credit cards

What is a credit card?

Credit Cards or credit cards for most Vietnamese people overseas is nothing new, there have been many posts about this issue and VV just repeat and add little bit only. Since Vivi's main source of income that banks are not for big companies borrowing hundreds of millions of dollars to get word that the interest and fees earned from credit card. Would say you do not believe, much as banks are 100% profits from lending money in a credit card. For example Bank A for his B a credit card with a credit line of $ 500.00 USD and Annual fee is $ 79.00 USD per year interest is 19.9% ​​per annum if his B use the credit line your are interest will be 26.5% per year and each time exceed (over limit fee) will be fined $ 39.00/lan, I B is the late payment penalty is $ 39.00 per time. Have you tried together he would see how much B has money for banks

- Vietnam in the future credit card will be widely disseminated to all levels of society, so we should also find out more about this issue. Vivi will consult with you every step of your credit card:

1 - What is a credit card?
2 - How many credit cards?
3 - Who can apply for credit cards and how to apply?

This is a document that is less useful for anyone living anywhere in the world. Because credit cards and credit are widely used, and in the future will supplant cash

I - What is Credit Card?

1 - The history of credit card:

More than 3000 years ago, as demand requires the exchange of goods and for the sale of the business even more convenient time, the first credit has been used in Assyria, Babylon and Egypt, forever early 14th century pre-site checks (Bill of exchange) and check (Forerunner of banknotes, the newly formed new, debt and bill payments to be solved by pre-paid 1 / 3 cash ( coins) with the rest of the bill of exchange. Until the 17th century the invention of paper money, then buying and selling new exchange much easier.

Mr. Christopher Thornton in 1730, business of furniture (furniture) for advertising and launching the first installment buying in the history of mankind trade. From 18th century to early 20th century. Tallymen who sell clothing to customers by paying weekly contributions. They are called Tallymen because of customer payment records are stored and calculated on a piece of wood (wooden stick) is recorded on a debt investment and weekly payments are engraved on the other end. Installment purchase program, "Buy now, pay later" in 1920 until the new is introduced to the United States, this service is limited in each store.

Man in evolution, as demand requires utilities invented coins (coins) paper money, checks, checks, and also due to demand, in 1951 about Mr. Frank X. McNamara (the birth of your credit card) has established the first company to issue credit cards, 200 tokens, the first credit card issued to the rich and famous in New York society and the the card is only limited use of 27 restaurants in New York at that time so called Diners Club American Express Company is under the heel to deliver his Diners Club American Express card, because the only restriction for use in catering, tourism, so this card has not been widely disseminated to all levels of society and not be seen as a magic card (Card Magic). Parallel to the introduction of the two cards retail companies, petroleum also released a card called the Charge Card is also limited to only spend the interest in this card issuers only. As Sears card purchases only at Sears, Shell, the gas only at the Shell gas stations, etc.,. So the card magic ever invented?.

- During the First World War II All credit card and charge card use has been banned until after World War shall be widely available again. Because income from credit card offers pretty much the bank should begin hands dirty. However, still used in local retail stores. Until 1970, when computer technology began to develop the basic system for "The Standards for Magnetic Strip" is formed, then the Credit card industry really flourished and become a part of Information period "Information Age"

The magic card "Revolving Credit Card" was first granted to the user in California issued by Bank of America should be called BankAmericard and rapidly widespread across the state. The card magic began a major step forward in the credit card industry. BankAmericard card user has a choice in the payment of money. They can pay off a time or paid in each month (minimum payment) the amount of missing the remaining banks will start charging interest. This method is further used to this day. The card will also add the advantage that if anyone is interested in financial trouble, the user (cardholder) the banks can borrow money without completing the loan procedures nuisance (fast, compact, fast).

For the convenience of this card and demanding customers, Bank Card Association was formed, in 1965 Bank of America has licensed (Licensing) for banks large and small throughout the United States, allowing the BankAmericard bank card for customers to use (of course have to pay for Bank of America). By 1969 most of the credit card by the bank were transferred to independent or MasterCharge Card BankAmericard cards. So can you say Bank of America is the birth of this miraculous card and the income brought from the card has contributed to Bank of America from a local bank (local bank) into a of the world's largest banks.

Credit cards issued and more, the processing of invoices for each account (account) so much that the banking system does not cope well and which led to the birth of the credit card associations (Credit card associations) as Interlink Association, Western State Bank Card Association, Inc. and National BankAmericard. During this period the electronic invoice may be chemical, still use paper bills (1 visitor purchases or cash money, the cashier would have to call to pay bills (approve charge) after the issuing bank (Bank Issue) will agree to pay to the recipient (merchant) a number (authorization number) and then get an invoice recipient (including 3 copies) and credit card bills put this on a machine (Imprinter) coffee through coffee again (slide) several times to the numbers on the card down in the invoice, then enter your license number, telephone number and signature of the cardholder (cardholder). a written communication to customers , a deposit in the bank and keep a copy recipient. The Vietnamese we often joked when paying by card are individuals (details in the article would say "Hows the banking system work). Only one transaction alone mhu lost so much time, try thinking of you every day banking transaction processing hundreds of millions of how long it takes. This is an opportunity for those who "told me to eat" have the opportunity to feed Credit card fraud (discussed separately in this section)

As mentioned above, in 1970 until the advent of the computer (it's IBM computer as big as a wagon), the new cheap credit card industry across a broad scale road Theng. Allows the card (retail merchant or Establishment) get paid by card 24 hours a day and also reduced a considerable amount of paperwork.

