Credit cards

Questions and Answers

Credit cards??

Q) I've never wanted or needed to apply for a credit card in my life. however my fiance and I are planning to buy a flat in the next 6-12 months and realise that I'm going to need to improove my credit (apparently never owing money is a bad thing). My question is what's the best and safest way to build up credit, are credit cards used as a supplement to debit cards and if you are in credit on your credit card do you earn interest? I know I sound a bit thick but honestly don't have a clue about these things!!

A) I do not know of a single credit card that earns you interest on a credit balance. That doesn't mean there aren't any. Good luck finding one, but I'm not sure that will count a lot to establishing credit worthiness. Before creditors lend money, they need to be assured that the funds will be repaid. In other words, is the prospective borrower creditworthy? How to Establish Credit Begin by opening individual savings and checking accounts in your name. Over time, your deposits, withdrawals, and transfers will demonstrate that you can handle money responsibly. Applying for a loan is another option, but be aware that this method of establishing a credit history will cost, since loans require the payment of interest. You could take out a bank loan secured by the funds you have on deposit or by items you own, such as a car. You could also ask a friend or relative who has good credit to cosign a loan, which means that he or she shares liability for the loan with you. You could also apply for department store and gasoline credit cards, which generally are easier to obtain than major credit cards. Before you apply for any credit, however, make sure you understand the terms. For example, how long is the grace period or the time you have to pay the current balance in full before finance charges are added? Is there an annual fee or other fees associated with the credit? If you believe that you will carry a balance, you need to know how finance charges are calculated. Patience is important in this process. It takes time to establish credit and build a record of consistency in making payments to demonstrate your creditworthiness. And it is much better to go slowly and develop a strong credit record than to apply for too many credit cards or a loan that is larger than you can handle. Start slowly, be cautious, keep track of your overall debt, and pay on time. Most importantly, remember that credit actually represents real money and has to be repaid with interest.

Credit cards??

Q) I dont really no anything about credit cards but i need 10,000 pounds. I have a few questions. 1. how mnay credit cards can you have? 2.when do you pay back the money? 3.how much money can you get from a credit card? 4. is it essentially like getting a loan? 5. I dont really understand where the money is from, i mean does it go into your bank acoount? So can you go take out the money in cash from your bank account? So then if i need 10,000 couldnt i just get 10 credit cards and get 1000 pounds from each of them out? How much would i be paying back to each a month? Do you have to get the cards from different banks? I know 10 sounds confusing but im only doing this becuase its to hard trying to find a loan and i really need the money!

A) In response to your questions posed on the Credit Cards, I have outlined some thoughts below: You can have as many credit cards as you wish, however, you may find that the more credit cards you hold retaining a balance upon them, the less likely it is to obtain further credit cards as the company issuing the credit card may believe that you pose too great a risk in terms of not making your payment. Credit Cards work on the principal that you make a payment each month relating directly to the amount of your borrowings, usually 3%, however some card issuers are changing of late – some have increased the level of repayment whilst some have decreased it. For example if you have a balance of £1,000 on a credit card, you will most likely need to make a payment of 3% of that £1,000 which equals £30. The cause of so many problems with credit cards is that the minimum payment does not really repay the amount outstanding as interest is added; this can mean that the balance of £1,000 will not be £970 after a payment is made, but may have only reduced to £990. The amount of money available on a credit card is determined by the card issuer. They will make a judgement, based on your credit history, your salary and overall financial position as to what level of debt you will find sustainable. Some card issuers allow much greater amounts of credit than others for the same person. It is exactly like getting a loan. You are borrowing money from the card issuer and in return for promising to repay at least the minimum payment each month. The difference is that a loan has a pre-determined amount and subsequently a pre-determined payment period, a credit card does not as it is open-ended in terms of the time you take to repay the balance. The longer you take to repay the loan, the more interest you will pay. The money does not go to your bank account normally. You could be allocated a card with a credit limit of say £2,000. This credit limit is the amount of money available to you to borrow. You normally use a credit card to make purchases, however you can often use the credit card to withdraw cash from a cash machine. There are higher costs to accessing cash, both in terms of charges for withdrawals and higher interest rates. It is not advisable to use a credit card to withdraw cash, particularly if you need access to £10,000. You ought to take specific advice before contemplating borrowings of that amount.

Credit Cards?

