How to Apply for a Collateral Loan in USA

Collateral loans are one of the easiest types of loans to get, regardless of your credit. In case of a collateral loan, bank or credit institution lends you the amount of money depending on the value of your collateral i.e asset.

Such loans are best recommended to individuals whose credit application has been denied.

Types

There are various types of secured loans, borrower can keep as a security with the financial institutions:

Home: Also known as mortgage i.e. borrower keeps his/her home as a security with the bank.

Car: Keep car as a collateral.

Secured credit card: Banks will ask borrower to make a deposit against the credit card limit.

Title Loan: If you have a clear title on vehicle which has been paid-off then you can get loan against it.

Jewelry: Loan taken against jewelry (mainly gold).

How to Apply?

Applying for a collateral loan is a very simple process.

Specify the amount of money you need, then look for a corresponding guarantee for that amount. The guarantee includes items such as cars, houses, jewelry, boats, all-terrain vehicles and anything else of value. The warranty must be paid and you must have a clear title.

Take the title with your loan officer, indicating that you want to apply for a secured loan and for what amount, then provide your title. Once the loan officer determines that the value of the collateral matches the loan, the loan officer will have you complete the loan application.

Complete the application and answer any questions the loan officer has and wait for the loan approval.

Secured loans are called collateral loans because banks earn in any way. If you repay the loan, they give the collateral back. If you fail, the bank will sell the collateral for income and still earn.

Most banks will require you to have a savings or checking account with them before they give you a loan.

In case of collateral loan, the interest rate charged is low compared to unsecured loan. This is mainly because of the risks involved in case of loans without collateral.

Such type of loan is excellent for building or improving credit score. This is because when someone applies for the first time the chances of rejection are high because of lack of credit history.

Risks

Avoid securities lending companies outside of banking institutions because the interest rate is sky-high. In the end, you will repay 10 to 20 times the budget amount.

If you are not able to make repayment then ask bank to extend the timeline to avoid banks to sell your assets.

4 Habits of Individuals with Good Credit History

A credit report is a report card that financial institutions access to whenever any individual applies for credit.

And credit report contains history of how you’ve behaved when you’ve been granted credit: whether you’ve paid it on time, whether you’ve been slow to pay it back, and how many you’ve acquired since the first credit was granted. This, along with other variables, allows financial institutions to know whether or not you are “eligible” and up to what amount to be a beneficiary of a loan.

So, that’s why if you’ve been denied any credit, it’s because this report doesn’t give you good marks to your financial habits. That’s why it’s important to keep a good record, whether you need a credit card, a student loan or credit for your own business.

So, here is a list of those characteristics and habits that people with good credit report have. When you start applying this in your day to day life, you will have good credit report.

Make timely repayment

People who have a very good credit score and credit history are always mindful of payment deadlines. While it’s obvious that when you have a debt you always have to pay it, many people believe that doing so after the due date doesn’t have a problem.

But here’s the key: You have to pay on time, even before the payment deadline. For this, its best to establish an agreement with your bank so that the date is near money gets automatically debited from your bank account. If you do not have money to pay, its worth to negotiate with the bank because deadlines can always be extended.

A delay of a few days doesn’t really change your score too much. But if you want to have a good report, it’s always best to cancel before the deadline.

Never spend beyond the limit 

Those with good scores never use the maximum capacity of their credits. For example, in the case of a card that has an available credit of $4,000, the ideal is never to use it completely. Not just one, but all the credit products you’ve bought.

The lower the use of that limit, the more beneficial it will be to the individual, indicating that he or she can have self-control of his or her needs while not being afraid to borrow a little.

Use credit wisely

Of course, in order to have a credit history you have to use financial products that allow you to build credit. Among them, credit cards and consumer finance are the most common. Those with good scores get it and use them wisely and properly. They know when it’s worth doing it, on what products and services, and discard when it’s not.

That means there’s no fear of getting into debt. Having a good credit history opens the doors for getting access to credit in the future for many personal and professional needs.

Never become guarantors

They rarely lend themselves to being guarantors or co-debtors because they know the high risk it can pose not only to their own finances but also to their income. Those with good credit history are therefore not afraid to say “no” to friends or family because they prefer to maintain good relationship and a good report.

Never change financial products frequently

Although the conditions of your finance may change, when you frequently open or close financial products; but by doing this you are eliminating the record of good behavior you had with the bureaus and financial institutions. Of course, this doesn’t mean you can’t do it or you should not do it, but frequent changes should be avoided as much as possible.

