Applying for A Credit Card

1. Applying for A Credit Card By: Jamelle Horne

2. Building Credit Important because it allows you to purchase items that would not be accessible to you without good credit. Applying for loans becomes easier Purchasing Cars becomes easier Living arrangements in terms of buying a home Also a easier form of payment instead of carrying cash around

3. Steps to Obtain a Credit Card • Creating an account – You must go to any respective bank and create a revolving account. • This Grants the consumer a line of credit • Initially there is a credit limit put in place that forces one to stay under in terms of spending • As time passes and payments continue to be on time, the credit limit raises in terms of money

4. The Process… After opening the account, the consumer must provide past information of money issues and personal information in order to eligible to apply Having a checking account with the same bank is great way to have a chance of getting a credit card. Also banks are attracted to giving credit cards to college students. This is called a student credit card

5. Continued… Once you are eligible for a credit card you have to call the bank in order to activate the card. Once you are in the clear you are safe to make your first purchase. The plan is to make payments just as many times as you purchase items with your credit card.

6. Do’s & Dont’s Do’s Dont’s • Make sure you only make the “need” type of purchases • Let your credit be aware that you will not be able to make your monthly payment • NEGOTIATE A LOW INTEREST RATE! This is how banks make their money. • Make everyday purchases such as; food,gas,clothing. Leads to debt • Making the minimum payment each month • Close out a credit card without knowing how your credit will be impacted