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Monday, 12 March 2018

What is Credit Card Pre-Approval?

Unknown March 12, 2018 1

Getting those credit card pre-approval offers in the mail can be exciting, especially if it's an offer for a credit card with a low interest rates or an awesome rewards program. But, don't get too excited. If you've ever responded to a credit card pre-approval offer, then you already know the truth about pre-approved credit card offers: that you're not really pre-approved. That's right. You can still be denied for a credit card that you've been "pre-approved" for.

What Does Pre-Approved Mean?

Credit card issuers have a screening process to figure out which consumers might be a good fit for a particular credit card. In the screening process, the card issuer asks the credit bureau for a list of consumers who fit certain criteria, like those who have a certain credit score or have a certain number of accounts. If you meet the criteria, your name goes on the list and the credit card issuer sends you a pre-approval offer. Think of it as an invitation to apply for the credit card rather than a firm offer for the credit card.

Pre-approval doesn't affect your credit score, because the credit card issuer hasn't done a hard pull on your credit report. If you decide to apply for the credit card, the credit card issuer will do a credit check that will result in a hard inquiry. The inquiry that comes from your application could hurt your credit score depending on the other information in your credit report.

How to Find Pre-Approved Credit Cards

If you haven't received a pre-approved credit card offer in the mail, it doesn't necessarily mean you don't qualify for one.

Some credit card issuers make it easy to find out whether you've been pre-approved for a credit card. You'll typically enter only your basic information - your name and last four digits of your social security number - to see which credit cards, if any, you may qualify for.

These pre-approval checks typically only do a soft pull on your credit report which means it won't affect your credit score unless you ultimately decide to apply for a credit card.

American Express

Bank of America

Capital One

Chase

Citi

Discover

Merrick Bank

U.S. Bank

Proactively checking to see if you're pre-approved for a credit card can save you the trouble of applying for credit cards that are "out of your league" so to speak. This is important since new credit inquiries can affect your credit score and make it more difficult to get future applications approved.

Why Credit Card Pre-Approval Offers Aren't What They Seem

Even after receiving a pre-approved credit card offer, you still have to make an application, just as if you'd found the credit card on your own. Once you apply, the credit card issuer will take a closer look your credit history and the information on your application to decide whether you actually qualify for the credit card.

In the best case scenario, you're approved for the credit card with the same terms that were listed in the offer letter. A little less satisfying: you may be approved, but with less favorable terms than what were listed on the offer. For example, you may be approved for a higher interest rate or shorter promotional period.

A worse scenario is possible: you could be denied for the credit card completely.

Free Credit Scores After an Unfavorable Decision

If you're denied for a pre-approved credit card (or any credit card) or you're approved but for less favorable terms than you were offered because your credit score didn't meet the criteria, the card issuer will send a free copy of your credit score used in the decision.

You may also be entitled to a free credit report if you're denied because of information in your credit report. You'll have 60 days to request this free credit report.

You can use this opportunity to figure out what's hurting your chances of being approved and work to improve your credit score so if you decide to apply for a credit card in the future.

Don't Forget to Shop Around

The pre-approved credit card offer you receive may not be the best offer out there.

Before you respond, go online to check the credit card's most recent offers. You may find something better than the offer you received in the mail. Shop around can help you make sure you're getting the best deal. You may find a better credit card with another credit card issuer.

Compare the credit cards you qualify for based on rewards, perks, interest rate, and fees.

Stop Pre-Approved Credit Card Offers

If you no longer want to receive pre-approved credit card offers, perhaps because you receive too many of them, you can limit the offers you receive by mail. Simply opt out at optoutprescreen.com. You can opt-in again at the same website if you previously opted-out.

Opting-out line will stop many pre-approved offers - the ones based on pre-screenings through the major credit bureaus. However, you may still receive offers from companies you already do business with or from companies who got your information from somewhere besides the credit bureaus.

