How to Choose the Best Credit Card
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Posted: Wed Aug 18, 2004 2:08 pm
Post subject: How to Choose the Best Credit Card
CEH
Date: 6/2/2001 8:27 am CDT
How do I choose which card to apply for?
All the platinum cards featured here look great, but do I really have a chance of getting approved for one? I might just apply and find out, but apparently I risk A- getting stuck with a different card than the one I hoped for, possibly with nonrefundable fees; or at the very least, B- damaging my credit report.
I've no idea what I rate because on the one hand I'm just a graduating student, but on the other I've been able to slowly build up the limit on the card I already have to $6000. I'd like a new card because my APR is now at 19.4, and while I'm between school and a job I'll be running a high balance. Do I have a chance at a better card? If so, which one?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Wed Aug 18, 2004 2:09 pm
Post subject: How to Choose the Best Credit Card
CEH
Date: 6/2/2001 12:45 am CDT
Okay, I've done lots more research, and learned nothing useful that is definite. But I do have one simple hypothesis: no current employer = no card approval. Exception: worthless "student" credit cards.
Is this correct? Does my credit history count for nothing in this case?
Chris
PS- for anyone with a reasonable income looking for a great balance transfer deal, you might check out http://www.pulaskibank.com/credit_card/ . read the faq for an idea of the depth of their background check though. (this is not an endorsement, just a research tip).
archive
Posted: Wed Aug 18, 2004 2:09 pm
Post subject: How to Choose the Best Credit Card
Carlos de la Cayo
Date: 6/2/2001 7:56 pm CDT
Hello, Chris!
In response to your question: not necessarily. For example, you can be self-employed, without an employer, and get a decent credit deal with some banks. It is true that some banks ask for employer current address, employer telephone number, time working with current employer, etc; however, other banks just ask for the name of the employer (where hypothetically you can write self-employed) and telephone number. It is no wonder that the latter is leanient when it comes to checking emploment status. At any rate, in order to do this, you need to have established credit. You can start off with cards from department stores, use them for some months, and then you will be ready to apply for a decent credit card.
archive
Posted: Wed Aug 18, 2004 2:10 pm
Post subject: How to Choose the Best Credit Card
dave
Date: 6/3/2001 0:43 am CDT
Chris--
It may be that having good credit is a necessary but not sufficient condition to getting a decent balance transfer offer. Also, since you have only one revolving line, the good credit that you have may not be substantial enough for prime offers from other companies.
You would have been in a better position if you had been laying the foundation for this about a year ago. I say this with perfect 20/20 hindsight, of course!
The biggest problem is that you are not working. If you have sufficient income from other sources, that may help. Otherwise, I think you're in a tough position.
Citibank offers a 2.9 rate for nine months on balance transfers on their platinum select card. I think their credit standards are a bit more relaxed than many other companies offering plat. cards. After the teaser rate period expires, the ongoing rate may be a bit high, but you can negotiate it down after making several ontime payments. I called and got mine down from 15.4 to 11.9 without any problem at all. Minimum income requirement is 8K but credit lines may be as low as 1K so this may not benefit you much if your income is not adequate for a much higher credit line.
You could try talking to your card company about lowering the 19.4 rate. Many companies will do this for good customers though it helps to be in a good bargaining position before you call. You are more likely to get an APR reduction if your balance is low relative to the credit limit. You may bluff and tell them you are flooded with preapproved offers for cards with lower rates. Don't threaten to close the account though because they just might do it.
Another option is to become an authorized user on someone else's card (such as a parent). The card will be reported as your credit and you can build further positve history that way. This may trigger better offers within 6 months.
You can apply for a few cards just to see what happens. The impact of a few inquiries on your credit report is minimal and practically non-existent after six months.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Wed Aug 18, 2004 2:08 pm
Post subject: How to Choose the Best Credit Card
CEH
Date: 6/2/2001 8:27 am CDT
How do I choose which card to apply for?
All the platinum cards featured here look great, but do I really have a chance of getting approved for one? I might just apply and find out, but apparently I risk A- getting stuck with a different card than the one I hoped for, possibly with nonrefundable fees; or at the very least, B- damaging my credit report.
I've no idea what I rate because on the one hand I'm just a graduating student, but on the other I've been able to slowly build up the limit on the card I already have to $6000. I'd like a new card because my APR is now at 19.4, and while I'm between school and a job I'll be running a high balance. Do I have a chance at a better card? If so, which one?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Wed Aug 18, 2004 2:09 pm
Post subject: How to Choose the Best Credit Card
CEH
Date: 6/2/2001 12:45 am CDT
Okay, I've done lots more research, and learned nothing useful that is definite. But I do have one simple hypothesis: no current employer = no card approval. Exception: worthless "student" credit cards.
Is this correct? Does my credit history count for nothing in this case?
Chris
PS- for anyone with a reasonable income looking for a great balance transfer deal, you might check out http://www.pulaskibank.com/credit_card/ . read the faq for an idea of the depth of their background check though. (this is not an endorsement, just a research tip).
archive
Posted: Wed Aug 18, 2004 2:09 pm
Post subject: How to Choose the Best Credit Card
Carlos de la Cayo
Date: 6/2/2001 7:56 pm CDT
Hello, Chris!
In response to your question: not necessarily. For example, you can be self-employed, without an employer, and get a decent credit deal with some banks. It is true that some banks ask for employer current address, employer telephone number, time working with current employer, etc; however, other banks just ask for the name of the employer (where hypothetically you can write self-employed) and telephone number. It is no wonder that the latter is leanient when it comes to checking emploment status. At any rate, in order to do this, you need to have established credit. You can start off with cards from department stores, use them for some months, and then you will be ready to apply for a decent credit card.
archive
Posted: Wed Aug 18, 2004 2:10 pm
Post subject: How to Choose the Best Credit Card
dave
Date: 6/3/2001 0:43 am CDT
Chris--
It may be that having good credit is a necessary but not sufficient condition to getting a decent balance transfer offer. Also, since you have only one revolving line, the good credit that you have may not be substantial enough for prime offers from other companies.
You would have been in a better position if you had been laying the foundation for this about a year ago. I say this with perfect 20/20 hindsight, of course!
The biggest problem is that you are not working. If you have sufficient income from other sources, that may help. Otherwise, I think you're in a tough position.
Citibank offers a 2.9 rate for nine months on balance transfers on their platinum select card. I think their credit standards are a bit more relaxed than many other companies offering plat. cards. After the teaser rate period expires, the ongoing rate may be a bit high, but you can negotiate it down after making several ontime payments. I called and got mine down from 15.4 to 11.9 without any problem at all. Minimum income requirement is 8K but credit lines may be as low as 1K so this may not benefit you much if your income is not adequate for a much higher credit line.
You could try talking to your card company about lowering the 19.4 rate. Many companies will do this for good customers though it helps to be in a good bargaining position before you call. You are more likely to get an APR reduction if your balance is low relative to the credit limit. You may bluff and tell them you are flooded with preapproved offers for cards with lower rates. Don't threaten to close the account though because they just might do it.
Another option is to become an authorized user on someone else's card (such as a parent). The card will be reported as your credit and you can build further positve history that way. This may trigger better offers within 6 months.
You can apply for a few cards just to see what happens. The impact of a few inquiries on your credit report is minimal and practically non-existent after six months.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 1:31 PM
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