Help me out with the terminology. I want to get a credit card, but don't know what to look for. What is APR? and the other terms they use & how does the credit score develop?
2006-07-30 09:27:26 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
By the way, I don't have credit history. Is this necessary when trying to get a credit card. What percentage should I look for an ongoing rate?he
2006-07-30 09:34:53 · update #1
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good luck!
2006-08-02 15:51:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It depends on how you're going to use the card. If you're going to pay off the balance every month, which is wise since then you don't get hit with the horrendous interest that credit cards charge, then you don't really care about interest rates - care more about things like annual fees and possible rebates or rewards.
If you expect to carry a balance much or even some of the time, then the ongoing rates are what you should look at.
APR stands for Annual Percentage Rate, which is a standard calculation that lets you compare rates across lenders. There are a lot of different ways to calculate annual interest, so this standard lets you really compare.
Your credit score develops as you have credit and use it wisely (will give a good credit score) or run up bills you can't/don't pay or have difficulty paying and pay late, and end up owing large amounts for your income level (will give a low credit score). A good credit score will make it possible for you to get additional credit when you want to buy something. A poor score will make it difficult or impossible for you to get credit later, or will cause you to pay much higher interest on future loans
2006-07-30 09:45:33 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Christian.
Develop the discipline to pay off your credit card every month. Never carry a balance.
Then it doesn't matter which credit card you get...go for one that gives you bonus miles or something.
If you pay off your card every month, then you get a "grace period" meaning the balance does not start accruing interest for a certain number of days after the statement date. Once you have a balance you longer get a grace period. Interest starts accruing the moment you make a charge.
If you find that once in a while you do carry a balance more than a month, go for a card with the lowest ongoing rate.
As far as developing a credit score, there are several things you can do to make sure you have a good credit score. The exact formula of the credit score is confidential, but here are a few things you can do to make sure yours is high.
1. PAY YOUR BILLS ON TIME.
2. PAY YOUR BILLS ON TIME.
3. PAY YOUR BILLS ON TIME.
4. Don't have too many credit cards/loans. (2 to 3 credit cards are all you need.)
5. Don't max out any of your credit cards.
6. Don't apply for multiple cards/accounts in a short time frame.
If you follow these 6 (errr...4) rules, you should have a very good credit score, irrespective of your level of income.
Finally, you should run credit report a few times a year and check to make sure the info is accurate. Go to www.freecreditreport.com. Each company is required to give you a free credit report once a year. If stagger the requests, you can pull one every 4 months for free to make sure the info is accurate and up to date.
Good luck.
2006-07-30 10:09:25 · answer #3 · answered by Stephen B 3 · 0⤊ 0⤋
It depends on the rate after the promotional period. If the normal rate (after promo peirod) is somewhat close to the lowest on-going rate you can fined, then why not take advantage of the low promotional rate for a while?
However, do realize that if you are ever late or missed a payment, the credit card company can increase your rate. In fact, any defaulted account on your credit report may increase your credit card interest rate even if it is not the same company.
2006-07-31 05:45:38 · answer #4 · answered by cwlindly 1 · 0⤊ 0⤋
You want to get a low ongoing rate. The introductory rate is just to hook you in. APR means annual percentage rate.
Credit score develops from your establishing good paying habits. Pay off your credit card each month.
2006-07-30 09:31:58 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Try this website to compare credit card it has a list of 100 credit card http://www.bestcreditrates.net
2006-07-31 15:53:03 · answer #6 · answered by BIjan 2 · 0⤊ 0⤋
I would say 0 intrest pay on time and don,t miss payments to them hope this helps
2006-07-30 09:40:03 · answer #7 · answered by pattibcacl 6 · 0⤊ 0⤋