Q) Do you have any credit cards? If you do, please try and see a program on ITV.One - 4th May Friday @ 8.00pm called Fraud Frenzy: As credit-card fraud is on the increase etc...Please be kind enough to post your answers after you have seen the above programme. Thanks.

A) ok

credit cards?

Q) anybody know any websites where i could apply for a credit card with a poor credit rating?

A) If you are in the UK try Vanquis or Aqua. Vanquis gave me card as I had maxed out by Capital One. They don't ask for loads of information either. The card rally came in handy at Xmas and I have repaid half the money I borrowed already!!!! Good luck.

credit cards???

Q) ive never had anything on credit i pay all my bills but still when ive tried to upgrade my bank they tell me i cnt because i am in and out off work due to illness i am desprately trying to get some sort of overdraft facility is there a sure fire way to get a credit card????

A) You could lie on the application form? The problem you'll have is getting rid of the thing again however - I've got an ongoing complaint with a credit card company off and on for the last 8 years as they're completely incompetent at being able to understand the phrase "terminate account".

Credit cards?

Q) How do you get a credit card when you have a good credit history, any ideas I have a good credit history because I've never had a credit card but know I need one and after applying multiple time I still can't get accepted, I need help any ideas

A) If you've never had a credit card this is not a "good credit history" it is "no credit history" (which is better than "bad credit history" but you get the idea). If you are not able to get approved for a regular account, try setting up a secured credit card. This is where the bank will hold an amount of money in a savings account as security in case you don't pay on your account. This security balance will accrue interest like any other savings account. After you have demonstrated a good payment history try appling again for a traditional credit card. Or, you could just go without a credit card and use a Visa or MasterCard Debit card that draws fund directly from your checking account. That way you don't have to worry about going delinquent and getting a bad credit history.

credit cards?

Q) anyone know where i could get a credit card from even though i have bad credit in the past

A) try vanquis Credit cards. you will have to suffer high rates of intrest though to get your credit rating up.

credit cards?

Q) What is the best card to go for when I have a very short credit history in the U.K? Thanks

A) I got a Sky credit card and my credit rating is cr@p!

Credit Cards?

Q) The other day i got my credit card bill in throught the post. I always pay the full amount the i have borrowed. Last month i payed it off on line, but never payed the entire balance by £0.12. Mistake on my part. I was charged the interest on the entire amount borrowed. Does everyone else know this is what happens..

A) you have to go over the fine print. all credit card companies are different and have different ways of making their money. look over your agreement then call the credit card company. i have a credit card that will do that to me if i'm late or don't make the full minimum payment. it could be ligit.

Credit Cards.?

Q) Why do Credit Card companies allow so many people to get into debt?? People nowadays are using them as if it were there own cash. Then when its too late, they realise they're in big trouble and have borrowed a huge amount that they can't pay back. P.S. I am not talking about myself by the way. I have NEVER had a credit card and NEVER will.

A) to make money but there should be a cap on the amount you can borrow altogether.

credit cards?

Q) i started out with about 6 credit cards. all department store credit cards, and one regular visa credit card. i have paid them all off except for 2 credit cards, and im still paying on my student loan. in the duration of these 6 credit cards, they all went to collection agencies, and i slowly paid them off, in which, im down to 2 now. Is there a way to combine my 2 credit cards so they will get paid off, and by combining them, i can just pay that as a together amount since these minimum payments to them are killing my paycheck. i know theres balance transfers and debt consolidation. i wouldnt mind balance transfers to a different credit card, i just will not do the debt consolidation route. is there anything i can do to combine these 2 cards? even though i paid most of them off, is this hurting my credit since they were in collections then brought to current then paid off?

A) Well, a friend of mine, called the credit card companies and ask them what was the least they would take..to pay them off..sometimes they will let you pay a lot smaller amount..

Credit Cards......?

Q) Will closing out my credit cards (after I have paid them off) hurt my credit? I have (in order I recieved them) Capitol One, Chase, Providian, Applied Card Bank, Aspire Card Bank, Orchard Bank, and Wal-Mart. I am closing out Applied, Aspire, and Orchard. I am keeping Capitol One and Chase because they are my longest (I heard you need to keep your oldest) and I am keeping Providian because it has my highest credit limit (I was told you need at least ONE card with a good credit limit) and I am keeping the Wal-Mart card just because. I haven't used any of them in over three months and I have been working on paying them off (I am down to half the balance on all of them). I want to close out those three once I've paid them off but I am curious on if it will hurt my credit to have them closed? If it does hurt my credit, will having the others (on zero balance or paid off every month) help it more then closing will hurt it? Thanks!!!! Capitol One was my first credit card and I have NEVER had problem with them! They are my favorite!