This also means you are a “problematic customer” for the financial institutions as you are not loyal so they won’t offer you different products and not bet on you.

Migrant in USA? Auto Insurance Important Information

Being a migrant in the United States and wishing to have a car insurance may initially have some complications when compared to the citizens or who have been in the country for quite some time. Complications further increase especially if you do not have adequate knowledge and no one to advice.

One of the main points focuses on solving the previous validation of the record as a driver of the foreign insured. Remember that validating a good driving record could assure the interested party better rates in their insurance policy.

In order to have an auto insurance you must consider some important aspects. Factors such as age, civil condition, car model, accumulated traffic fines, among others are of vital importance for insurance companies. And, of course, another variable to take into account is referred to the driving history of the driver or also known as “Record”. A driver’s record contains important information for insurers and competent authorities.

The record of the policy includes, amongst other data, accidents that have occurred with the insured at the wheel, suspensions of the driver’s license that have occurred, fines, and so on. This document can be requested through the offices of the Secretary of State concerned. Another way of application is online and finally through the company that will manage the vehicle insurance.

But, if you are a immigrant driver in USA, what are the steps to follow?

Remember that if you do not have driving record in the USA, the odds of having a cheap car insurance are low. So it is recommended you to follow the below recommendations.

You can apply for the so-called “Driving Record” that may include an additional cost due to the procedure to be performed. Although you must’ve been an excellent driver in your own country. However when it comes to United States, you need to prove it and the only solution is through the previous record.

In this procedure, the new insurer will require legally certified copies of the last policies contracted in the countries of origin and the details of their activity, as well as an official record of such history.

Each document must be duly translated into English, and you must also provide your identity documents, such as your passport.

Finally, an excellent advice for any migrant who wishes to buy an automobile insurance in the United States is to go to companies specialized in processing insurance where you can have the certainty of finding the cheapest car insurance, tailored to your needs and with a complete advice and processing necessary.

Credit Card Debt Consolidation: Pros & Cons

Debt negotiation is a program to help you eliminate credit card debt, personal loans and any other unsecured debt.

Many times credit card debt gets out of control and action is needed to avoid over-indebtedness. A common repayment strategy is debt consolidation.

Through a consolidation you get a loan to pay off your credit card bills and you are responsible for paying off a single loan. This strategy is not ideal for everyone, so learn about the pros and cons to help you make the best decision.

Advantages

1.- Combine several payments into one. It allows you to organize yourself and the convenience of making a single monthly payment.

2.- Get lower interest rates. If you have good credit, most options for consolidating your debt, whether a personal loan or a home equity line of credit, offer you lower interest rates than credit cards.

3.- Reduce monthly payments. If the interest on your new loan is lower, your monthly payment may well be lower. In addition, if you pay on time and consistently, you will avoid any penalties for late payments, exceeding your credit limit.

4.- Pay 100% to your creditors. It would pay off your creditors and preserve a positive payment history, if the accounts have been in good standing with your creditor.

Disadvantages

1.- It may cost you more money in the long run. Despite getting reduced interest and payments, if the repayment period is long, you may end up paying more at the end of the loan tenure. Also, depending on the consolidation method you use, your total debt may increase with the addition of loan fees or fees for transferring balances from one card to another.

2.- You can go further into debt. Either out of necessity or will, if you use the cards you already paid off again, you would face paying off the original debt plus additional new debt.

3.- It can be more expensive. If you consolidate your cards with a secured loan, such as a home equity line of credit, defaulting on your payments puts you at risk of losing your home or any other valuable possessions you have used to secure your loan. You should avoid putting at risk things, whose total value is greater than the amount of your credit cards.

4. – Negative effects on your credit. Consolidating debt can affect your credit score by changing your credit score. You do not eliminate debt, but combine it and it affects the balance of debt and available credit. If you close your paid credit cards, your score also suffers.

5. Some companies charge high service costs hidden in their contract, so consumers must sign up for a nonprofit program with a BBB-accredited company.

Bankruptcy

Bankruptcy can help you prevent foreclosure, no other program can do this. Hypothetically speaking, if a consumer enrolls in a debt negotiation or debt management program, consumers will increase their cash flow by helping them pay their mortgage by preventing foreclosure. Debt settlement programs can help you prevent foreclosure this way.