You can still use the major credit card issuers' online pre-approval tools to shop around for credit cards when you're ready to apply for a new credit card. This way, you're in the driver's seat when you're scouting for credit cards on your own.

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How to Get a Credit Card With Bad Credit

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People with bad credit have the fewest options for credit cards. That's because few credit card issuers want to take the risk of extending a credit limit they may not get paid for. The lower your credit score, the harder it will be to get approved for a credit card, but it's not completely hopeless. Though it may be hard, you can get a credit card with bad credit.

How Bad Is Your Credit Score?

You probably know you have bad credit because you've previously applied for a credit card, loan, or other credit-based service and have been denied.

If you haven't already, check your credit score to see where you stand exactly.

You may receive a credit score automatically in the mail after being denied credit if your credit score was the reason that you were denied. Otherwise, you can purchase your credit score directly from FICO via myFICO.com or through any of the three credit bureaus. Some credit card issuers, Discover and Capital One, make credit scores available to their cardholders. Alternatively, you can obtain free versions of your credit score from CreditKarma.com, CreditSesame.com, or Quizzle.

Beware of websites claiming to offer free credit scores as a gimmick to sign you up for a subscription credit monitoring service. If you have to enter your credit card number to get the "free" credit score, it's a sure sign that you're enrolling on a trial subscription and you'll be charged if you don't cancel.

Credit Cards for People With Bad Credit

There are very few credit cards aimed specifically at people who have bad credit.

The Capital One Classic Platinum approves applicants with credit scores as low as 577 according to CreditKarma.com. The card has a 22.9% regular APR and $39 annual fee. You may be able to get the annual fee waived if you ask.

Orchard Bank credit cards were previously a good option for people with bad credit.

However, the company who issued Orchard Bank cards (HSBC) was acquired by Capital One in 2012 and the Orchard Bank cards were discontinued.

Retail stores have a reputation for approving applicants who have bad credit. You have a better chance getting approved for a limited purpose credit card that can only be used at that store rather than a credit card backed by Visa or MasterCard. Be aware that retail store credit cards come with low credit limits and high interest rates. The best way to manage a card like this is to only charge a small amount and to pay your balance in full each month.

Be Willing to Pay a Deposit

Too many borrowers dismiss secured credit cards because the cards require a security deposit to be made against the credit limit. A secured credit card that reports to the major bureaus is better than having no credit card at all. Many secured credit cards can be converted to unsecured credit cards after a year of on-time payments.

If it's the security deposit that's keeping you from getting a secured credit card, start putting $50 in a savings account each month. In six months, you'll have $300 to put toward a credit secured credit card. Some of the money can be used to take care of the application fee and the rest can be put toward your credit card balance.

Yes, you'll have a low credit limit starting out, but that's true of unsecured credit cards for bad credit, too.

The Capital One Secured MasterCard accepts a security deposit as low as $49 or $99 for a $200 credit limit depending on your credit credit. If you have extremely bad credit, you'll have to pay the entire minimum $200 security deposit, but you can come up with that in four months by saving $50 a month.

Be willing to make the sacrifice to meet the goal of improving your credit. As long as you are responsible with your payments and do not default on the balance, your deposit will be returned to you.

Don't Waste Time on Credit Cards for Good or Excellent Credit

Avoid applying for credit cards aimed for people with high credit scores, "just to see" if you can get approved. You're very likely to be denied and the additional applications can damage your credit score even more.

You can typically tell a credit card is aimed for someone with excellent credit by the benefits it provides. Credit cards with excellent rewards, low APRs, and promotional interest rates are almost always aimed at consumers with excellent credit. Applicants with poor credit scores are usually denied.

What to Watch Out For

Beware of fee harvester, or subprime credit cards, that charge high upfront fees which take up up most of your credit limit. Though Federal law limits the amount of fees to 25% of the credit limit, at least one subprime credit card issuer has gotten around the law by assessing a $90 fee before the credit card is ever issued. Credit cards issued by First Premier and Credit One banks are examples of credit cards to stay away from.

