Previous Balance. As the name suggests, this balance is simply the amount that you owed at the end of the previous billing period. Payments, credits, or new purchases made during the current billing period are not taken into account. Some creditors also exclude unpaid finance charges in computing this balance. If you do not understand how the balance on your account is computed, ask the card issuer. (An explanation of how the balance was determined must appear on the billing statements the card issuer provides you and on applications and pre-approved solicitations the card issuer may send 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.
Cash Advance
Many credit cards allow cash advances When you get a cash advance off your credit card, you either use your card to get cash from your bank teller or ATM machine, or you use one of the paper checks that came with your credit card. A cash advance can help you when you are short on cash and desperately need it, but it can also cost you much more than a regular charge on your credit card. There is usually an initial fee just for getting a cash advance and a higher interest rate on the cash amount borrowed. These fees add to your balance owed and can make your balance grow more each month than you anticipate. For these reasons, you should limit cash advances to emergency situations.
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 youve 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.
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!
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.
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.
What is APR?
Annual Percentage Rate. The "annual percentage rate," or APR, is disclosed to you when you apply for a card, again when you open the account, and it is also noted on each bill you receive. It is a measure of the cost of credit, expressed as a yearly rate. The card issuer also must disclose the "periodic rate" -- that is, the rate the card issuer applies to your outstanding account balance to figure the finance charge for each billing period
What is Consumers Liability for Unauthorized charges?
If you have a problem with merchandise or services that you charged to a credit card, and you have made a good faith effort to work out the problem with the seller, you have the right to withhold from the card issuer payment for the merchandise or services. You can withhold payment up to the amount of credit outstanding for the purchase, plus any finance or related charges. If the card you used is a bank card, a travel and entertainment card, or another card not issued by the seller of the defective merchandise, you can withhold payment only if the purchase exceeded $50 and occurred in your home state or within 100 miles of your billing address. If these conditions do not apply to you, you may want to consider filing an action in small claims court -- an informal legal proceeding that can be used to settle disputes. While the maximum amounts that can be claimed or awarded differ from state to state, most small claims courts hear cases involving amounts ranging from $25 to $2,000. Some states have recently raised their limits to $5,000. Check Check your local telephone book under your municipal, county, or state government headings for small claims court listings. Shop around for credit card terms that are best for you. * Make sure you understand the terms of a credit card plan before you accept the card. Review the disclosures of terms and fees that must appear on credit-card offers you receive in the mail. * Pay bills promptly to keep finance charges as low as possible. * Keep copies of sales slips and promptly compare charges when your bills arrive. * Protect your credit cards and account numbers to prevent unauthorized use. Draw a line through blank spaces above the total when you sign receipts. Rip up or retain carbons. * Keep a list of your credit card numbers and the telephone numbers of each card issuer in a safe place in case your cards are lost or stolen.
How will you know if someone has stolen your identity?
should you throw them all away immediately? Not necessarily. Should you gleefully accept all those great offers and the individual perks and free gifts that come along with the cards? No. Instead, you should carefully consider each card and what it offers you long term. This way the card (or cards) you do sign on with will work for you, rather than become a burden to you financially.
