Is it 'credit wise' to submit an application for more than
one credit card?
There is no problem with having multiple credit cards. In fact,
many people do. If you abuse your credit and develop balances that
you can not afford, you put yourself in financial trouble and
run the risk of damaging your credit.
How do credit card companies calculate the
minimum monthly payment?
The minimum monthly payment is based on the
account balance as opposed to the particular interest rate. It's
typically around two percent of the account balance.
What happens if I am late making a credit card
payment?
The majority of the credit card issuers listed on this site will
charge a late fee based on your balance. If you carry a low balance,
you may catch a break on the fee. However, if you run a high
balance, you will be faced with a high late fee.
Making late payments on your credit card bills may also result in
higher interest rates being assigned to your account. Before you
apply, read the 'fine
print' of the 'terms and conditions' to learn more
about the late fees associated with any particular card offer.
Also,
late payments are reported to the credit bureaus. Thus, a negative
mark will be assigned to your credit rating. The bottom line, don't
be late on your credit card payments. If you can only afford the
minimum, make sure you pay it on time!
What happens when I charge my credit card over
the limit?
You will have to pay a penalty if you charge your credit card over
your allowed limit. Typically, $29 or $35 is the fee.
My application for a credit card was
rejected. Is it possible to find out why?
All credit card companies are required by law to give
you reasons for a decline of your application. You will need to get
in touch with the credit card issuer directly for the specific
reason/s.
What are some of the reasons for being declined for a
credit card?
Listed below are several main reasons why you may be
declined:
1. You may not satisfy the necessary annual income - For
example, if
your annual income is $25,000 or less, do not submit an application that
necessitates a minimum annual income of $30,000.
2. You have already been declined for several other credit card
applications.
3. You have negative marks or erroneous information on your credit
report.
You should always check your credit history
before you apply for a credit card.
4. You have a bad credit history or a lack of credit. If either of
the two credit categories represent you, we recommend that you check
out the
bad credit credit card offers.
You will surely find a decent credit card
even if you have bad credit or no credit.
If I applied for a credit card and was declined,
does this mean I will be rejected for every card I apply for?
The criteria for approval are different for every credit card.
Therefore, if you were rejected for one card, you can still obtain
approval for another card. Do your research and make sure that you
satisfy the requirements before you apply.