Prepaid cards are often advertised as an option for people with bad credit, but these aren't really credit cards. Prepaid cards require you to make a deposit before you can use it to make purchases. But unlike secured credit cards, your prepaid card purchases are deducted from your balance. Prepaid cards don't improve your credit either, because they don't report to the major credit bureaus. (They can't since they're not a credit product.)

The Bad Credit Card Isn't Forever

Credit cards for people with bad credit don't have the most attractive credit card terms. Annual fees, high interest rates, low credit limits, and sometimes poor customer service are among the features you'll have to deal with, but just for a short time. Don't expect this temporary credit card situation to be perfect. Your goal is to pay your bill on time and improve your credit so you can qualify for something better, which can be done in about 12 to 18 months if you're responsible with your credit.

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How to Qualify for a Credit Card

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Getting a credit card isn’t as simple as filling out the application and getting approved. Credit card issuers have criteria they consider for each credit card applicant. Before you apply for a credit card, it helps to know how to qualify for a credit card. That way, you can estimate your chances of getting approved and save yourself a credit inquiry if it's more likely that you'll be denied.

01 Make sure you're old enough for a credit card.

The legal age to qualify for a credit card on your own is 18. However, if you want to get your own credit card when you’re under 21, you need to have your own steady source of income before you can be approved for a credit card. Otherwise, you’ll have to have someone apply for a joint credit card with you.

The law doesn’t specify that you have to earn a full-time wage to get a credit card. You can put your annual earnings from your part-time campus job on your credit card application. If it’s high enough to repay a credit card balance, the credit card issuer will consider you for a credit card.

02 Have your own income.

o qualify for a credit card, you need to have an income of your own. Starting October 1, 2011, credit card issuers were no longer allowed to consider household income for credit card applicants. The rule was later revised to allow applicants 21 and older to use the income of partners if they have "reasonable access" to that income, i.e. deposits into a shared account or regular transfers from the wage earners account to the card applicant's account.

The new restriction means you can’t put your or parent’s income on the credit card application unless you’re applying for a joint credit card or they're giving you money or paying your bills every month.

Having a reliable source of income gives you the ability to pay for the credit card purchases you make. Not only do you need to have your own source of income, your monthly income should also be high enough for the credit limit you’re asking for.

03 Have a positive credit history.

A good credit history will help you get approved for a credit card. The better your credit score, the more likely it is that you’ll be approved. Some credit card issuers only approve applicants who have spotless credit reports. Others will approve your application as long as your late payments aren’t in the past two years.

Having a negative credit history with a specific credit card issuer could keep you from getting approved by that same issuer. For example, if you had a charge-off with a prior American Express credit card, you may not get approved for a new Amex credit card.

Don’t worry if you don’t have the best credit – there are credit cards that approve applicants you have bad credit history.

04 Don't have a lot of debt.

Credit card issuers will consider the amount of your other credit card balances and loans before they approve your application. If your credit utilization is too high, you might be denied. How much debt is too much varies by credit card issuer and by credit card, too. Aim to keep your credit card debt below 30% of your credit limit.

A credit card issuer may compare your debt to your income to decide whether you can afford another credit card balance based on your other debt payments. A high debt-to-income ratio would indicate that you don’t have enough income to pay back another credit card balance.

05 Get a co-signer.

If you can’t qualify for a credit card on your own – because you’re not old enough, you don’t have sufficient income, or you have bad credit – you can ask a friend or family to co-sign your application. The co-signer has to meet the credit card’s qualifications for both of you to be approved.

When you ask someone to help you get a credit card, realize that person is taking a risk by co-signing for you. If you don’t pay the balance back, they co-signer will be responsible for the balance and will receive any credit damage from payments you've missed on the account.

