I've never had a credit card, but I decided that I might want to have one for emergencies in Vietnam. After trying to navigate my way through the Visa and Mastercard websites, I was utterly confused about how to even get a credit card and which type I should have. Luckily, my grandfather told me I could just get one through my bank. Who knew?
At the bank today, the young man helping me apply for the credit card was so helpful. He suggested that maybe I would like the Student Card. But when he explained that the limit was only $500, and that the interest rate was about 18%, I asked for another option. What if I needed to get out of the country really quickly, or had a medical emergency, and my debit card wasn't working? $500 wouldn't cover any big emergencies. And 18% is a really high interest rate!
Then the nice bank man suggested the PLATINUM card. Lower interest rate, higher limit. But we thought I might not qualify since I didn't have any credit history. At least, I thought I didn't. As it turns out, though, I have an amazing credit score--thanks to the Student Loan People. I borrowed a few thousand dollars when I went to Spain (since I wouldn't be working and needed to support myself somehow). Since the loan is deferred, it shows up on my credit history like I've paid every monthly payment on time. And voila! An awesome credit rating for not really doing anything. I walked out of the bank the proud holder of a Mastercard with a $2000 limit and a 1.9% interest rate. (Ok, so I wasn't really holding the card--it's being mailed to me.)
The guy also took the time to give me a nice little "credit tutorial". He turned his computer screen to me, showed me where late payments show up on my credit report, where on-time payments show up, how my debt-to-income ratio is established, etc. I really didn't know anything about credit ratings, so the information was really helpful. (Preparing for this trip has been such a learning experience!) And he said that I'll be "good to go" to finance things when I get back if I keep my rating above 720. Just make my payments on time, and don't accumulate too much debt. Sounds easy enough for now.
Although, unless my first check from Fulbright comes soon, I'm going to have start swiping my new plastic much earlier than I expected.
Oh, and Sam's coming back on Monday as planned. Yay! I guess vagina-crossing my fingers actually does work.....
Posts
1 comment:
Will you have a bank account in a Nha Trang bank? If so, you might inquire about the smallest safety deposit box as per cost. Just big enough to keep important things you don't need often, but you can access whenever you do need them. Things like a credit card for instance. I saw this in The Bourne Identity. And I figure, if it worked for Jason Bourne, it's probably a good idea, because that guy thought of everything for every occasion. Also, keeping a credit card in a safety deposit box makes impulse buying more complicated.
Post a Comment