Posts Tagged ‘Annual Percentage Rate’
Common Credit Card Application Questions
Posted in Finance on 02/13/2011 02:21 pm by admin
James J. Robinson asked:
Getting answers to your credit card application questions is an important part of the process of obtaining a line of credit that meets your needs, and does not have to cost you an arm and a leg! By finding out the details in advance, you are in a better position to make the best choice for your needs. It may help if you think of yourself as a credit card detective as you go through the application process.
Question: Is there an annual fee?
One of the credit card application questions you need to get answered is whether the card you are considering requires that you pay an annual fee. You will need to pay this amount whether you are using the account or not. Not all consumers feel that paying a fee to keep an account open is a good deal.
Question: What is the APR?
The APR, or Annual Percentage Rate, is the rate of interest that you are charged for purchases and cash advances made against your card. Some cards will offer a low APR (some are even available at zero percent) for the first few months. After the promotional period has passed, the credit card account reverts to the company’s “normal” interest rate, which may be several percentage points higher than what the customer has been paying.
Question: Will they ask about my bank accounts?
Since the lender is taking a risk that you will be able to pay back and credit you use, yes, you should expect to give evidence of things like how much money you make, how much cash you have access to, and how much debt you carry.
Question: Will they ask about my FICO score?
Your FICO or credit score is important, but the lender won’t ask you to provide this info. They can obtain it directly from on of the three credit rating services.
Pauline
Getting answers to your credit card application questions is an important part of the process of obtaining a line of credit that meets your needs, and does not have to cost you an arm and a leg! By finding out the details in advance, you are in a better position to make the best choice for your needs. It may help if you think of yourself as a credit card detective as you go through the application process.
Question: Is there an annual fee?
One of the credit card application questions you need to get answered is whether the card you are considering requires that you pay an annual fee. You will need to pay this amount whether you are using the account or not. Not all consumers feel that paying a fee to keep an account open is a good deal.
Question: What is the APR?
The APR, or Annual Percentage Rate, is the rate of interest that you are charged for purchases and cash advances made against your card. Some cards will offer a low APR (some are even available at zero percent) for the first few months. After the promotional period has passed, the credit card account reverts to the company’s “normal” interest rate, which may be several percentage points higher than what the customer has been paying.
Question: Will they ask about my bank accounts?
Since the lender is taking a risk that you will be able to pay back and credit you use, yes, you should expect to give evidence of things like how much money you make, how much cash you have access to, and how much debt you carry.
Question: Will they ask about my FICO score?
Your FICO or credit score is important, but the lender won’t ask you to provide this info. They can obtain it directly from on of the three credit rating services.
Pauline
Instant Approval Credit Card Application – The Benefits
Posted in Finance on 12/03/2010 11:05 am by admin
Louis Zee asked:
We have all gotten them, the unsolicited mail from a random credit company telling us that we have been pre-approved for a credit card with a limit up to a certain amount (this depends on the current promotion the credit card company is running as well as the strength of your credit score), but that we need to act fast or the offer will expire within a limited time frame. These offers, while many consider junk mail, can actually provide you with you a great line of credit with a very reasonable APR (annual percentage rate) and by taking a few minutes of your time to fill out the instant approval credit card application online, you may just find yourself with a brand new line of credit that you can use right away — this is often helpful if you have high interest cards with balances that you would like to transfer to your new credit card.
Highly secure, the benefits of using an instant approval credit card application include the fact that you have been pre-screened for the credit offer and the chances of you being approved are very high; often times these credit cards come with a fantastic introductory rate that will last 6 to 12 months and include any balance transfers you may want to complete at the time of application; instant approval takes a relatively short amount of time and once you have filled in all the necessary information, you can have your decision as quick as a couple of minutes. These benefits are very attractive in this fast paced world we have created and live in, not to mention in these trying economic times, having a ready backup to emergency cash is always a good thing to have set aside.
So, you see, receiving a pre-approval letter for credit in the mail can often lead to the good things mentioned above, especially the peace of mind knowing that if something ever goes wrong, you have a way to make it better in the short term. So the next time you get an instant approval credit card application offer in the mail, do not automatically assume it is junk mail, open it and take the time to research the offer — you may find that this is the right line of credit for you.
Henry
We have all gotten them, the unsolicited mail from a random credit company telling us that we have been pre-approved for a credit card with a limit up to a certain amount (this depends on the current promotion the credit card company is running as well as the strength of your credit score), but that we need to act fast or the offer will expire within a limited time frame. These offers, while many consider junk mail, can actually provide you with you a great line of credit with a very reasonable APR (annual percentage rate) and by taking a few minutes of your time to fill out the instant approval credit card application online, you may just find yourself with a brand new line of credit that you can use right away — this is often helpful if you have high interest cards with balances that you would like to transfer to your new credit card.
Highly secure, the benefits of using an instant approval credit card application include the fact that you have been pre-screened for the credit offer and the chances of you being approved are very high; often times these credit cards come with a fantastic introductory rate that will last 6 to 12 months and include any balance transfers you may want to complete at the time of application; instant approval takes a relatively short amount of time and once you have filled in all the necessary information, you can have your decision as quick as a couple of minutes. These benefits are very attractive in this fast paced world we have created and live in, not to mention in these trying economic times, having a ready backup to emergency cash is always a good thing to have set aside.
So, you see, receiving a pre-approval letter for credit in the mail can often lead to the good things mentioned above, especially the peace of mind knowing that if something ever goes wrong, you have a way to make it better in the short term. So the next time you get an instant approval credit card application offer in the mail, do not automatically assume it is junk mail, open it and take the time to research the offer — you may find that this is the right line of credit for you.
