Applying for a Credit Card?
A Credit Article Contributed by Girish Katyal
Credit Card - Everybody Wants It
In today's world every one needs a credit card as it is fast becoming the most convenient and popular method of making payments. It is easy for people to carry and most important it eliminates the exchange of physical cash for completing a transaction. It helps people to establish and improve their credit standing. So everybody needs it and everyone wants it. And thus the question of how to get one arises.
Applying for a Credit Card Without Any Credit History
If you are young and you don't have any credit rating then you have to establish one. You can start to establish your ratings by applying and getting a local petro-card or a departmental store credit card or others. You should wisely use these cards and pay your dues in time to establish a good credit rating. To apply for a Visa or Master credit card you need to have some of the basic qualifications which are as follows:
(1) You must be of legal age i.e. you must be of at least 18yrs or more. You can only apply for a credit card if you are above 18 years.
(2) You must be employed, self-employed or run your business. You must have some kind of income to get a credit card. This is to make sure that you will be able to pay your dues in time.
(3) You must have an account in a bank. You can have either a current or a savings account with a reputed bank.
(4) You must have a verifiable home address. You must possess legal or government documents to verify your place of residence like a driver's licence or a telephone bill, etc.
(5) Your monthly payments should not be more than the half of your income.
Remember, always pay your bills or at least the minimum amount due with in time. As any delayed payment will be entered as a "black mark" in your credit report and this will drastically taint your credit rating. So it is essential to have a good payment record for maintaining a good credit history and also to get better deals and interest rates from you credit card providers.
Applying for a Credit Card If You Have a Bad Credit History
You need a credit card but you have a bad credit history, then what you can do. You will need to re-establish your credit history by applying for a secured credit card. With secured credit card you can reinstate your credit history over a period of six months or a year. Although the interest rate charged is much higher than what is charged for other types of credit cards and also the companies issuing it requires a security deposit, it is great tool to reinstate your credit report.
The security deposit and the credit granted are more or so equal. After getting it you have to now pay your dues on time each month which will increase your credit score and re-establish your credit rating. After a year or two you will qualify for an unsecured card with a higher limit, provided you don't have too much debt and pay your bills on time.
