Question:
I'm a 15 year old black male, I don't have a job yet, can someone tell me how credit cards work and how i can apply for. . . . . . . . .I need 2 know every detail because i don't know anything about them . . .
Answers:
Since you are 15 I recommend a prepaid credit card. They are like bank debit cards and you need to load money before you can use it.
You don't need to know how it works. All you need to know is to pay them promptly monthly.
To apply, you need a steady stream of income monthly of not less than 1500 to 2000 (depending on company). Since you are underage, I doubt you can get a permanent job. So scratch out this option.
The best way for a 15 y.o is to get a supplimentary card from parents.
You can't legally get credit until you are 18 unless your parents add you to a card of theirs
You have an amount of credit you can spend on the card. You can purchase items costing no more than the limit on your card. When you get your monthly bill it comes with interest, say for example 15% of your total purchase. If you don't pay it off on time, more interest is added to next months bill.
CC can get you in debt especially without a good paying job. I'd steer clear and get a paper route.
You can visit http://www.cashguru.info and find very useful tips and several articles on credit related matters.
Understand the Benefits
One of the greatest benefits credit cards offer is convenience. If you need money quickly, a credit card allows you access to more funds than the bills you carry in your wallet. When your car breaks down or unexpected health costs come up, you'll be prepared.
A credit card can help you budget expenses. Your monthly credit card statement will itemize the different purchases you made. A quick glance at the statement will show how your money has been spent.
When you apply for a credit card, you have a chance to improve your credit score. After you receive the card and start using it, you leave a trail. This credit history shows your spending habits and ability to pay back your debts. Having a good credit score can help you secure a loan in the future.
Another benefit when you apply for a credit card is that it offers theft protection. If you lose cash, there are very few ways to recover the money. However, if your credit card is lost or stolen, you can report it. Your credit card company will investigate the fraud and issue you a new card.
Know what to Look For
If you think there are an overwhelming number of options available for credit cards, you are right! There is a credit card for almost everyone today. Finding one that suits your lifestyle is key to making the most of your credit card. There are a number of points to consider before you apply.
First, check out the annual percentage rate (APR). This measures the cost of credit and is written as a yearly interest rate. If you plan to carry a balance from month to month, you may want to get a card with a low interest rate. Some offer low introductory rates. Be sure to check what the interest rate will be after this initial period. You'll want to have an APR that will work well for you in the long term.
Next, look into the attached fees. Some cards have an annual fee. Many include other finance charges. Read the fine print to help you understand what is all involved with the card. These fees may or may not weigh into your decision, but it is important to understand them.
You will also want to consider any rewards included. Many cards come with cashback rewards, travel benefits, or other award options. If you have good credit, this is a great way to make the most of your credit card.
Apply Online
It has never been easier to apply for a credit card. You can do so online in only a few minutes. When filling out an application, be prepared to give basic personal and financial information. You may be asked questions regarding your monthly income, savings account, living situation, and employment status.
Credit cards offer excellent benefits and rewards. So what are you waiting for? Apply today to enjoy this powerful financial resource. Apply online for a best credit card at: http://www.credit-card-gallery.com/no_an...
There is a website www.1-800BadCredit.com who has a page on "How Credit Works". Check it out.
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