Credit Rating and Credit Cards in the USA
In America, a credit rating is asked on every corner. If you want to buy a completely new car - show the rating, rent a house - the same story. Of course, all this will be sold without a rating, but the conditions will be much less favorable than for people who have a rating that is in order.
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So how do you get a good credit rating in the USA? It all starts with credit cards. Just in case, what a credit card is. This is a special bank account for which there is no money. There is only a virtual limit and you can use this limit to pay for goods and services. About once a month you are obliged to repay all the money spent, then the use of a credit card will be free, i.e. you pay only what you spent yourself, without interest or anything else. Sometimes, you need to register at least one credit card by using special codes and numbers provided by bank. For example, to register a credit card at Capital One bank, you must have getmyoffer.capitalone.com reservation number and access code.
The only known credit card option for fresh expatriates is the secured credit card — this type of credit card when you give your cash to the bank and your credit card limit is equal to the amount you transferred to the bank. This is insurance in case you can’t pay, because it’s impossible to trust you completely, because You do not have a credit rating at all. Your bank freezes your money and you do not have access to it until you decide to close this credit card.
To ensure an increase in credit rating, you need to actively pay a credit card and also actively repay debts. Once a month, the bank sends a report on the status of your credit account to a credit agency, so ideally, at the time of sending your credit limit is used by no more than 30%, then the rating will grow and grow.
Repeat once again: there are credit cards for which you DO NOT need to pay, it’s FREE if you pay your debt on time. In USA, paying credit cards is easy and convenient, right from the phone, and it’s not even necessary that the credit account and the account where your salary goes are in the same bank.
Some credit cards allow you to save. There are actual discounts that you can get if you pay with your credit card. It is immediately clear how much interest each company will return. In addition, many stores issue their own credit cards, which allow you to receive discounts of 5-10%, but this is an option for the future when your young rating will mature and settle down. Some types of credit cards allow you to save on airline tickets, insurances, etc. That is why the people here have not one credit card, but a whole pack - their own card for each case.
There are three advantageous credit cards: Bank of America with cashbacks and credit cards from Amazon and Target, which offer a 5% discount on any purchase.
Cards for which there is a fee for use, as a rule, give such privileges that the costs pay off very quickly.
For example, MyChase Schedule provides bonuses from the series “spend $ 500 for 3 months and we will refund you $ 150”.