Credit Cards Are Right You
The day you order a credit card, you are probably super excited to grab it fresh off the printing press so you can run to the shops and purchase things or login to a website and pay bills. Credit cards actually take time, and though you will receive your approval right away, you will not have access to the physical plastic money until you actually receive it in the mail. You can likely make purchases on the internet the same time you get approved, but it will probably signal something to the bank — you will reek of desperation, and they could possibly flag your account for immediate fraud activity as it can come off weird, especially if you are someone that the bank had to bend over backwards to approve.
Can you walk into a bank and walk out with a card? Probably not, but you can have the same impact with a line of credit that you can use to call the places you are interested in purchasing items from and having them run that line of credit immediately. That will likely be for massive purchases like buying a basketball team or a building or a home — in that case, the seller can call the bank to ensure that your line of credit is available for them to withdraw their money from it. A bank card, however, is a smaller line of credit that is not dependent upon you having a conversation with many people in the bank in order to receive the financial support you need.
You might need help paying your rent, and so your money will fly from your pockets quickly and easily, in which case, a credit card is probably not exactly what you need. A bank card is the right financial instrument for you if you can wait a few days to get the plastic money so that you can make the purchases you need to. This is why you should visit websites like kredittkortinfo.no/kredittkort-på-dagen/ to carefully evaluate and compare cards so you can make a mindful decision about which card you would like. In fact, the plastic money is ideal if you have no pressing financial matters so that you can be mindful to only use the card when you are certain you can pay off your debts as soon as the bill arrives, which will be at minimum 30 days. If you have a higher value credit card, the bill will be due in two weeks or in some cases, one week.
Applying For A Card
You are essentially applying for a loan or a line of credit, just in a smaller plastic portable piece of information that contains data about the loan you have been given by the bank. This will be determined by the credit score that you have when the bank checks one of the three credit rating companies allowed by the United States government. These companies have lost secure data, have competed in antitrust activities and have generally been highly corrupt and almost bacchanalian in their antics over the course of the last several decades. Should we continue to trust these companies who have taken so much from the American people? Unfortunately, we do not have much choice.
Yes, in the vein that something is wrong on your credit report, you have to do the work of having it removed from all agency reporting, as they are not legally required to have accurate information on you in their coffers. If this system seems unfair, well, it is. This is not why you have to wait a few days to get your plastic money even though you can be immediately approved. Your immediate approval is a function of some algorithm that the credit reporting agencies work with to determine what kind of borrower you are. If you think that is wild, you have to remember that in our late-stage capitalist society, you are constantly being evaluated by institutions that think they know who you are via the decisions you have made in the past, even if you have made mistakes that you have atoned for financially.
Your Financial History
Also, your repayment history, even though it is considered a part of your credit score, is often evaluated separately and as a result it is taken into consideration separately. For example, you could have paid off every cent of a credit card that you have had in the past, but if your repayment schedule was irregular, the bank could be concerned that you are unreliable and that might impact your ability to qualify for the card or the favorable interest rate you will receive or not. Yes, your repayment history could result in you getting a terrible interest rate because the bank has decided it simply does not trust you.
You might think that your income cannot offset these issues, but it can. If all the aforementioned tricky situations apply to you, if you are pulling in an income that reflects a tax bracket that far exceeds what you are borrowing. If that is the case, the likelihood that the institution will look past whatever financial indiscretions exist on your credit report is very great. If a multi millionaire had a difficult time paying back her credit allowances back when she was making pennies each day, it may not be fair to evaluate her current ability to pay things back by those previous metrics given that she is now a different person in a different place in her life.
Yes, people can grow and change financially and sometimes these institutions will recognize that and reward you for it. Otherwise, they might not, and you might not have as much negotiating power to make a case for your ability to repay your line of credit. But consider this tricky portion: you have to actually be trusted with credit to get credit, and you are often too young to make wise decisions with your credit until you are at least in your mid-twenties. Your brain is not done developing until you are twenty-five years old, and yet, we are trusted with massive student loans and credit cards as though that mental development has already happened.
Making Your Decision
At 18 we can buy guns and at 21 we can drink alcohol, but we cannot rent a car at an affordable rate until we are 25. So somehow, capitalism is able to self-regulate this issue when the corporation’s bottom line is affected: for example, these car rental companies have to refresh their stock every few years by purchasing new cars, and the likelihood that they will have to do that more often if younger drivers are on the road in their vehicles is very great. So, they are able to protect themselves when it counts, but when someone needs to take a chance on you, they are willing to allow you to engage in a predatory lending scheme at the young foolish age of eighteen.
This is why you have to search online for your credit card information and do your research carefully before you make a concrete decision about which company you will go with. Doing this research will be a good idea, because you will not regret finding out that a particular card does not have great points, perks and miles associated with it. The card might be one of those terrible cards that gives you certain blocked out dates that prevent you from using your points, perks and miles at those times or those locations, which are usually the most popular times of the year, rendering those points practically useless to you when you really need them. In that case, you might look back on your decision and regret your choice because you paid all these fees, interest and even more if you took cash out of the credit line, only to regret your decision in the end!