Bankruptcy can help prevent foreclosure, no other program can do this.

Bankruptcy can prevent wage garnishment.

Creditor harassment will stop after you file for bankruptcy, while with debt settlement it does not stop immediately.

Certain types of debts will be discharged with bankruptcy but this does not occur with a debt management or debt negotiation program.

Many times a consolidation remedies a symptom, but does not solve a major financial problem. Before determining if this strategy is right for you, explore the causes of your debt and assess other repayment options such as a Debt Management Program, self-payment strategies or working directly with your creditors.

Debt Collectors: What they Can & Cannot Do, Debtors Rights

If you use credit cards, owe money on a personal loan, or are paying a mortgage on a house, you technically become a “debtor”. And if you delay paying your creditors, or make a mistake in your accounts, you may be contacted by a “debt collector”.

You should know that in any of these situations, a law called the Fair Debt Collection Practices Act (FDCPA) that deals with impartial debt collection requires debt collectors to treat you fairly and prohibits certain methods of debt collection. Of course, the law does not remove any legitimate debt you owe.

What kinds of debts are covered?

Personal, family, and household debts are covered by the act. This includes money owed for the purchase of a car, for medical care, or for account charges.

Who is considered a debt collector?

A debt collector is anyone who regularly collects debt owed to others. This includes attorneys who collect debts on a regular basis.

How can a debt collector contact you?

A debt collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector cannot contact you during inconvenient hours or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector may also not contact you at work if he or she knows that your employer disapproves of such contacts.

Can you prevent a debt collector from contacting you?

You can prevent a debt collector from contacting you by writing a letter to the collector telling him or her to stop. Once the debt collector receives your letter, he or she cannot contact you again except to tell you that there will be no more contacts or to notify you that the debt collector or creditor intends to take any specific action. Please keep in mind, however, that sending such a letter to a debt collector does not eliminate the legit debt if you do owe it. You may still be sued by the debt collector or your original creditor.

Can a debt collector contact anyone about your debt?

If you have an attorney, instead of contacting you, the debt collector should contact the attorney. If you do not have an attorney, a debt collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors are usually prohibited from contacting third parties more than once. In most cases, the collector cannot tell anyone other than you, your spouse, or your attorney that you owe money.

What should the debt collector tell you about the debt?

Within five days of being contacted, the debt collector must send you a written notice telling you the amount you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.

Can a debt collector continue to contact you if you believe you do not owe the money?

A debt collector cannot contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating that you do not owe the money. However, a collector may resume collection activities if they send you proof of the debt, such as a copy of the bill for the amount owed.

What types of debt collection practices are prohibited?

Harassment: Debt collectors may not harass, oppress, or abuse you or any third party they contact.

For example, debt collectors cannot:

  • Use threats of violence or harm;
  • Publish a list of consumers who refuse to pay their debts (except for a credit bureau);
  • Using obscene or profane language; or
  • Repeatedly using the telephone to annoy someone;
  • Debt collectors may not use any false or misleading statement when collecting a debt.

For example, debt collectors cannot:

  • Falsely suggest that they are lawyers or government representatives;
  • Falsely suggest that you have committed a crime;
  • Misrepresenting that they operate or work for a department or credit bureau;
  • Misrepresent the amount of your debt;
  • Indicate that the papers sent to you are legal forms when they are not; or
  • Indicate that the papers sent to you are not legal forms when they are

Debt collectors cannot state that either:

  • You will be arrested if you do not pay your debt;
  • Seize, garnish, seize, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so; or
  • Actions, such as a lawsuit, will be taken against you when such action cannot legally be taken, or when they do not intend to take such action.

Debt collectors may not:

  • Give false credit information about you to anyone, including a credit bureau;
  • Send you anything that looks like an official court or government agency document when it is not; or
  • Use a false name
  • Debt collectors cannot engage in unfair practices when trying to collect a debt.

For example, debt collectors cannot:

  • Collect any amount greater than the amount of your debt, unless your state law permits a similar charge;
  • Depositing a deferred check prematurely;
  • Use deception to make you accept collect calls or paid telegrams;
  • Take or threaten to take your property unless this can be done legally;
  • Contact you through postcards.

What control do you have over the payment of debts?

If you have more than one debt, any payment you make should be applied to the debt you indicate. A debt collector cannot apply a payment to any debt that you believe you do not owe.

What can you do if you believe a debt collector violated the law?

