True Earnings® Card from Costco and American Express
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Earn cash back on gas and a $25 statement credit with your first purchase made with the Card.
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Earn cash back virtually everywhere you go - 3% for annual gasoline purchases of up to $3,000 (1% thereafter), 3% for restaurants, 2% for travel, 1% everywhere else, including Costco.
Earn 10,000 Membership Rewards® bonus points when you spend $500 in 3 months - redeemable for a $100 gift card!
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The Membership Rewards® program - Earn 1 Membership Rewards® point for virtually every dollar you spend and redeem for your choice of travel, shopping, and entertainment rewards.
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Gold Card Events - exclusive access to tickets for select concerts, shows, major sporting events, and more in cities nationwide.
Starwood Preferred Guest® Credit Card from American Express
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Earn up to 25,000 Starpoints® - enough for up to 6 free nights at a category 1 or 2 hotel.
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Use Starpoints® for free nights and upgrades at participating Starwood hotels and resorts in 95 countries including Sheraton, W Hotels, Westin and more with no blackout dates.
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No annual fee for the first year and $45 thereafter.
Platinum Delta SkyMiles® Credit Card from American Express
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Earn 20,000 bonus SkyMiles® (including 5,000 Medallion Qualification Miles) after first purchase and another 2,500 for adding an Additional Cardmember.
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Earn one companion Coach Class ticket each year upon renewal.
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Earn at least 1 mile for every eligible dollar spent.
What type of information do credit bureaus collect and sell?
Credit bureaus collect and sell four basic types of information. Identification and employment information Your name, birth date, Social Security number, employer, and spouses name are routinely noted. The CRA also may provide information about your employment history, home ownership, income, and previous address, if a creditor requests this type of information. Payment history Your accounts with different creditors are listed, showing how much credit has been extended and whether youve paid on time. Related events, such as referral of an overdue account to a collection agency, may also be noted. Inquiries CRAs must maintain a record of all creditors who have asked for your credit history within the past year, and a record of those persons or businesses requesting your credit history for employment purposes for the past two years. Public record information. Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may appear in your report.
What can you afford using your credit card
However, there are times when it might be wiser to use a credit card. For example, any time you make a purchase online, you should try to use a credit card. Why? If there ever is a case of someone stealing your credit card number and charging on it, you will usually only have to pay up to $50 of the stolen amount. If someone steals your debit card number and uses it, you will rarely get any of that money back. Some banks do offer theft protection on debit cards as a courtesy, but they are not legally obligated to refund the money stolen. It is up to the customer to close their account in order to stop withdrawals. Check with your bank to find out what their liability policy is on debit card theft. If you do use a credit card, you can always pay off your balance immediately and avoid ever paying any interest.
Automatic Online, On-time Payments
In the era of everything e-commerce, online banking is not trailing behind. Besides checking your account balance, you can now set up automatic payments to be made from your checking account. As far as the amount is concerned, you may elect to have a ?“minimum due?” or full payment withdrawn. This is an especially great feature for all of us who pay credit card bills late, and get slapped with a $29-$35 late fees. Call your bank today and ask whether it offers automatic payment service.
College and Student Credit Cards
College students receive the least stringent credit card offers of any other group. This group of consumers is the only group that can get a credit card (in many cases instantly) without even having a job. This can work in your favor, if you make wise decisions. Not only can you get a great credit card and a free gift, you can also build an excellent credit history. But it all depends on you. If you do decide to get a card, take your time in choosing. Don?’t just choose any card that comes your way. Before you choose any credit card offer, make sure you understand what a credit report is, how it will affect you, how a credit limit works, what an APR of a card is, what annual fees apply to the card you are considering, and how cash advances work. Knowing all this before you get a credit card will give you a more secure financial future. Listed below are the most important terms you need to know before you apply for a credit card.
Avoid a Late Fee Punishment
Remember the times in your childhood when asking your parents for forgiveness calmed their anger and compelled them not to punish you. If it worked, it just might work once again, only this time with your credit card issuer. Being late on a credit card payment is now a ?“punishable offence,?” that will cost you at least $15. However, if you?’ve been ?“good?” on your previous payments, you will most likely get a break from your credit card company. Usually, if you call and ask for ?“forgiveness,?” your card issuer will oblige. If your only excuse for being late on your payments is that you?’ve never been late before, this will probably work as well, as most banks usually forgive first-time offenders.?’
May I obtain a U.S. issued credit card if I have an excellent credit history in another country?
