The concept of the credit rating has been around for quite a while, but the ability for lenders to check quickly for credit hasn’t. In 1841, the Mercantile Agency was formed in the United States in an attempt to systemize the reporting on debtors’ assets and character.
Considering the technology of pre-industrial revolution there is no doubt that collecting information from commercial debtors across the entire American continent was a tedious process. These unstandardized and hence subjective reports were collected and archived in New York City, where they worked their magic to transmute the ramblings of borrower’s reports into the first credit scores of the day. The first standardized, algorithmic method for this finally came about in 1864 also thanks to the Mercantile Agency.
The origins of consumer credit reporting are even fuzzier, as there wasn’t as much need for it in early America. But by the industrial revolution, modern consumerism was already in its early stages. Retailers were starting to open up lines of credit to their customers. At first, a company’s private credit managers were the ones compiling consumer credit information, and by 1912 had come together internationally to share and manage credit reports, and also further codify how those reports were to be read and scored.
You might also be completely shocked if I told you that by 1968, the reporting had become so comprehensive that there were outcries against having people’s files uploaded into a computer to be shared and distributed. And here you probably thought that today’s dispute around social media and consumer profiling was bad.
Luckily, in 1970 the Fair Credit Report Act was passed, and since then credit bureaus have had to leave out information irrelevant to debt collecting while making their reports publically available.
Though that same information is available today with a click of a button, aren’t you still surprised to know that using computers to compute, manage and share credit reports has been around since the late 60s? Though it is the FICO scoring system, debuted in 1989, which allowed borrowers to move easily between lenders. That, and a well-oiled revolving credit system as well as modern communications network make for an almost instantaneous credit check when you go to meet with your lender nowadays.
Getting a Credit Card On The Day
So now if you want to apply for a credit card on the day- you can- although it may take a day or two to print the plastic and deliver it to your house. Don’t wait to click i dag for directions on how to do this. The application for a credit card looks much like an application for any loan.
Here you are usually obligated to fill out your current income, outstanding debts and assets, and this information is combined with your credit history, compiled, and then processed into your credit rating. Depending on your credit history you may not even get to apply for every card. But thanks to automation, you will know if you qualify for your desired policy shortly after filling out the application.
Bad Credit? Get A Secured Card.
Once you get receive your updated credit score, you will know what other credit card policies you may apply for. If it turns out that you have bad credit and you do not qualify for the card you wanted, you may still be able to participate in other credit building opportunities.
Visa offers its new Chime Credit Builder card that is acts like a credit card in that it will indeed allow its user to build credit, while having a minimum security deposit- but it requires absolutely no credit check and there is totally zero Annual Percent Interest (APR). Therefore cardholders can practice swiping, spending, and going through the same motions as they would if they owned a card that extended them a line of credit.
Fair Credit? Get A Loan
If you are looking for a loan and have fair credit (score 630-689) you can indeed apply for an unsecured card. This means that there is no minimum-security deposit, so you are starting a legitimate line of credit.
Cards such as these may come with policies that help remind the user to make payments in time (i.e. customizable notifications) or assist the user in taking advantage of every opportunity to boost their credit. Further features may include 0$ fraud liability charges, or overdraft protection. I will warn you that cards with multiple conveniences or offered benefits may also charge annual fees. The APR for these is usually very high, and can start at well above 20%.
What To Do With Excellent Credit
If you do not already know, it is well worth it to be aware of and work on your credit. Achieving a credit score of over 700 can unlock a variety of options in the world of credit, as shown here at https://www.thebalance.com/having-good-credit-score-960528 and provide motivation for living an abundant lifestyle.
The APR on credit cards that approve of excellent credit (740-850) can start quite low, and the policy usually comes with some pretty useful benefits, such as 5x air miles per spent dollar, or discounts on travel and accommodations. However, the cards with the most amounts of perks also tend to come with policies that will leave you crying if you miss a payment. These truly are for disciplined users who prioritize maintaining their perfect credit. For them, looking for ways to put their good credit to use is a game that can successfully be played.
Credit Cards Are Fun
Then there are credit card policies that seem experimental, at best. For instance, who on earth would be willing to pay a $995 annual fee for a card that was supposed to give them the right to spend that much in the first place? But that is exactly the case with the MasterCard Gold Card™.
It weighs 22 grams as the front surface of the card comes as a thick 24k gold plate. The cash back policy is a consistent 2%, and the benefits include resort credits of up to 500$ per stay, as well as other top-notch traveling discounts. As far as its function as a credit card is concerned, the regular purchase APR is only 15.24%, and the return payment/late fees are nothing too extravagant in case you were worried.
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