Haanji,
The financial freedom in US of A has always amazed me, but as I come from a country where – till the time I was in residence, funda of Udhaar was a big no no – actually I used to think that udhaar is for people who don’t have money.
But the same funda didn’t work here. I have been here now for more than 2 years and I haven’t dealt with cash. The concept of plastic money and its value was realized first when I wanted to buy a cell phone. No – one was willing to give me a cell phone – reason being I did not have sufficient credit history. The company needed me to deposit a 500$ with them for a stupid phone n connection– which they were giving for free – well no – you actually made some 100$ when you get that phone in a contact.
How do I build my credit history then? So that I can get a phone?? I was advised that I needed exactly 3 things – my credit history, my driving license or a state id for identification purposes and a credit card.
Lets just talk about the credit card funda here. Getting my first credit card was not a big problem, my banker applied it on my behalf – the credit limit was mighty 300$, and man I was overjoyed.
As the days went on and I wanted to buy major stuff – my limit used to reach within 2 weeks – so had to keep paying it off regularly. The first 6 months were free of interest = 0%APR – annual percentage rate of interest on the balance accrued. But then I had to make sure that I had to keep paying it other wise I will be fined unnecessarily about 20 – 180$ a month which I surely didn’t want as I didn’t have that kind of money.
Getting my next card was a trick. My choices were to either go for American express or citi. I applied for citi – got rejected – reason being I was not a permanent resident here. L now what to do – I see all my fellow non resident students getting that card approved – why am I being given this spl treatment?
So a close friend, discreetly pointed out the clause to me and I received my first citi card the introductory limit was 2500$ - oh it was too much for me – what am I going to do with it?? And now its about twice that amount :-)
The advice to build the credit history is to use the cards to a max – meaning to use the card at all times for all purchases, phone bills, where ever a swipe machine works –use it and do keep paying them off regularly – that’s the funda to build the history over here. – as far as in my limited knowledge - it seems it has worked.
So when today I applied for my third card and this time its blue from American express, 0% APR for 15 months and no annual fee (this is what I usually look for in a card, besides there are cash back rewards on purchases, free airline miles and I guess citi has the rental car insurance too) isn’t it cool? – I mean isn’t it amazing that I got a 60 sec approval? I am so pleased – and guess the initial limit! - all thanks to the credit history, plastic money. Who needs to use cash anyway – am nervous around it now – more than ever – what if someone snatched my wallet around the corner – I’ll simply call my c-card company and let them know that my cards have been stolen. Well I don’t want that thing happening too – but feels a lil safer and secure with my precious $’s for the moment.
And that is exactly what has inspired me to blog about my credit experience today.
I am happy about my increased spending capacity – but who is going to pay for it all ? - So have a higher limit, but spend wisely.
Regards
Nimrat
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