Yes, you might be able to use your past excellent credit history to obtain a U.S. issued credit card. However, it will take some time and effort on your part. Many people come to the U.S. with a positive credit history. Normally, this credit history is not transferred to the U.S. As a result, when you apply for a credit card the creditor will not see your excellent credit history. They will then deny you credit based on the fact you supposedly have no credit history established. Getting a social security number is the first step you should take. You must have a social security number to get a U.S. issued credit card. Next, contact Experian, Equifax and TransUnion (the three major credit reporting bureaus) to see if they will transfer your excellent credit history from your home country. This usually does not happen, but in some cases it can. For example, TransUnion does transfer Canadian credit histories to the U.S. If you can get your credit history transferred, this will make it much easier for you to get a U.S. issued card. If you find that you cannot get your credit history transferred, you will have to start from scratch and build a new credit history in the U.S. You can look into applying for secured credit cards, bank-issued credit cards and other credit cards that can get you started. These cards may charge fees or high-interest rates, so be sure you understand all the terms before applying. Whenever possible, try to apply by phone. This way you can explain your situation in person and possibly get approved or denied on the phone. If denied, you can apply in writing and state in your letter application that you have an excellent credit history in another country. If possible, include a copy of your credit report with the application. The creditor may then be able to approve you after some investigation. If there has been no response in 30 days, contact the creditor to check on your application.
How important is the Balance Computation Method for Finance Charges?
If your plan has no free period, or if you expect to pay for purchases over time, it is important to know how the card issuer will calculate your finance charge. This charge will vary depending upon the method the card issuer uses to figure your balance. The method used can make a difference, sometimes a big difference, in how much finance charge you will pay -- even when the APR is identical to that charged by another card issuer and the pattern of purchases and payments is the same.
I would like to re-build my credit. I filed for bankruptcy three years ago. How do I find a lender that will give me reasonable annual fee and interest rate?
Its true: after filing for bankruptcy, credit can be difficult to obtain. And what makes things worse is that your credit score will drop even lower each time a company disapproves your application. That means its doubly important that you apply for a card that youre likely to get rather than risk a turn-down. Youre definitely "at risk" at this time?…a target for unscrupulous lenders with big promises and shady deals. Many lenders will try to entice you with "super-low interest rates for those who filed for bankruptcy." It all sounds good until they come up with some questionable reason why you dont qualify and then try to convince you to sign up for a card with high rates and fees. Beware! Other companies may offer low teaser rates, but then hike the interest after a short period of time. And if you miss a payment -- look out! Some impose outrageous fees for late payments, sticking you with a $25 fine when youre late on a $5 payment. Heres a secret credit card companies dont want you to know: Late fees represent as much as one-third of the income of some credit-card issuers.
I wanted to get a credit card but I do not have any credit history. Are there other ways to build a credit history?
To someone seeking credit for the first time, it may seem like a vicious circle: You cant get credit without a credit history, and you cant establish a credit history without credit! Frustrating, isnt it? Interestingly, some institutions only look only at your salary, job and the other financial information that you put on the application to determine if you qualify for their card. However most will be interested in your track record -- How have you handled other debts -- and will ask to see your credit report.
To get the story on you, institutions will turn to information provided by credit-reporting agencies or credit bureaus like Equifax that collect, store and quantify information about borrowers. The records show your credit history -- how much credit youve received and how faithfully youve repaid. Fortunately, even if youve never had a Mastercard, American Express, Visa, Discover, or other major credit card, you can still build a good credit history:
?• Open a checking account or savings account or both. Although not part of your credit history, your accounts may be checked by potential lenders as evidence that you have money and know how to manage it.
?• Cancelled checks can be used to show that you pay utilities or rent bills regularly, a sign of reliability.
?• Apply for a department store credit card. Stores dont ask for credit histories as often as major credit card institutions, so you should be able to get a card based on your annual salary. Then, repaying your store bills on time becomes a major ""positive"" in your credit history.
?• Look for a financial institution that will allow you to deposit funds to serve as collateral for a credit card. Some institutions issue a credit card with a credit limit equal to the amount on deposit. These cards are relatively easy to obtain and as with your department store card, paying these bills on time will enhance your credit history.
?• If you dont have a credit history because you?’re new in town, request a summary of any credit record kept by a credit bureau in your former town. Dont know whom to contact? Ask the bank or department store in your former town for the name of the agency it reports to.
You may already have a great credit history and not realize it. If you do, its time to ""comparison shop"" the credit card companies and find out who has the best deal to offer you.
Cash Advance
Many credit cards allow cash advances When you get a cash advance off your credit card, you either use your card to get cash from your bank teller or ATM machine, or you use one of the paper checks that came with your credit card. A cash advance can help you when you are short on cash and desperately need it, but it can also cost you much more than a regular charge on your credit card. There is usually an initial fee just for getting a cash advance and a higher interest rate on the cash amount borrowed. These fees add to your balance owed and can make your balance grow more each month than you anticipate. For these reasons, you should limit cash advances to emergency situations.
