, banker or other person in the financial industry. Chances are they will have several questions about the fine print, too.

Rule #2, don't apply for a card unless or until they tell you what your actual rate will be. This is hard because most of them are not set up to tell you. Generally you will need to know your credit scores and have a copy of your credit report handy.

Even then you are unlikely to find someone through their telephone maze that will or can actually answer your question. Try to find a card that gives you a confirmed rate before you apply. A conscientious company will first request a copy of your credit report from one of the credit bureaus before quoting you a rate.

Look on http://www.bankrate.com for current rates offered by various credit card companies and banks. Often smaller banks and companies offer better deals and are not as strict or hard to deal with. Check with your local banks also. At least with a locally issued credit card "you know where they live".

Rule #3, always mail your payment at least 7 days before it is due. Or try paying through the Internet. Many companies now offer that payment method. It can also save you time and stamps.

Rule #4, check your statement each month to be sure you are still at the interest rate you signed up for. If your rate has been increased, look for a late payment fee, or some other reason for the increase. Call the company and ask them why they increased your rate.

If your rate was unjustly increased (they processed the payment late or credited it to your account late, but it was not received late) then ask them to change your rate back to what it should be.

Even if you did make a late payment, most companies will reduce your rate after six months of on-time payments. But if you don't ask, they will keep you at the higher rate as long as they can.

In the credit card business it is definitely "caveat emptor" or buyer beware!

David Berky is president of Simple Joe, Inc. One of Simple Joe's products is the Debt Eraser PC software which help anyone get out of debt quickly and inexpensively by creating a Rapid Debt Reduction Plan. To learn more visit http://www.simplejoe.com