06 Save up a security deposit.

People with new credit or bad credit, who can’t get approved for a regular credit card, may have more luck with a secured credit card. The secured credit card requires you to make a security deposit against your credit limit before you can be approved. After about a year of timely payments, you may qualify for an unsecured credit card, presuming no other negative information is added to your credit report

Many secured credit card issuers will accept a security deposit as low as $300. If you don’t have that much, start setting aside $50 to $100 each month until you have a good security deposit saved up.

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How to Get a Credit Card With No Credit History

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People with no credit often have the most difficult time getting approved for a credit card. That's because most credit card issuers require a credit score to approve a new credit card application. However, you won't have a credit score until you have at least one active account on your credit report for six months. Some credit card issuers realize that people have trouble getting a credit card for the first time and they've made credit cards specifically for people with no credit.

Make Sure You Have a Job

You must have sufficient income to repay your credit card balance, especially if you’re under age 21. The income you put on your credit card application must be your own – you can’t use the income of your parents, spouse, or other household members to qualify for a credit card unless you have reasonable access to that money.

Income limits vary depending on the credit card, but you must make at least enough money to repay your credit card balance each month. The higher your income, the better chance you have at getting approved for a credit card even though you don't have a credit score.

Pre-Qualify for a Credit Card

A few major credit card issuers have online pre-qualification that allow you see if there's a credit card available for your credit profile. These pre-qualifications are typically soft credit checks – meaning they won’t hurt your credit score or show up on your credit report when someone else checks your report.

If you eventually follow through with a credit card application, that hard inquiry will show up on your credit report and has the potential to lower your credit score.

Pre-qualifying for a credit card doesn’t guarantee approval. Other factors – like your income – could cause you to be denied for a credit card that you’ve pre-qualified for.

If you’re denied, you’ll get a letter in the mail that tells you the specific reason why. Use this information in the letter to decide what you want to do next.

Capital One Pre-Qualify

Citi Pre-Qualify

Get a Student Credit Card

If you’re a student, you may qualify for a student credit card. These cards are designed for college students who may not have a large income or a credit history. To qualify, you may have to provide proof that you're enrolled in a qualified college or university. Choose carefully. Some student credit cards have high interest rates and lots of fees.

Apply for a Store Credit Card

Retail store credit cards have a reputation of approving credit card applications for people with no credit. You’re more likely to get approval from the "closed-loop cards that do not have a Visa or MasterCard brand. You won't be able to use the credit card outside that particular store, but it will give you a chance to jump start your credit history. Beware: retail store credit cards have low credit limits and high interest rates. Keep your balance low and pay off your balance to avoid paying a lot of interest.

Get a Secured Credit Card

Secured credit cards are the go-to cards for people who can’t get approved for a traditional credit card.

There’s nothing wrong with having a secured credit card as long as you pick one that reports to the major credit bureaus and has few fees.

What makes a secured credit card different from other credit cards is that you make a security deposit to get a credit limit. Some secured credit cards come with lots of fees, but there are a few credit cards that keep fees to a minimum. If you don’t have enough money for a security deposit right away, you can spend a few months saving up for the security deposit. The Capital One Secured MasterCard has a minimum security deposit of $49, $99, or $200 for a $200 credit limit.

Get a Co-Signer

If you can’t get a credit card on your own, you may be able to take advantage of someone else’s good credit. You could get someone with a job and good credit to apply with you, but be aware that getting a credit card with a cosigner has drawbacks.

You have another person involved with your finances, watching your purchases, and making sure you pay the credit card. If you’re not responsible with the credit card, i.e. you miss payments or max out the card, the cosigner’s credit is affected, too. Think carefully before you get a credit card with someone else.

Tips

Avoid putting in a lot of credit card applications. If you’re turned down for a major credit card, even if it’s a student credit card, don’t keep applying. Instead, look for a store credit card or a secured credit card. Choose these credit cards ahead of time, so you’re not desperately searching for a credit card that will approve you.

Watch out for any credit card that guarantees approval without first checking your credit score. There’s probably a catch in the form of high fees or high interest rate or both.

