How would you feel if your labor contract required you to have a credit card? For some of us, that does not present an issue - there are more than 1.2 billion credit cards already floating on the market. However, what if you have been trying to keep away from plastic and there is a dream job that requires possession of credit cards? Is there a solution that would please both of the parties?
Let's face it, with the amount of negative responses towards credit cards out there it is little wonder that some people are not quite eager to get one. Snowballing debts, identity theft and hidden charges don't do plastic money any good. Yet, certain companies are only employing credit card holders. And the reason why someone would do that has nothing to do with partnerships among employers and credit card companies.
Imagine a situation, where your job would require you to go on a business trip. Accommodation and car rentals both require credit cards for reservations and insurance. There are, in fact, services that only accept credit cards as a method of payment.
So, what if you have applied for your dream job, successfully passed an interview and now ready to sign a labor contract. You read through the agreement and notice that one of its points states that a credit card is required. I doubt that you will get a chance to talk this over with the director.
You may have tons of reasons to back up your unwillingness of becoming a cardholder. However, sooner or later you will face a situation where plastic money is needed. Whether it's a card itself or the credit history that you had a chance to establish up until now, credit cards are becoming a necessity.
To help you solve your job requirement issue and at the same time minimize the risks of dealing with debts, you may consider applying for secured credit cards.
Basically, secured credit cards act almost exactly like any other credit cards. There is an application process as well as credit history review. The main difference is that you will have to deposit a certain amount of money prior to using the card. The credit limit is then determined by the size of the deposit.
However, even though the word "secured" makes this card sound safe and risk-free, there are certain things that should be considered before applying.
First of all, determine the size of credit limit that you will need. Keep in mind that the maximum size of a credit line that you are able to get equals the size of the deposit. In some cases, however, banks determine the limit as a percentage of the deposit. Moreover, credit card issuers have a certain limit on the minimum and maximum levels of deposit that you can make.
Next, find out what fees do secured credit cards have. Even though such cards are usually less risky for banks to issue, there are still application and processing costs that can be applied. Read the fine print of the card agreement and don't let high fees gobble up most of your limit.
A common question at this stage is under what conditions your deposit is used. This mostly depends on the policy of the bank. One issuer may use deposit to cover your credit if at least one payment is late, while others may wait 5 to 6 months before touching it.
Secured credit cards are a great way of establishing or repairing credit. Since the credit history requirements are not that of a regular credit card, you are guaranteed better chances on getting one. So, if you feel like getting one without carrying any risks of falling into debt, then go ahead. Look through a few credit card deals and find one that suits your lifestyle best. Moreover, once you get used to credit cards, you will be able to convert your secured credit card to unsecured one, provided that you have shown yourself as a trustworthy customer.
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