Henry
First Time Credit Card Applications
Posted in Finance on 08/21/2010 09:14 pm by admin
Eric Morris asked:
There are many sources where you can file a first time credit card application. These include banks, credit companies and other agencies. The Internet is the easiest way to locate your preferred credit card company.
When applying for a credit card, most companies need information such as name, age, address, social security number, any former address of yours, occupation, employer, and annual household income. These details are adequate for the credit company to verify your credit history, which is the major criterion for approval or rejection. Annual percentage rate (APR) often varies with your credit score. That is, a high score will get you a low APR.
Most first credit card application forms contain certain clauses written in fine print. Company salesmen are often outspoken about the advantages of their transactions. But these fine prints often carry conditions that are disadvantageous to you. One important thing to check is the APR. Most credit companies tempt you with a low initial APR score. Remember that it is the long term APR you should weigh most, not the short term.
A US citizen who is 18 years of age or older (the limit is lower in some states) has the legal right to demand a credit card with any US bank. Generally, credit card providers do not want a bank account to get a card. It is also possible to request many credit cards at a time. But multiple applications can affect the credit score negatively.
With great competition existing in the credit card market, most credit card providers look for an easy means to attract new businesses. They provide special gifts on many occasions such as Christmas and holiday shopping seasons.
Debra
There are many sources where you can file a first time credit card application. These include banks, credit companies and other agencies. The Internet is the easiest way to locate your preferred credit card company.
When applying for a credit card, most companies need information such as name, age, address, social security number, any former address of yours, occupation, employer, and annual household income. These details are adequate for the credit company to verify your credit history, which is the major criterion for approval or rejection. Annual percentage rate (APR) often varies with your credit score. That is, a high score will get you a low APR.
Most first credit card application forms contain certain clauses written in fine print. Company salesmen are often outspoken about the advantages of their transactions. But these fine prints often carry conditions that are disadvantageous to you. One important thing to check is the APR. Most credit companies tempt you with a low initial APR score. Remember that it is the long term APR you should weigh most, not the short term.
A US citizen who is 18 years of age or older (the limit is lower in some states) has the legal right to demand a credit card with any US bank. Generally, credit card providers do not want a bank account to get a card. It is also possible to request many credit cards at a time. But multiple applications can affect the credit score negatively.
With great competition existing in the credit card market, most credit card providers look for an easy means to attract new businesses. They provide special gifts on many occasions such as Christmas and holiday shopping seasons.
Debra
Read This Before Filling Out A Student Credit Card Application
Posted in Finance on 08/10/2010 04:27 pm by admin
Morgan Hamilton asked:
Most kids can’t wait to get that first credit card. While it can be an exciting moment in a young adult’s life, it is not something that should be rushed into without doing some homework first (after all you are students). Research the criteria and terms of the card, set some limits for yourself and, if applicable, admit that you’re not ready for the responsibility. The purpose of this article is to discus the questions you should ask yourself before filling out a student credit card application.
Am I Old Enough? This one may seem like common sense but every year credit card companies send pre-approved applications to seventeen years olds enrolled in college. If you are not 18 than it is not legal for you to have a credit card, even if the company sends you a application.
Are The Terms Reasonable? The main terms you want to look at are the annual percentage rate (APR), the late and overdraft fees, the grace period offered by the company, and whether or not there is an annual fee attached to the card. The APR on student credit cards usually aren’t very low so just shop around the lowest you can apply for. Late and overdraft fees (which you shouldn’t have to pay if you stay responsible) are usually pretty much the same. Avoid cards with no grace period since you’ll end up paying too much in interest and never get a card with an annual fee.
When Will I Use This Card? Idealistically you should only use your card for emergencies. Get a debit card or pay cash for everyday purchases and impulse buys (if you can afford it). If you state that you will only use the card for emergences, go one step further and define what an emergency is. If you consider a pizza craving on Friday night an emergency, stay away from credit cards for a while. Remember to do this before filling out the student credit card application, not after you have the card in hand when the temptation may be too great to resist.
Can I Really Handle This? In other words, have you been responsible in the past? Have you usually been good with money, saving until you really needed or wanted something? Or does money seem to burn a hole in your pocket until you just have to spend it on something, anything at all?
Judy
Most kids can’t wait to get that first credit card. While it can be an exciting moment in a young adult’s life, it is not something that should be rushed into without doing some homework first (after all you are students). Research the criteria and terms of the card, set some limits for yourself and, if applicable, admit that you’re not ready for the responsibility. The purpose of this article is to discus the questions you should ask yourself before filling out a student credit card application.
Am I Old Enough? This one may seem like common sense but every year credit card companies send pre-approved applications to seventeen years olds enrolled in college. If you are not 18 than it is not legal for you to have a credit card, even if the company sends you a application.
Are The Terms Reasonable? The main terms you want to look at are the annual percentage rate (APR), the late and overdraft fees, the grace period offered by the company, and whether or not there is an annual fee attached to the card. The APR on student credit cards usually aren’t very low so just shop around the lowest you can apply for. Late and overdraft fees (which you shouldn’t have to pay if you stay responsible) are usually pretty much the same. Avoid cards with no grace period since you’ll end up paying too much in interest and never get a card with an annual fee.
When Will I Use This Card? Idealistically you should only use your card for emergencies. Get a debit card or pay cash for everyday purchases and impulse buys (if you can afford it). If you state that you will only use the card for emergences, go one step further and define what an emergency is. If you consider a pizza craving on Friday night an emergency, stay away from credit cards for a while. Remember to do this before filling out the student credit card application, not after you have the card in hand when the temptation may be too great to resist.
Can I Really Handle This? In other words, have you been responsible in the past? Have you usually been good with money, saving until you really needed or wanted something? Or does money seem to burn a hole in your pocket until you just have to spend it on something, anything at all?
Judy