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Credit Card Applications 101
Credit cards are ubiquitous and relatively easy to obtain. The process involves filling out a credit card application form, which is a relatively straightforward process. All the same, it is advisable to have an idea of how credit cards work and the right way of filling out a credit card application.
An individuals credit history has a major bearing on the approval of his credit card application. Credit card companies can access an individuals credit history from various credit reporting companies. Applicants too should carefully read the application form and ask relevant questions about the credit card company. Unless the credit card is from a company that one is already doing business with, it is advisable to get an idea of their customer service and check for information on the Better Business Bureau. The Federal Government requires that the credit card applications elaborate the terms of credit clearly for the benefit of the applicant. This makes it easy for applicants to arrive at a decision regarding the right credit card for their circumstances.
Since credit card usage varies between people, there are different types of cards available; however, for a majority of people a low interest rate credit card works best. The credit card application mentions whether the APR is fixed or variable. The variable rate varies with the prime rate fixed by the Federal Reserve. A variable APR may not be a good idea for those who carry their credit balance forward. Other features such as the annual fees, grace period, and transaction charges should be understood. This helps in comparing offerings by the various card companies and in understanding the compatibility of these offerings with ones lifestyle.
After approval of the application, the card is mailed to the individual. It is advisable to read the accompanying literature carefully and file it safely for future reference.
In order to understand the various terms used in a credit card application and to get other helpful advice, an individual can research on various websites that offer easy-to-understand explanations.
How do payday cash advances work?
Payday cash advance loans are essentially short-term loans that may use a borrowers paycheck as collateral. Working individuals who are mainly dependent on their paychecks for money may occasionally find themselves in a spot where an emergency requirement arises and the next paycheck is still far away.
In such instances, lenders offer cash advances to adult individuals with an assured net income of at least $ 1000 per month. The loan amount is to be repaid by the borrower in full on the next payday. Cash advances charge a rate of interest of up to 20% and should ideally be taken in small amounts so that they can be repaid easily. The high rate of interest is charged as these loans are short term and given without a credit check. Most lenders offer a first-time payday cash advance of up to $1000.
The process of applying for and obtaining a cash advance is automated and can be carried out online. The borrower is required to submit a short application, which is usually replied to via email. The money is transferred to the borrowers account upon the signing of the loan agreement and submission of postdated checks. Alternatively, the lender can directly withdraw money from the borrowers account on the designated due date. Inability on part of the borrower to pay the loan in full may imply a violation of the loan agreement which can prompt the lender to demand non-sufficient funds (NSF) costs. If a lending agency chooses to refer a borrowers poor payment record to the credit bureau, it can harm a persons credit score and affect his chances of obtaining a loan.
Ideally, a person should refrain from taking payday cash advances often as these incur a high rate of interest. They should be kept as the final option when loans from friends cannot be availed and credit cards cannot be used. Factors that affect the approval of a payday cash advance include federal and state lending regulations, net income, and existing previous payday advances or other loans. Usually payday cash advances are scheduled for payment 15-18 days from the application date. Individuals can avail only one payday cash advance at a time from a given lender.
Lenders allow for an extension of the payment date and deduct an extension of payment fee on the original due date. There is a limit to the number of extensions allowed by the lender. Most allow up to four extensions of the payment date. The next scheduled date for repayment is usually the date of receiving a paycheck.