Credit Card Application

Andrea Stiles Pullas asked:




What is an ITIN?

An ITIN is assigned by the Internal Revenue Service (IRS) to individuals who are not eligible for a Social Security Number (SSN) but have earned taxable income. You can apply for an ITIN when filing taxes or when opening a savings account in the United States. ITINs are nine digit numbers, similar to the SSN, that begin with the number 9 and are generated to be used as identification for tax purposes.

Aside from tax payments, an ITIN can also be used to access financial services. Some banks may take the ITIN as part of your identification when you apply for a bank loan or credit card. However, there are limitations to the use of an ITIN from a legal standpoint. The ITIN cannot replace a Social Security Number (SSN), especially when it comes to working rights. The placement of on ITIN on work documents constitutes fraud.

Using an ITIN to Build Credit

Many financial institutions will accept an ITIN as a form of identification to apply for loans and credit cards. By using your ITIN number to apply for loans or credit cards you can begin to establish a credit history in the United States.To make sure that your records get reported correctly with credit reporting agencies, it is important to understand how the agencies operate. The three largest credit bureaus, TransUnion, Experian, and Equifax, compile a person’s credit history by obtaining information from their creditors such as credit card companies and financial institutions.

They use personal information, such as an SSN, birth date, address, and full name to compile a credit report for each individual. An SSN is a unique number and helps the agencies recognize and verify identity when receiving personal credit report information from

creditors.

When the bureaus receive credit information about an individual with an ITIN number it is possible that they will utilize a combination of their name and address to verify their identity. Therefore, if you are building a credit history with an ITIN number, be sure to always use the same spelling and your full name each time you apply for credit. For example, if Carlos Diaz opens a credit card with Chase and then opens a credit card with Citibank as Carlos Ramon Dias, there may be confusion. The credit agencies might create two different

credit reports – one for Carlos Diaz and one for Carlos Ramon Dias. In addition, each time you change your address it is best to update it with each creditor to ensure that information from your creditors is reported correctly.

Tip: Tax season is a great time to apply for your ITIN. Many free tax preparation sites for lower income individuals will help you apply for free.

Sources:

www.irs.gov

www.nedap.org

Melinda

Marissa asked:


Here’s the deal.

I had just turned 18 and sent in at least 7 applications for credit cards before knowing it was bad for credit.

One time I went over my credit limit on one credit card and paid the fee and never had it happen again. (this was my 3rd month of owning the card).

I had 3 credit cards from major companies to begin with and got rid of one after problems with the company (Capital One) an my dad has me as an authorized user on his Shell Gas Card. I was an authorized user on my moms Old Navy Card.

Will keeping my balances low, paying everything on time. (I’ve never once been late), help repair everything in the long run, down the road at least 4 years when I need to get an apartment, auto loans, etc?
I’m still 18…just a few months older and hopefully a bit wiser
The reason I am closing one of the credit cards is that Capital One has been charging me for a service I do not use and upon further research have read that Capital One does not report my credit limit to the credit bureaus so it looks bad and negatively impacts my credit. I was thinking Im better off getting rid of it early before more damage is done.

ROMAN

Mario Churchill asked:


Even with bad credit, you can still have a chance of obtaining a credit card of your choice just as long as you make the right noises and of course create the right impression.

How to Impress When Applying for a Credit Card

Creating a favorable impression depends on the type of application process you’ll be undergoing. Online credit card applications are usually no-nonsense processes that only accept verifiable facts and figures and make no consideration at all for the individual’s personality or situation.

Personal credit card applications, on the other hand, can be divided into two classifications. If you were approached by a credit card representative, you must make sure that you display just the right amount of interest in his offer, never mind if you’re truly eager to own a credit card. You must successfully convince the other person that although you’ll be happy about owning a credit card, you won’t be terribly affected if you don’t get one in the end.

If you’re the one who initiated the credit card application process, your interest is automatically obvious so hiding it would be a moot point. The next step then is convincing your interviewer that there’s no reason for them to reject your application.

Step 1 – Obtain a Copy of Your Credit Report

Don’t rely on the more affordable yet less accurate services of little-known credit bureaus. Go directly to the Big Three – Equifax, TransUnion, and Experian. It will cost you a bit of money but the price’s worth it considering that you’ll be able to use the information on it for various purposes.

Upon receiving your credit card report, check if there are any errors, inconsistencies, or invalid data you should report. If there’s none and you still have bad credit, you have two choices: firstly, you can repair your credit either by yourself or with the help of a credit repair company and wait for your credit to improve before applying for a credit card; or secondly, you can apply right away and look for a credit card company that’s willing to overlook your past transgressions.

Step 1 – Prepare All the Necessary Documents

Time is precious for everyone, and your credit card interviewer will appreciate it if you attend your meeting prepared with all the necessary documents. This includes but is not limited to proof of income and employment such as pay slips and income tax reports, business license papers if you own a business, bank account statements and any other financial document in your keeping.

Step 3 – How to Handle the Interview

Dress well. You don’t need to dress too seriously or ostentatiously, but you do need to make a more than presentable appearance, one that will convince your interviewer that you’re a dependable and responsible individual, one who’s mature enough to handle the responsibilities of owning a credit card.

Be on time. When we say on time, it doesn’t mean beating the clock by a second. Instead, be at the appointed place fifteen to twenty-minutes prior to your scheduled meeting.

Be honest about your situation. If you have bad credit, provide a clear and truthful explanation as to why you ended up that way.

Lastly, don’t be too shy or boastful about your assets, financial or otherwise. You need to be practical about your assets and use them to your advantage. If you’re diligent and willing to promise that you’ll always on time, don’t be shy to state the reasons why your interviewer should trust your word.



AUSTIN