I'm a foreigner and need a credit card to establish credit. I have a Social Security number, but I?m not a U.S. resident. Are there any cards that I may apply for and get approved?
There are many cards you can apply for, as long as you have a social security number. However, you may find it difficult to get approved because you do not have a credit history in the U.S. To start building a credit history in the U.S., you need to obtain credit from a credit card company or bank that reports to all three of the major credit bureaus (Experian, Equifax and TransUnion). You might have to consider credit cards with higher interest rates, security deposits, lower credit balances or application fees. Read all the terms and conditions thoroughly to protect yourself from a card that will cause you more harm than good. If you have a checking or savings account, apply for your bank?s credit card. They may approve you since you have a financial history with them. Also, they may add a stipulation that late or missed payments will be withdrawn automatically from your checking or savings account. Remember: always avoid any credit card offers that charge high fees. There are plenty of options out there to help you establish credit. You do not have to go into high debt to do so. Once you establish a positive credit history, you can then get approved for credit cards that cost you less and offer you more.
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.
What type of information do credit bureaus collect and sell?
Credit bureaus collect and sell four basic types of information. Identification and employment information Your name, birth date, Social Security number, employer, and spouses name are routinely noted. The CRA also may provide information about your employment history, home ownership, income, and previous address, if a creditor requests this type of information. Payment history Your accounts with different creditors are listed, showing how much credit has been extended and whether f paid on time. Related events, such as referral of an overdue account to a collection agency, may also be noted. Inquiries CRAs must maintain a record of all creditors who have asked for your credit history within the past year, and a record of those persons or businesses requesting your credit history for employment purposes for the past two years. Public record information. Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may appear in your report.
I wanted to get a credit card but I do not have any credit history. Are there other ways to build a credit history?
To someone seeking credit for the first time, it may seem like a vicious circle: You cant get credit without a credit history, and you cant establish a credit history without credit! Frustrating, isnt it? Interestingly, some institutions only look only at your salary, job and the other financial information that you put on the application to determine if you qualify for their card. However most will be interested in your track record -- How have you handled other debts -- and will ask to see your credit report.
To get the story on you, institutions will turn to information provided by credit-reporting agencies or credit bureaus like Equifax that collect, store and quantify information about borrowers. The records show your credit history -- how much credit youve received and how faithfully youve repaid. Fortunately, even if youve never had a Mastercard, American Express, Visa, Discover, or other major credit card, you can still build a good credit history:
? Open a checking account or savings account or both. Although not part of your credit history, your accounts may be checked by potential lenders as evidence that you have money and know how to manage it.
? Cancelled checks can be used to show that you pay utilities or rent bills regularly, a sign of reliability.
? Apply for a department store credit card. Stores dont ask for credit histories as often as major credit card institutions, so you should be able to get a card based on your annual salary. Then, repaying your store bills on time becomes a major ""positive"" in your credit history.
? Look for a financial institution that will allow you to deposit funds to serve as collateral for a credit card. Some institutions issue a credit card with a credit limit equal to the amount on deposit. These cards are relatively easy to obtain and as with your department store card, paying these bills on time will enhance your credit history.
? If you dont have a credit history because you?re new in town, request a summary of any credit record kept by a credit bureau in your former town. Dont know whom to contact? Ask the bank or department store in your former town for the name of the agency it reports to.
You may already have a great credit history and not realize it. If you do, its time to ""comparison shop"" the credit card companies and find out who has the best deal to offer you.
I?'m trying to find a credit card where I can co-sign for a friend. She has a permanent job, but no credit history.
Any credit card that allows for a cosigner is a card your friend can consider applying for. When an application asks for a cosigner, it does not limit whether or not that cosigner is a friend. Both you and your friend need to remember that if you do cosign an account for her, both of you will then be responsible for keeping the account current. This means that if she stops paying, you will be expected to pay. However, if the account goes into default or accrues penalties for any reason, it will be recorded on both of your credit histories. Cosigning for your friend should be taken seriously and carefully thought through. You must be sure that you can afford to pay on the account if your friend does not. Since you will not have any control over how much she spends, you need to be prepared for the largest sum possible. In addition, any late fees or other penalties your friend accrues on the account will have to be paid by you once the creditor asks you to pay on the account. The cosigner rarely gets any kind of monthly statements, so you may not know there is a negative situation with the account until a creditor contacts you. You can sometimes get the lender to agree, in writing, to notify you if your friend begins to miss payments. This can notify you early if there is a problem. In each state, cosigners do have rights, so find out what your rights are as a cosigner before signing on the dotted line. You may be able to negotiate the terms of your liability on an account with the lender before cosigning. Explore this option ahead of time. Lastly, keep copies of all paperwork you sign in case these papers are needed in the future.
Automatic Online, On-time Payments
In the era of everything e-commerce, online banking is not trailing behind. Besides checking your account balance, you can now set up automatic payments to be made from your checking account. As far as the amount is concerned, you may elect to have a ?minimum due? or full payment withdrawn. This is an especially great feature for all of us who pay credit card bills late, and get slapped with a $29-$35 late fees. Call your bank today and ask whether it offers automatic payment service.
Correcting Billing Errors
Federal law provides specific rules that the card issuer must follow for promptly correcting billing errors. The card issuer will give you a statement describing these rules when you open the credit card account and, after that, at least once a year. In fact, many card issuers print a summary of your rights on each bill they send you.
When should credit card payments be credited?
A card issuer must credit your account on the day the issuer receives your payment, unless the payment is not made according to the creditors requirements or the delay in crediting to your account does not result in a charge. To avoid delays that could result in finance charges, follow the card issuers instructions about where to send payments. Payments sent to other locations could delay getting credit for your payment for up to five days. If you lose your payment envelope, look on the billing statement for the address for payments or call the card issuer.
Move the Due Date
Ever been short on cash right when your credit card bill is due? Still waiting for your payroll check? No problem. Call you credit card issuer and negotiate a new due date. Most likely, your request will be honored. A new due date will allow you to better manage your cash flows, so that you have enough cash (in bank, or on hand) to pay your bills.
Do I have a right to know whats in my report?
Yes, if you ask for it. The CRA must tell you everything in your report, including medical information, and in most cases, the sources of the information. The CRA also must give you a list of everyone who has requested your report within the past year?two years for employment related requests.