Mid 70 gentlest credit card industry to find buyers on international markets, but encountered some obstacles because of the word should BankAmericard changed America for Visa and Master Charge because of a lawsuit has been changed to Master Card

About in 1979 thanks to the advances in electronics and personal computing (PC personal computer & electronic) credit card industry a step further back matter. This progress has enabled the card "scrub" swipe your card through your customers (dialup terminal) and all procedures are electronic goods (electronic processing) should have saved a lot of time and money while also raises the old paper recycling industry (paper recycle) some Vietnamese people are enriched by this recycling industry (recycling Industry)

2 - How many credit cards?

1 - Charge Card - also known as department store cards, including all credit cards issued by retailers such as Sears, JC Penney, Macy 's, Target, K-Mart, etc., type This card allows the restriction will only be used, in the shop of purchase card issuers only. For example Sears card only at the Sears stores, other stores to buy customers can not be paid by Sears card.

2 - Gasoline Card - gas card or such as Texaco, Shell, BP (British Petroleum), Chevron, etc,. This category is similar to Department Store Card, customers used to detect gas pumps at gas stations and buy junk food because of the effect that gas stations sell only. For example, you hold the card, only to Shell's gas and buy snacks at the Shell only

Today most retail companies of the United States (from dress shoes, jewelry to TV, computers) have installment purchase program by allocating two types of consumers on the card. Two types of interest is calculated is very high (from 19.99 -> 26.99% per year) that credit line (or lack of money can buy not more $ 300 - $ 3000). But if you do not have credit, then this is one of the ways to start a credit, because these companies they consider a card application is easy, provided you do not have too bad credit . Both the two types you do not have to pay the annual fee Annual fee

3 - American Express:

Regular A-Card American Express cards is usually dark green. If you do not have good credit (good credit) and low income when they apply for this category. Credit line is not limited to, depending on the amount of money you have in your bank account (checking account). this type you must pay a high annual fee (about $ 79 USD a year). Invoices are sent to you each month and must pay off one time. For example in the last month you spend $ 500 they must pay off one-time $ 500.

B-American Express Gold Card: Conditions that you must have incomes above $ 30,000 per year. How to use similar types on

C-American Express Platinum
Unlike two types above are only available to customers preferences only (Preferred custumer, by invitation only) the amount specified by spending up to $ 100,000 USD, which does not require customers to have money in bank accounts . Bill still have to pay a second time as the type

Since the competition of other kinds of credit cards, and because customers complained about the pay off is required to give a time and not use the more common American Express, American Express lost a large number of customers, for AE should also change the style of business. American Express Optima card was released, allowing the CARDHOLDER (who can AE) paid monthly, and they charged interest (Interest charge). This card is very successful and has brought to American Express a significant source of income. AE then came out with more American Express cards also THE BLUE customers more choice when applying for a card is the charge card or credit card (that is, depending on the options for paying off the old cards one time, or pay a monthly installment, installment type shall be sentenced to spend the money (pre-set spending limit.) All of today's American Express card has two types OPTIONS above.

LIST TYPES OF AMERICAN EXPRESS CARDS

CHARGE CARD (infull paid each month)

Consumer Cards
* Green Card American Express Reward
* American Express Preferred Green Card Reward
* Gold Card American Express Reward
* American Express Preferred Reward Gold Card
* American Express Reward Card Plus
Platinum Card *
ONE Financial Account Cards
* American Express Preferred Reward Gold Card
* American Express Gold Card
Platinum Card *
Fidelity Cards
* Fidelity American Express Gold Card
Fidelity American Express Platinum Card *
_www.americanexpress.com

Visa & Mastercard

* Http://www.bankone.com
* Http://www.bankofamerica.com
Two types of cards can say the same, differing only in name. This type of card is the most common & most popular guests from past to present. This card is the business of all accepted (you can go to any retail stores, gas stations, airlines, banks, restaurants, websites etc.,) to buy goods or withdraw cash out. (Quabg3 earlier reports of American Express have a saying, "Don 't leave home without it" But VV found this true for more VISA & MASTERCARD, because many stores are still not receiving AMERICAN EXPRESS (The reason is probably the service fee AE above).

VS & MC card type allows the user (cardholder) to purchase goods or withdraw cash very easily.