A) Closing accounts can sometimes hurt your rating. See the first link below. You are right in keeping your oldest accounts open, as your credit score is partially based on how long you have had credit. The second link is Yahoo's information on improving your credit rating. The third link is Motley Fool's information on improving your credit rating. Good luck!

Credit cards?

Q) I'm going to start college soon, and I'm being told by many people that I should get a credit card and "establish my credit" by making payments on things on time. People have tried to scare me by telling me that if I don't buy a new car or a credit card via a store in the mall, I won't be able to purchase a house in the future, because I "won't have established good credit" and "won't be able to get a loan". My initial reaction is that they're lying to me in order to sell me credit cards, but is there something to their arguments? Is it possible to get home loans without a history of good, or any credit? What's the best option in a case like this? Why would I need a credit card if I don't plan on having credit in the future? I don't need credit, and I feel we've been brainwashed into thinking it's necessary. Are there home loans that are given based on proof of income or something other than credit history? It really seems as though people assume credit has to be a part of their lives; I'm not sure that's true.

A) If used responsibly, it's a great way to start building a lengthy and solid history. The trick is to not get in over your head. A credit card should be used for emergency purposes, or if you're able to pay off small purchases. If you're not able to pay it on time, or at all, then it's not a good idea. The benefits like being able to rent a car, make hotel reservations, establish credit in general may not compare to the disadvantages of harassing calls of collectors when you don't pay on time, not to mention hurting your chances of being able to get bigger things like, buying a car, a house, or even a job. Normally when you use a credit card, you have x amount of days before they start charging more money, or interest to what you already charged. That's called a grace period. After a certain date, you'll receive an itemized statement in the mail detailing what you charged, how much you owe, and how much additional money (finance charges) were added on. The key to using a credit card is to not to max it out, or charge it to the limit. That's where they'll get you. It's bad enough to borrow money that you can't pay all at once, but it's even worse when more money is added on every month for borrowing it in the first place!. Like I mentioned earlier, use the card for emergencies, charge only what you know that you can pay off every month. I'll even go as far to say that if you have the money to pay for something in cash and you use the card, put that cash that you would've used to buy it in a jar, cigar box, it doesn't matter, put it and use that money to pay the bill when the statement comes in. Another thing. Don't charge a lot to fast food. It's a common trap that me myself fall victim to from time to time. That Big Mac or Whopper or whatever your favorite burger is wouldn't taste so good when you're paying daily interest on it when you charge it. Keep that in mind. I would probably get one more and that's it. 1 in 7 Americans carry up to 10 credit cards, and the average American has 4. Me, myself I have 3 which I keep low balances and I pay off on-time, if not early every month. Another thing is that you can report your monthly payments on practically everything that you pay every month. There's a website (click this link) http://www.prbc.com/consumers that you can enroll in a program, that verifies, reports historical payments, and also has a bill-pay service that reports the current and future payments. The beauty of this is that this shows what the traditional credit reports do not: an accurate payment history. You can have things like rent, utilities, day care, storage, insurance, phone, cell phone, anything that you pay a month that you receive a statement for. The information reported is compiled in what's call a Bill Payment Score, or BPS. Under the FCRA (Fair Credit Reporting Act) you can have this taken into consideration when lenders are reviewing your credit to give an accurate picture of what your credit is really like.

credit cards?

Q) I have a capital one card and I just got anothe credit card that is a visa. This new card isn't a very popular company because I don't have good credit so i was wondering does it still look good that I have credit cards and making my payments? Thanks

A) This factor carries the highest weight in your credit report. How steadfast are you in repaying your loans, makes your credit report shine. Experts claim that this factor alone accounts for 35% of points in your credit score. So, if you falter on repayment front it is sure to be reflected poorly on your credit score. Outstanding debt The next comes your debt burden. How much you owe is a factor that according to experts carries about 30% weight in your credit score. This is 30% is based upon outstanding debt. To get a better score it is advised that you keep your outstanding debt to a minimum. Read more from: http://www.credit-card-gallery.com/article/204,5_critical_factors_affecting_your_credit_score

Credit Cards ................?

