Earn 5,000 Membership Rewards® bonus points when you spend $500 in 3 months - redeemable for a $50 gift card!
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The Membership Rewards program also lets your transfer points to 17 frequent flyer programs: 1 point = 1 frequent flyer mile or frequent guest credit for most programs.
The following credit cards may be able to help build, rebuild or re-establish your credit if you make on-time payments with all of your creditors and maintain your account balances below the credit limits.
Site FAQ Frequently Asked Questions
What is the difference between an additional card and co-signer card?
An additional card is a card you get on your personal credit account with another person?s name on it. This means that the person now has access to your credit account as if it is their own account and can charge as much as they want without your permission beforehand. In addition, this person is not held accountable by your creditor for making any payment on the account. This responsibility falls on you, the account holder. As a result, no matter how much this person charges on your card, you have to pay for it?even if the person promises to pay you back and doesn?t. A cosigner card is a credit card someone applies for and gets a cosigner to sign on. Essentially, it is the applicant?s credit account, but if they stop making payments, the cosigner is then responsible for the account. The history of the account goes on both person?s credit reports. The cosigner will have to make special arrangements with the creditor before cosigning to get monthly statements on the account or reports of late payments. Otherwise, the cosigner will not have access to the account information. If you do cosign on an account, remember that you assume equal liability.
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.
Using You Credit Card Card Abroad
taking your credit cards with you on your next overseas trip can make traveling easier. You dont have to carry as much cash or get foreign currency you may not use, and you have a record of all your purchases. Most major credit cards are accepted worldwide, and in many countries credit cards are widely accepted. If your credit cards are lost or stolen and used by a thief, you generally cannot be held responsible for more than $50 in fraudulent charges. That makes carrying credit cards safer than carrying a lot of cash. Some credit card companies will replace your cards (sometimes overnight) if they are lost or stolen while youre traveling another plus.
Precautions for Overseas Trip
Before you go overseas, make a list of your credit cards and the international phone numbers to call in case they are lost or stolen. U.S. toll-free numbers cannot be reached directly from overseas, so make sure you have a number that can be reached from abroad. At the end of this brochure is a place for you to write down the phone numbers of your credit card issuers. Leave one copy of the list you make with a trusted friend or relative and keep the other copy with you, in a safe place separate from your cards. That way youll be able to quickly contact your credit card companies for replacement cards if you lose yours. If your cards have credit limits, check how much credit you have available and pay down balances or request higher credit limits if you need more.
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.
Shopping Around for the Right Card
When shopping for a credit card, you probably will want to look at other factors besides costs- such as whether the credit limit is high enough to meet your needs, how widely the card is accepted, and what services and features are available under the plan. You may be interested, for example, in "affinity cards" -- all-purpose credit cards that are sponsored by professional organizations, college alumni associations, and some members of the travel industry. Frequently, an affinity card issuer donates a portion of the annual fees or transaction charges to the sponsoring organization, or allows you to qualify for free travel or other bonuses.
Credit Limit
Every credit card has a credit limit. It can be anywhere from a few hundred dollars to $250,000. There are even cards, such as the MBNA Quantum Card, that has a credit limit of $1 million. This limit is all you are allowed to spend. Once you charge the full limit on your card, your card can not be used until the balance is paid down some. The more you charge on your credit card, the higher your minimum monthly payment will be. Some cards do not prevent you from charging over your credit limit. If you do so, you will find your next monthly bill has over the limit fees added to your balance. You will then be required to pay the total amount over the limit and all the penalty fees in order to avoid even more over the limit fees the next billing cycle. (Change to: You will then be required to pay at least an amount you charged over credit limit and all the penalty fees, in order to avoid even more over the limit fees the next billing cycle) As you can see, your credit card bill could easily grow out of control if you get over the limit. The moral is, stay under your credit limit!
Annual Fee
some credit cards also have annual fees, which can run as high as $75-$100. Fortunately, the majority of credit card offers for students have an annual fee of $0. Think of it as membership fee, which is tacked onto your balance once a year just for having the credit card. You are expected to pay this fee, and it will collect interest as part of your balance owed. However, if you pay your balance owed by the due date, you will not have to pay any interest
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.
Why Does APR fluctuate?
some credit card plans allow the card issuer to change the annual percentage rate on your account when interest rates or other economic Indicators (called indexes) change. Because the rate change is linked to the performance of the index, which may rise or fall, these plans are commonly called "variable rate" plans. Rate changes raise or lower the amount of the finance charge you pay on your account. If the credit card you are considering has a variable rate feature, the card issuer must tell you that the rate may vary and how the rate is determined, including which index is used and what additional amount (the "margin") is added to the index to determine your new rate. You also must be told how much and how often your rate may change.
