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Finding your credit card for the first time can be a rough one if you don't know what you're doing. There are a lot of things most people pass by them when they are trying to apply for credit for the first time. While there are some good things you can do, there are also some things you should avoid at all costs in order to get that approval letter in your mailbox. Here are some helpful tips that you can use in order to start building your credit for the first time:
Don't apply for too many cards – My rule of thumb is if you're looking to get your first card, don't apply for five cards at once. Instead, try and apply for one card. After you apply for that card, wait for the letter in the mailbox. If you get approved, that's great, start using it! If you don't get approved, don't get discouraged. There are so many cards on the market. Instead, apply for another one. The reason you don't wan to apply for a ton of cards at once because it can look bad on your credit report. If the companies see that you are applying for a ton of cards, they may become suspicious.
Don't lie – What many first timer's do when they apply for their first card is lie. Credit card companies know how much you make and they know your history. So, don't try to lie and say you make one hundred thousand dollars a year. They have access to many background papers that you may not be aware of. If they notice you're lying a lot on your application, this may reduce your odds of getting approved.
Don't get discouraged – Applying for your first credit card can be a rough one. Don't get mad if no one is accepting you. Instead, think of all of the possibilities out there that you can take advantage of. There are hundreds of banks out there that want your business. Go out there and find them. It took me five applications before I found my first card.
These are just a few things you shouldn't do when you apply for your first card. Keep your head up high and apply for one card at a time as I mentioned above. Don't be afraid to tell the truth. If you only make $7 a hour at the local fast food chain, don't worry!! As an 18 or 20 year old, they aren't expecting you to be a millionaire; we are all humans after all.
Getting that first card can be tempting. Make sure that you watch your spending and you don't spend more than you make. If you start to get bills over your head and you can't pay them off in time, you may want to second guess your card. This is how debt starts and you definitely don't want to go down that path. Getting a credit card can have many rewards. As long as you don't abuse the card, you should have great success with your first credit card.
Forex trading is where you will buy one currency and sell another, or it may be a combination of a few different currencies in total. Your trading involves matching one currency against another. That is, you buy the Euro hoping it will rise against the U.S. Dollar. Which also means you hope the U.S. Dollar will fall against the value of the Euro. This does not mean you wish the U.S. Dollar bad tidings, it is just you are trading using economic information about the two currencies. You can do the same for the Swiss franc against the Japanese yen. Most people probably call this form of trading speculation. But consider that some individuals and groups make millions of dollars daily using the techniques available for trading in currencies.
You would usually do Forex trading using a margin. This means you leave a small deposit with your broker and can trade for many times the value of your deposit. For example, let's say you want to open a trade matching two currencies, and you want to trade for $5,000. You can make a deposit of $50 with your broker, and stand to gain much more than the $50 after you close the trade. You benefit from not using your own money but earning a tidy profit. Of course, you could lose on the trade, but your losses, would be no more than your deposit if you took the necessary precaution to exit the trade once you reached your margin.
You still need a broker as you do in the other markets. With Forex, your broker will open an account for you to make your trades. Different brokers stipulate different amounts you should deposit to your account. Some ask for just $50 to open an account, but you wouldn't trade much on such a small amount. Most brokers set margin at 3-5%, so if you want to open a trade for $10,000 you will need to have on deposit $300-$500. The great thing about Forex trading is that you do not pay a commission on your trades. But don't cry for the market makers just yet. They manage to recover their expenses and profit on all your trades, by picking up the spread between the two currencies you trade. The spread is the difference between the bid and ask prices of the two currencies.
While you may look at Forex trading as pure speculation, you have to consider that to succeed you need to understand the nature of chance as it applies to the market. You may get up one morning to hear the U.S. Dollar dipped against the Euro because exports to Europe fell sharply for the third consecutive quarter. If you take this information without doing further research and decide to trade the Euro against the U.S. Dollar, you are speculating. However, you do not have any solid proof the dollar will continue to fall against the Euro. Successful traders don't only digest the financial news, they also use other tools to decide how to trade.