A prepaid card is an alternative to a credit card but is only helpful if you don’t have a checking account and debit card. Prepaid cards don’t help you build a credit history. They simply let you make credit card-like transactions, like paying at the gas pump.

Once you're approved for a credit card, use it responsibly so you can qualify for better credit cards and loans in the future. Keep your balance low and pay your balance in full every month to build a good credit history.

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How to Get a Credit Card With Bad Credit

Unknown March 12, 2018 0

People with bad credit have the fewest options for credit cards. That's because few credit card issuers want to take the risk of extending a credit limit they may not get paid for. The lower your credit score, the harder it will be to get approved for a credit card, but it's not completely hopeless. Though it may be hard, you can get a credit card with bad credit.

How Bad Is Your Credit Score?

You probably know you have bad credit because you've previously applied for a credit card, loan, or other credit-based service and have been denied.

If you haven't already, check your credit score to see where you stand exactly.

Credit Cards for People With Bad Credit

There are very few credit cards aimed specifically at people who have bad credit.

Orchard Bank credit cards were previously a good option for people with bad credit.

However, the company who issued Orchard Bank cards (HSBC) was acquired by Capital One in 2012 and the Orchard Bank cards were discontinued.

Be Willing to Pay a Deposit

Yes, you'll have a low credit limit starting out, but that's true of unsecured credit cards for bad credit, too.

Be willing to make the sacrifice to meet the goal of improving your credit. As long as you are responsible with your payments and do not default on the balance, your deposit will be returned to you.

Don't Waste Time on Credit Cards for Good or Excellent Credit

What to Watch Out For

The Bad Credit Card Isn't Forever

Tags # Credit Card Continue Reading

How To Open Health Insurance In Canada

Unknown March 12, 2018 0

If you are a Canadian citizen or permanent resident, you may apply for public health insurance. With it, you don’t have to pay for most health-care services.
The universal health-care system is paid for through taxes. When you use public health-care services, you must show your health insurance card to the hospital or medical clinic.
Each province and territory has their own health insurance plan. Make sure you know what your plan covers.
All provinces and territories will provide free emergency medical services, even if you don’t have a government health card. There may be restrictions depending on your immigration status.
If you have an emergency, go to the nearest hospital. A walk-in clinic might charge fees if you don’t live in that province or territory.

Medical coverage in Canada
Nobody means to wind up plainly sick while voyaging or considering abroad, however the astute explorer prepares. It is best to totally comprehend the human services arrangement of whatever nation you’re in; Canada’s medicinal services framework is no special case.

Every single worldwide understudy who examine in Canada are required to have medical coverage. Medicinal scope accessible to worldwide understudies differs from area to territory, In territories in which global understudies are not secured under commonplace human services designs, you should make courses of action for private medical coverage scope.

Common Health Care
The common social insurance framework in Canada covers essential and preventive restorative administrations, and in addition crisis mind. As a global understudy with a legitimate report visa, you ought to be qualified for a commonplace social insurance card so you may get to these administrations.

In any case, there are numerous medicinal administrations that are not secured by the Canadian common social insurance framework. These administrations incorporate dental care, vision mind, physician endorsed meds, and some symptomatic testing administrations.

Also, a few administrations, for example, hospitalization are just in part secured by the commonplace medicinal services framework. Without extra medicinal protection, even a concise healing center stay can cost you a huge number of dollars. A few doctor’s facilities decline to concede new patients without verification of private medical coverage scope in Canada.

Private Health Insurance
The restorative care offered by your area or domain won’t not be canvassed in different areas and regions. Consequently, you may require private medical coverage in the event that you intend to movement.

Private medical coverage is likewise accessible for administrations that may not be secured under your area or region’s health care coverage design. These administrations for the most part incorporate physician endorsed drugs, dental costs, private healing facility rooms, emergency vehicle administrations, and medicine glasses. A few areas’ designs likewise reject apparently “minor” activities, for example, IVF treatment.

As a worldwide understudy examining in Canada, it is prudent that you buy private medical coverage before your outing, to ensure you are shrouded in all cases.