Q) How much is too much credit cards? bank credit cards -and- store credit cards? and which percentage should i look for to compare cards and see which one is better and has low interest? any opinion? thank you guys for all your comments; i will mention a bit more details; i already one card from MBNA (with $150 balance on it) and one from HSBC ($0) -but- i also have cards from kohls ($50), target($50), nordstrom ($0), best buy ($0) and macys ($0). what you guys think?

A) You can check here: http://www.edealinfo.com/creditcard/ The most popular ones are Citi Dividend Platinum Select MasterCard and Chase Cash Plus Rewards Visa Card. Both have no annual fees, 5% cash back on grocery stores, drug stores and gas stations, 1% on other purchases. The only difference is that Citi Dividend has a $300 limit on cash back per year. Having too many cards increases the possibility of identity theft and stolen credit cards, and most likely you will lose check of them. You don't really need specific credit cards for specific stores/purposes if you don't spend that much on them, because the benefit difference is not that much.

Credit Cards?

Q) My friend and I were thinking about crazy stuff, and came up with he topic of credit cards, and seeing as we are not experienced in credit cards we figured we'd ask for help with a question. I feel like an idiot for asking, but does a credit card cost money if there is nothing on it and you plan to put nothing on it?

A) Some cards charge an annual fee, others are free. If you have a zero balance, then there is no fee. If you charge on the card and pay it when the bill comes due, again, no fee. They make they're money off of folks who keep a balance on the card. Interest rates can be anywhere from 6.99% to 31.99% per year. A large percent of the adults in the US, are buried in credit card debt that they have little potential of ever getting out of, because of the high rates of interest. Don't get caught in the trap. Pay off each month or don't use 'em.

Credit Cards?

Q) I am 20, I have a Visa and Amex which I use for everyday things.I have a store credit card (express) which has been open for about 2 years and I have only used it twice. Should I close it. Yesterday I applied for a Macy's card and got it for 1 purchase. How long should I keep it, if I barely use it? Does it mess up my credit to have credit cards I dont really use?

A) actually, as long as you are responsible and don;t run up balances on the cards, it's good to keep them. use them very occasionally and pay them off. having the cards and the unused credit limits on them lowers your total debt ratio, example: you have four cards with a total credit limit of 10,000 and only have 2000 in balances, as opposed to closing those two seldom used accounts and having two cards with a total credit limit of 5000 and 2000 in balances. the higher credit limits and lower debt to limit ratio will actually help your credit score as it shows responsible spending behavior.

credit cards..??

Q) do you know if i maxed out my card and even maxed it out more than i was aspose to if i pay it back will they give me my credit back,they sent me 2 cards and i thought the credit limit was the same on both i was wrong they shut my card down..can i get my credit back now..?? i am so sorry j@SSon i spelled one word wrong does it make you fell good to cut one others..?? jimmy f all you have to do is at the top of the page their r 3 words ask answer discover click on ask and on the first line just like put a part of your question and then in the 2nd box down thats is where you ask tor question then hit the blue box ,check out what you wrote then hit sudmit ..hope that helps you. yes i sure will pay it all off asap. so then i will get my credit back.??

A) Do you mean that if you pay off your card or pay the minimum amount that you owe on your credit card, will they let you keep using it in the future and take the "hold" off your account? If that was your question, then the answer is YES! Even if you incur over-the-limit charges but you pay those off and get current on your card, then you will be able to start charging on your account again, as long as there is available credit. I would definitely pay it off and not just let it go and ignore it, because your credit rating will suffer if you do that.

credit cards?

Q) how do credit cards work? im 20 yrs old and wanting to get my first credit card. im good at paying my bills and all, i just havnt gone and got one yet. can't you get credit cards through your bank? i have a checking account at monroe bank and trust. what should i do?

A)

Credit cards???

Q) Hello, Im interstead in now looking at different times of credit cards, but Im after a certain one, Im looking for a credit card that will allow me to buy things over the phone and internet, but also doesnt use money that I dont have in there, in other words I want a card without an extarr $1000 that I can spend that ISNT mine, if you get what im saying? is this card called a debit visa or????

A) What you want is a secured Visa. You can get one from your bank. You put so much money in an account and they put a hold on it. Say $500. Then they give you a cc with a $500 limit. You use that card and pay it off just like a regular cc without touching the money in the savings account. If you don't pay your bill, they close the card and take the money from the account to pay the bill. Unless you want a Visa Debit card, in which case you just use the money out of your regular checking account. You can use it anywhere ccs are accepted.