A department store credit card is a good choice for persons who seek to establish credit. These cards are not offered with lucrative terms in most cases, and it is not recommended to hold more than two cards.
Naturally, you will need an application to obtain a department store credit card. To that, you should go to a department store where you want the card issued. Talk to their customer service and request a credit card application. In some department stores, customers apply for department store credit cards through a computerized terminal. You will use a terminal rather than fill out a paper application. You will be asked to provide the required information, filling out the appropriate blanks and boxes on the terminal's screen. Provide your full name, employment information, address and phone number, etc. Make sure the information you provide is correct as your application may be rejected.
Now it is time to submit your application and depending on the department store, you should either press the 'submit application' button or return the paper version to customer service. After you have applied for a department store card, you should wait 5 to 10 business days to find out whether your application has been rejected or approved.
Once you get approved for one or more store credit cards, you should watch your balance. It should not exceed 20 percent of your credit limit. Remember that higher balances are harder to pay back and affect your credit score. If the credit limit of your department store credit card is $200, your balance should be $40 or less. Make sure you pay your balance as required, and you will improve your credit score. You will also avoid late and penalty interest fees.
Do not overcharge only to get more gift certificates or cash back. Many department stores offer credit cards with rewards in exchange for charging purchases to the card. However, most cardholders spend more than the bonus points are worth.
Pay the balance in full before charging items to your card. Store credit card accounts are offered with high interest, meaning that carrying a balance can be quite costly. If you fail to pay the balance in full, the issuer will add charges to your outstanding balance. Do not charge any purchases to the card unless the balance is zero.
If your application for a department store credit card was rejected, consider applying for a prepaid Visa or MasterCard, as to build credit history. Many banks offer secured/ prepaid credit cards to their clients. With these programs, applicants need to have a savings account where certain amount of money should be deposited. The card you are issued will be linked to the savings account. The money you can spend or your credit limit equals what you deposited into your account.
Naturally, you will need an application to obtain a department store credit card. To that, you should go to a department store where you want the card issued. Talk to their customer service and request a credit card application. In some department stores, customers apply for department store credit cards through a computerized terminal. You will use a terminal rather than fill out a paper application. You will be asked to provide the required information, filling out the appropriate blanks and boxes on the terminal's screen. Provide your full name, employment information, address and phone number, etc. Make sure the information you provide is correct as your application may be rejected.
Now it is time to submit your application and depending on the department store, you should either press the 'submit application' button or return the paper version to customer service. After you have applied for a department store card, you should wait 5 to 10 business days to find out whether your application has been rejected or approved.
Once you get approved for one or more store credit cards, you should watch your balance. It should not exceed 20 percent of your credit limit. Remember that higher balances are harder to pay back and affect your credit score. If the credit limit of your department store credit card is $200, your balance should be $40 or less. Make sure you pay your balance as required, and you will improve your credit score. You will also avoid late and penalty interest fees.
Do not overcharge only to get more gift certificates or cash back. Many department stores offer credit cards with rewards in exchange for charging purchases to the card. However, most cardholders spend more than the bonus points are worth.
Pay the balance in full before charging items to your card. Store credit card accounts are offered with high interest, meaning that carrying a balance can be quite costly. If you fail to pay the balance in full, the issuer will add charges to your outstanding balance. Do not charge any purchases to the card unless the balance is zero.
If your application for a department store credit card was rejected, consider applying for a prepaid Visa or MasterCard, as to build credit history. Many banks offer secured/ prepaid credit cards to their clients. With these programs, applicants need to have a savings account where certain amount of money should be deposited. The card you are issued will be linked to the savings account. The money you can spend or your credit limit equals what you deposited into your account.
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Store credit cards is informational resource, that will help you learn more about credit cards for newbies.
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