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How To Open Health Insurance In Germany

Unknown March 12, 2018 0

Germany has a claim to being the home of medical coverage. Its framework goes back to the 1880s and the season of Bismarck. It’s a widespread framework: every German occupant need to have medical coverage. Be that as it may, you’re in charge of picking your own arrangement, and there might be various alternatives open to you. Read on to discover how the great yet complex German medical coverage framework works.

What sort of human services framework does Germany have?

Germany is notable for its amazing medicinal services framework. Being a widespread framework, everybody in the nation needs to have Krankenversicherung (medical coverage). There are both state and private protection alternatives, despite the fact that confinements exist about who can be secured by each. Around 90% of individuals have state medical coverage and have the alternative to top this up with private protection. The rest of completely private.

The cost of protection is significant, yet this implies in the event that you do have require, the hospital expenses you wind up looking in Germany will be low. By law, all medical coverage arrangements need to take care of most expenses towards a decent scope of basic administrations.

Germany has a reputation for having one of the best health care systems in the world, providing its residents with comprehensive health insurance coverage. Approximately 85% of the population is mandatory or voluntary members of the public health scheme while the rest have private health insurance. The health insurance reform of 2007 now requires everyone living in Germany to be insured for at least hospital and out-patient medical treatment. This must also include coverage for pregnancy and certain medical check-ups.

The costs of the German health care system are immense and rising due to demographics as well as medical cost inflation. Recent government reforms have attempted to make hospitals more competitive and thereby reduce costs for the state health insurance providers (Gesetzliche Krankenversicherung or GKV).

The introduction of the Gesundheitsfonds which is a monstrous collection and distribution fund for all monies paid into the GKV went into effect as of January 1, 2009. The consequences were felt by all: the present 113 Krankenkassen claim that the amounts being distributed per head are not enough to cover costs and a number of the Kassen have already registered for bankruptcy. Their members will, of course, be allowed to change to another Kasse.

As is a tradition in Germany, another reform came into law officially on January 1, 2015 - the name is another jaw-breaker: Gesetz zur Weiterentwicklung der Finanzstruktur und der Qualitat in der gesetzlichen Krankenversicherung. A number of measures to supposedly increase competition among the health insurance funds and to reduce bureaucracy were introduced: The premiums for members of the German public health system were reduced from 15.5% to 14.6% of income which at first sounds attractive. The Krankenkassen are still allowed to demand a supplemental payment to meet their costs and as the median declared percentage amount is approximately 1% in 2018 this means that the total is 15.6% with the majority of Kassen. The naughty clause: the employer share has been frozen at 7.3% of the special income monthly level of 4,425 Euros whereas the employee carries the full brunt of the 7.3% plus x (presently between 0.3-1.7% which is quite a span).

This will again make it necessary to compare the total premiums of the different Kassen before deciding which one to join. Further reforms can be expected in attempting to fund the system and these will probably mean that the premiums will increase and benefits will be further rationed.

You have three options for health insurance while living in Germany; the government-regulated public health insurance system (GKV), private health insurance from a German or international insurance company (PKV) or a combination of the two. You can opt for full private plans if your income is above a certain threshold or if you are self- employed. Finding the best service provider of state health insurance or finding the most suitable coverage from a private health insurer while still at a competitive rate is not always easy but is well worth the effort.

As people have different requirements or expectations from health insurance, it is important to understand the system in order to filter out the most suitable plan while living in Germany.

Health insurance is not a commodity but rather is a vital financial support in times of illness or after an accident.

Some health insurance policies offer less coverage than others and the scope and quality of terms and conditions are of utmost importance.

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Monday, 12 March 2018

What is Credit Card Pre-Approval?

How to Get a Credit Card With Bad Credit

How to Qualify for a Credit Card

How to Get a Credit Card With No Credit History

How to Get a Credit Card With Bad Credit

How To Open Health Insurance In Canada

How To Open Health Insurance In Germany

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