You have the right to sue a debt collector in state or federal court within one year from the date the law was violated. If you win, you can recover money from the damages you suffered plus an additional amount. Court costs and attorney’s fees may also be recovered. A group of people can also sue a debt collector and recover money for damages, or one percent of the collector’s net worth, whichever is less.

Where can you report a debt collector for an alleged violation?

Report any problems you have with a debt collector to your state Attorney General’s office and to the Federal Trade Commission. Many states have their own debt collection laws, and your state Attorney General’s office can help you determine your rights.

Unsecured Personal Loan in USA: Types, Benefits, Risks

The difference between personal loans and other types of loans is that personal loans are granted without collateral and therefore involve great financial risk for the lending institution. Hence, not all banks grant them in the United States. On the other hand, banks that grant such loans do so under strict compliance with a series of requirements, such as those set forth by Bank of America.

Unsecured loans comprise of three types:

a) Personal loans, those given to individuals for their own use and purpose.

b) Unsecured loans, which are granted to businesses, corporations, and other business entities responsible for repaying the debt.

c) Unsecured loan with guarantor granted to a business. Here the company is responsible for the repayment of the loan, but in case the company does not pay the debt, the guarantor is responsible.

Under what perspective should personal lending be considered in United States?

The granting of these loans involves opposite scenarios for the bank and for the beneficiary.

For the financial institution, this means that it does not have a guarantee or element of value available for attachment in the event of insolvency in payment by the debtor; whereas for the debtor it means a business where it has very little to lose. Hence, unsecured loans could be thought of as a bad or risky investment for banks; however, they offer certain advantages because not all loans are the same.

First, there is the case of an unsecured loan where it is necessary for the borrower to make all the payment payments as an individual individual, but there are also those types of loans called unsecured business loans where the borrower is not a natural person but a company, and finally there is an unsecured loan with personal guarantee, in which there is a guarantee, not by the borrower who in this case is a company, but by a person who assumes the status of guarantor to repay the loan in full.

Benefits & risks of personal lending to financial institutions

Of course, these personal loans offer extensive benefits to the borrower and a great deal of risk for the lender, so the latter grants loan on the condition that the borrower meets a number of requirements, making them practically a kind of reward for customer loyalty.

One of the fundamental requirements imposed by banks such as Bank of America to grant access to these loans is the credit score by the borrower. Because this kind of indicator provides an idea of the borrower’s ability to repay.

In addition, by assuming greater risk with this type of lending, financial institutions tend to set a higher interest rate, just as they set a lower credit line limit.

Similarly, the restrictions or penalties on these loans are more susceptible than other loans, increasing the possibility of loan denial.

On the other hand, certain banks in USA impose fines and penalties on those who try to consolidate their debts with a personal loan.

Because these types of loans are riskier for any lending institution, they carry a higher interest rate and have lower credit line limits than other secured loans. Also, bank cannot offer you debt consolidation loans if they think you are likely to get into debt trouble.

What purpose such loans can be used for?

The use of unsecured personal loans varies, because they can be used to consolidate other debts, such as credit cards and other high-interest debts, by combining these debts into one more manageable and lower-interest loan, and can also be used to pay for education or health care expenses.

These unsecured loans contain higher risks for the financial institution because there is no collateral to back up the debt in case the loan is in default. As a result, they may be more difficult to obtain, carry a higher interest rate, and have lower limits, usually as low as US$5,000.

Moving to USA? Know about Credit Card, Insurance, Bank Account

If you are going to stay in USA for a while you should have a debit or credit card so that you can make payment using it and withdraw money. The cost varies considerably according to the type of transaction and card.

If you have a card from your country, talk to your bank to see if it works at American ATMs (most American banks support this system), but if you plan to stay in the US for a while, you should open an American account and apply for a card, this will save you transaction costs.

Here are the basics of credit and debit card, insurance and bank account.

Credit Card

In the United States you can use your credit card anywhere. The most common cards are MasterCard, Visa and American Express. There are stickers on store doors that show which cards are accepted. If you have a PIN code for your card, you can use it to withdraw money from an ATM, but keep in mind that withdrawal carrier charge which is usually quite high.

Most credit card companies do not charge you for the card. When you apply, compare several banks and department stores before deciding which one is best for you. Some banks do not give credit cards to immigrants who have just arrived, and remember that in the United States you need a Social Security number in order to apply for a credit card.