VISA & MASTERCARD TYPE OF CARD

Regular Visa & Mastercard * http://www.bankofamerica.com/
Credit lines start at about $ 500 USD to several thousand dollars of this type for people with low credit score (credit score) or begin to create new credit. The fee of this type are relatively high (about $ 39 per year)
Gold Visa & MasterCard * Gold http://www.bankofamerica.com/
Credit lines start at $ 5,000 USD or more. Most banks are exempt from annual fees (if any bank has the money, about $ 50 USD per year
Platinum Visa & Mastercard * http://www.bankofamerica.com/
This category is usually reserved for those with credit scores higher (about 730) and with annual incomes are relatively high. Credit lines start at least $ 5000 USD / $ 10,000 but the USD is starting normal

* Visa & Master Card Secure http://www.vietdiscover.com/
For those who have no credit or bad credit. You must deposit (deposit) money in the bank. credit line equal to the amount you deposit in the account
Student Visa & Master Card * http://www.citibank.com/
As the name for students, credit line is only about several hundred or more

Credit Card Affiliate
This category is due to cooperative banks with the company, or shop for distribution to customers, now most customers prefer this type because there are many advantages, such as rebate, or cash back, or free Free airfare, etc.,

ATM & CHECKCARD
As the bank card (debit card in the computer) ATM (Atomated Teller Machine) with the symbol VISA / MASTER CARD on the card. This category is a combination ATM & secured credit card, just used as a debit card, both as a credit card. The amount paid is deducted instantly in your bank account. Common name for these cards as card check, anyone can apply for this category, creline equal to the amount you have in the bank, when using this card (for ATM transaction), if you withdraw money from machines not the bank then you will be charged about $ 1.00 -> $ 3.00 USD for each use. (Question of the ordinary sales person asks you, when you pay by ATM or CREDIT card is, you say ATM will be charged an additional $ 1.00, also said they do not have anything CREDIT

3 - Who can apply for credit cards and how to apply?

Before going into details how to apply for credit cards, we should find out about CREDIT SCORE (FICO) CREDIT BUREAU (hosting company credit file) because the elements of this ye have great impact to the decision of banks, when considering an application card customers.

There are three companies in the U.S. maintain a record of all credit card customers

Equifax:
CREDIT BUREAU name formerly Incorporation (CBI)
Equifax Credit Information Services, Inc.
PO Box 740241
Atlanta, GA 30374
_www.equifax.com
Experian:
Name formerly TRW
Experian
475 Anton Blvd.
Costa Mesa, CA 92626
714 830 7000
_www.experiance.com
TRANS UNION
TransUnion
Post Office Box 2000
Chester, PA 19022
_www.transunion.com

Experian in the three companies can say contains the most complete documentation, records of each, and also said the most difficult when you have something they want to settle for.

Credit file (credit file) contains everything related to that person such as name, address, employment, accounts etc.,

View Sample Credit Report

Credit Score - Credit Scores

Vietnamese in America when you go buy a house or a car loan should the bank, she frequently heard his estate, or saleman car dealers say credit score of his / her only 620 points from enjoying the lowest interest rate. Grandma often wonder what the hell is a credit score, and be like? questions, but most offer no good answer seminar, sometimes a fatal error. Someone said the credit card he / she should point it is much too low and so on and so forth, crawling everywhere all the numerous reasons, but why so few people there is no answer. In this section viviy2k will go into detail how to calculate credit scores to see her children and that we can improve your credit score up (especially those who have had past bad credit or want to Bankruptcy debtors back to life)

A - FICO

Credit Score had a long, about the company in 1956 by Fair, Isaac Corporation invented credit scoring, these companies keep secret their score sheet, although many people have very good credit but banks were refusing to lend money for whatever reason, then no one knows. So consumers complained to the government year after year it is, until in 2001 the Credit Reporting FAIR ACT laws be reformed, people understand more about credit scoring, however, remains obscure difficult understood. Even a mortgage professional (20 years in the profession) have a wrong answer to the question of harm many Vietnamese living in America (VV waiver names). VV would like to first talk about how credit scoring basic:
- 35% of the score is based on your payment history.
- 30% of the score is based on outstanding debt.
- 15% of the score is based on the length of time You've had credit.
- 10% of the score is based on the number of Inquiries on your report.
- 10% of the score is based on the types of credit you currently have.

- 35% of the score is based on your payment history.
- 30% of the score is based on outstanding debt.
- 15% of the score is based on the length of time You've had credit.
- 10% of the score is based on the number of Inquiries on your report.
- 10% of the score is based on the types of credit you currently have.


35% of credit score is calculated according to the history of debt repayment. Your bank does not need to pay much or twice the minimum amount (minimum due) which only requires (require) the debtor to pay on time, right day (due date). Example: You borrow the bank $ 1000.00 pay per month is $ 30.00 the day it is on a per month (due date is the 1st every month) means you pay the minimum (or more) $ 30.00/thang before 1 / each month. You can not pay $ 60 this month is clear from the next month I think paid off because I had paid twice for the month.

Collectibles from the VTF, the old posts on cuasotinhoc.vn trungvan