Debit Card

Most debit cards have a Visa or MasterCard logo indicating that they can be used in the same way as a credit card. The difference is that with them the money is debited directly from your checking account.

Once your bank account is opened, you will receive the debit card with its corresponding PIN code (usually a secret four-digit number). This card allows you to withdraw money from almost every ATM in the United States. If you take it out of your bank’s ATMs or from partner banks, it will be free with no commission charged (which is usually between $2 and $4).

You can also print your bank statement consisting of all the transactions. The income is receivables and the payments are debits.

Bank Account

Opening a bank account in the United States is quite simple, you just need to show an official ID such as a passport or driver’s license and make an initial deposit.

In the United States there are many banks and competition between them is enormous, so the customer has more options to choose from.

Most banks offer a wide range of banking, investment and insurance services, and many also offer home buying advice. As prices, services and conditions can vary greatly, it is best to do some research before making a decision. All banks offer online banking, and there are also some banks that are only online, such as ING Direct (www.ing.com).

You don’t usually need a social security number to open an account, so almost everyone can open a checking or savings account in the US.

Checking Account

The most common thing in the U.S. is to have a checking account. Most transactions, such as collecting wages or paying rent, are done through this type of account. In general, a checking account allows you to:

  • Withdraw money from the ATM with a debit card. It’s usually free if you do it at your bank teller. But if you use another bank’s, they’ll charge a couple of dollars.
  • Transfer money between accounts
  • Pay by check
  • Direct debit of receipts
  • Using telephone or Internet banking
  • At many banks you can choose between different types of checking accounts that offer different services (e.g. internet banking, interest, free credit card, etc.), but bank charges vary. If you are a student, you can request to be exempted from bank charges.

Before choosing a bank, make sure you can answer the following questions:

  • Once my account is opened, can I withdraw money from the ATM immediately?
  • Where can I get money without being charged (there are many banks that have agreements with other banks so that their customers can get money for free)?
  • Can I pay my bills online?
  • Will I receive a debit card immediately?
  • When can I apply for a credit card and how long does it take?
  • What expenses does my account have?
  • Can I have low balance (less than the minimum required) and how much does this service cost? Being able to stay in the red (“overdraft protection”) allows you to have a negative balance in your account up to a limit set by the bank. The amount usually depends on your monthly income. The interest when you have a negative balance is very high, so it is recommended that you use it only in case of emergency.

Before providing you with any services, the bank will look at your account for the first few months to see if you have regular income. American banks are usually quite conservative when it comes to granting credit cards. In order to have a credit card in the United States you need a valid Social Security number.

Savings Account

If you want to save, savings accounts give you better interest rates, but a savings account can’t replace a checking account. Savings accounts do not allow direct debit, bill payment, and check book. Ask your bank what is the best interest rate it can offer you.

Opening Hours of Operation

Opening hours vary from bank to bank, but most are open Monday through Friday from 9am to 6pm, and Saturday from 9am to 12pm. Almost all branches have ATMs where you can withdraw cash, transfer money and view your bank statement 24 hours a day.

Insurance

You can seek advice on the different types of insurance from a private insurance company or agent. Keep in mind that most insurance agents work on commission. If you want honest advice, you must find an independent insurance agent. Some banks offer insurance advice as part of their financial services.

Automobile Insurance

In many US states it is mandatory to insure your car. Before issuing the policy, insurance companies usually do an exhaustive investigation that includes the driver’s background, driving history, etc. If you don’t have a good driving record in the US you will have to pay more for car insurance.

Renter’s Insurance

The landlord is responsible for insuring the home, but you will have to insure your belongings. Also, if someone has an accident in your home, you may be responsible for paying the medical costs. So even if the place where you live isn’t yours, it’s still worth checking out.

Home Insurance

Home insurance covers the costs in the event of theft, vandalism, storms and other eventualities. It usually replaces affected items for their current value, including furniture, appliances and up to a cash limit. The insurance cover should correspond to the current value of the items insured in the home. If you have valuables, you may need an additional policy.

Life Insurance

They are available for life (“Whole Life Insurance”), which guarantees the insured person’s family payment of a fixed amount if he dies, or for a fixed period (“Term Life Insurance”). This period can range from one year to 10, 20 or even 30 years. You can also insure yourself up to a certain age, such as 65 or 70. This type of insurance expires in the fixed time.

Life insurance for a certain period of time is usually done to protect the family from debt. For example, if you and your wife have a house and you die, your wife would have to pay the mortgage on her own. If you had a life insurance policy, she could use the money to pay the mortgage.

4 Ways to Get First Credit Card in USA

Credit is very important in the USA. And even at the time of economic crisis, the entire American economy revolves around credit. That’s why it is very important for young people and new immigrants to find ways to establish a good credit history so that foundation for future financial goals can be built. Whether it’s buying a home or a car, financing a college education, paying bills, or meeting emergency obligations; at some point of time, you will need credit score.

How to start building a credit history

Amongst various options to build a credit history, the best option is owning a credit card. However if you don’t have a credit history you won’t get a credit card and without a credit card you won’t be able to start your credit history. But don’t despair, there’s a solution for everything.

So here’s the strategy to own your first “plastic money”.

Option-1: Cards from Department or Gas Stations

Gas stations and department stores are a good place to start. They issue cards more easily and without asking for much requirements and reports. You will be asked to show regular income and few others. You can only use them to shop at their stores and branches for limited amounts and in return they will help you build credit history.

However, there are some very important caveats you should be aware of:

  1. Track all your expenses and try to reduce expenses as much as possible. It’s understood that free money is always enticing and forces users to spend more.
  2. Pay on time, better if you can do it before the deadline and fully.
  3. Don’t use all your monthly credit. It is advisable to not exceed 50% of credit in any given month.
  4. Stay away from paying minimum balance. And if you do so, pay more than this balance.
  5. Make sure these stores report your transaction history to the credit bureaus.
  6. Avoid taking supplementary card against your primary card initially, as default/over crossing of credit limit on this add-on card will negatively affect your credit score.

After a short time, you will become accustomed to the responsible use of your credit card. Above all, you will learn not to be tempted to abuse it. It is very important that you maintain control over your expenses and keep a good record of them. You must be disciplined and know how to say no to some purchases if you can’t afford to pay them in the future.

Always remember to spend what you can afford to pay later, as any slip-ups you make will be recorded on your credit report. And this will accompany you all your financial life.

Option-2: Secured Credit Card

Now let’s take the big step. It is recommended that you go to a bank, perhaps the one where you have your savings account or checking account. And if you don’t have an account with one, look for the one that best suits your needs.

There are many banks in USA but you should look for one that has many branches and provide personalized services. This is helpful because it can sometimes be difficult and complicated to understand certain financial terminologies, if you’re from different country.

Once you have chosen a bank, you can apply for a secured credit card.

What is a secured credit card?

The secured or guaranteed credit card is a card that is backed by money that you must deposit as security for the payment you make using the card. This deposit will be frozen and cannot be withdrawn until you repay for all the purchases you have made with the card.

Check out: Bank of America Secured Card.

Suppose you apply for a secured or guaranteed credit card for US$ 2,000, then you must deposit US$ 2,000 as security. That is: the same amount you apply for as credit on your card, you must guarantee it with an equal or higher deposit. And after paying some fees, you will be able to access cards from other banks with an increased credit limit.

Once you’re done paying your bills, you can cancel this card and apply for a traditional credit card.

Option-3: Traditional Credit Card

The bank from which you apply for your card will perform a repayment ability analysis and request credit reports from bureaus. If you’ve been paying well with your previous cards, if you’ve paid your installments on secured or guaranteed cards, you’ll have no trouble getting your first traditional credit card.

Option-4: Supplementary Card

It would be great to have a friend or family member who can apply for add-on card (also called supplementary card) on your name. But make sure to be a honest borrower i.e. you never default, always make full payments on time, never over spend beyond the assigned credit limit. This is because, credit score of both primary and secondary card owner (i.e. you) gets negatively affected. Moreover on certain cards in USA, a good credit history of the primary card owner benefits the secondary card owner as well.

Remember that when used responsibly, credit cards will help you achieve your personal financial goals and ensure a smooth financial future in the United States. On the other hand, a bad use of credit card will lead to difficult to pay debts and bad credit report will restrict your access to credit in the future or getting access to the credit will become painful. The credit card is a loaded weapon, always use it wisely.

Credit Card Denied in USA? 2 Easy Options to Still Get a Card

Sometimes getting the first credit card in the United States is not easy, especially if you don’t have a credit history or have damaged credit. Here are some steps to take if you were denied a credit card.

Do not get discouraged: The first thing to do is not get discouraged. Even if one company denies your application, there are many other companies in USA wanting to have you as a customer.

Find out the Reasons for the Denial: If your credit card was denied, you will receive a letter in the mail that includes the specific reason for the denial. Use this information to find out what you need to improve to get your credit card. You may need to apply for a different type of credit card or need to improve your credit history.

To ask for an explanation, you can call the toll-free number (800) or (888) listed in the letter with the credit card company’s denial.

Consider alternate options to build or rebuild credit: For this, consider following options to get card which are easier to get:

Department Store or Gas Card

Department stores and fuel companies usually have easy credit card approval process compared to card companies. So basically getting your first credit card with this option is little less complicated. However, consider that they have high interest rates and it is more expensive to maintain a balance. Another negative aspect of these cards is that they can only be used for a particular store or gas station chain. Although they limit what you can buy, they also offer discounts/rewards that may be interesting.

Here are few of the features/benefits of having department cards:

  • Varying cash back on gas purchase, travel, restaurants
  • Typically such cards come with no annual fee
  • Discounts on purchasing products of their own brand
  • Reward point for every dollar spend. (This varies for each card).

Few of the prominent cards offered by departmental stores are:

  1. Amazon Prime Rewards Visa Signature Card
  2. Target REDcard
  3. Gap Inc Visa Card
  4. Lowe’s Advantage Card
  5. Costco Anywhere Visa® Card by Citi

Secured Credit Card

When your (lack of) credit history prevents you from obtaining a standard credit card, you can apply for a secured credit card. With this, you make a deposit and the bank keeps this deposit in case you do not make your payments as agreed. Many credit card issuers will convert your secured credit card to an unsecured one, as long as you make your monthly payments on time. Don’t worry that a secured credit card will hurt your chances of getting other credit cards because there is nothing in your credit history to indicate that you have a secured credit card.

Here are few of the features/benefits of having secured cards:

  • No annual fee in most cases
  • The deposit kept is refundable
  • Many of these companies provide free tips/education on credit management
  • Cashbacks on certain amount of transaction/purchase at gas stations, restaurants,
  • If your transaction history is satisfactory then such companies may also convert your secured card to unsecured card

Few of the secured credit cards in USA are:

  1. BankAmericard® from Bank of America
  2. Capital One® Secured Mastercard®
  3. Discover it® Secured
  4. OpenSky® Secured Visa® Credit Card
  5. Digital Federal Credit Union Visa Platinum Secured Credit Card

2018 Stock Price of 10 US Companies with HUGE returns after 2008 Recession

After the stock market crash that triggered the major recession of 2008, the US market has now recovered to its longest ever bullish run. If you had invested $1,000 in the S&P 500 index on March 6, 2009 you would have $3,185 today, up 318.57%. Although the figure is not negligible, you could have earned much more if you had invested the same $1,000 in some specific companies.

The US stock market is experiencing the longest bull market in its history. The S&P 500 index is rebounding by around 320%, compared to 9 March 2009.

That day, the American stock market hit rock bottom, but from then on, a stock market rally had begun. Thus, while the S&P 500 index scored 683.38 points on Thursday 24 August, it closed at 2,856.98 points, a variation that represents a 318.57% increase in the selective index.

If someone had the fortune – and the courage – to invest $1,000 in one of these companies on March 6, 2009 when the S&P 500 hit record lows, their profits would have multiplied to a large amount today.

While the profits he would have allowed to invest in the index are already large, there are some companies that are beating the market, with which those who invested in 2009 managed to get even higher returns.

Below you can see which are some of the big companies in which investor would have got the most profitability with an investment of $1,000 on March 6, 2009 ranked from lowest to highest profitability.

Company NameStock Price on March 6, 2009Closing Stock Price on August 23, 2018% IncreaseCurrent Price, if $1,000 was invested in 2009
DowDuPont$16.29$68.11418%$4,181
Walt Disney$16.61$112674%$6,742
Microsoft$15.28$1077,002%$7,002
Bank of America$4.3$30.847,172%$7,172
Alphabet (Google)$154.29$1221.16792%$7,914.7
Adobe Systems$17.16$2571,497%$14,976
Apple$12.18$215.491,791.6%$17,692
Amazon$61.69$1,9023,118%$30,831
Netflix$5.41$339.176,266%$62,693
Avis$0.39$33.738,648%$86,487

The above stock price was obtained from Google Finance and the historical data from the Invertia financial portal.