Credit monitoring & identity theft protection | CFPB & FTC

Category: Credit Card

CC: Can I get a credit card or not?

Different phases of a consumer life cycle possessed different needs & wants of credit cards whether or not financial institutions observe internal banking practices. The compression of credit life cycle has led to many banks and credit card companies opening up to those who don’t have a credit score or lower credit scores. One best option is to attract your credit card agencies using your credit report. Let the banks & agencies come to you!


Which credit card is easiest to get approved for?

Credit card companies – running a business in providing credit to good & bad consumers requiring the debt for corporate or individual purposes. There is a variety of credit cards to choose. The best credit cards are reserved for consumers who prove their abilities in financing debts on time and having a good credit score.


2018 easiest credit cards to get approved for. Let’s observe the list of prominent cc tiers:

Best for Card name Annual fee
Low annual fee First Progress platinum elite Mastercard (secured) $29
No annual fee Fingerhut credit account $0 or None
Unsecured lending Credit One Bank platinum visa for rebuilding credit $0 – $99
Business cc Capital One spark classic for business $0 or None


What is the easiest credit card to get? Let’s observe the list of easy credit card:

Best for Card name Annual fee
No min. credit score Green Dot primor visa classic secured credit card $39
No credit check OpenSky secured visa credit card $35
Low annual fee First Progress platinum elite Mastercard (secured) $29
No annual fee Fingerhut credit account $0 or None


After credit cards comparison, you do realize on the importance of knowing your client (KYC) and knowing yourself. Do not rely on banks to perform KYC compliance checks or credit reviews. You’ve to assess your existing credit report & credit score. In doing so, you enhanced the probability of obtaining the best credit cards in 2018.

Note: Credit card agencies choose to do business with you or not – Choice.

Search for: What is a credit card? | Conduct regular credit screening.


Which credit card is best for rebuilding credit?

Rebuild credit history – an important way of letting new & aged lenders know your financial competence in borrowing credit. Building up credit is one thing. Rebuilding of credit histories is another. Prove your existence to the banks or cc companies that you can effectively do an aggressive credit repair.


Which credit card is best for rebuilding credit? Let’s take a look at the higher probability ones:

  1. Capital One secured mastercard: best for low deposit initially.
  2. OpenSky secured visa cc: best for no credit check (review more at cc comparison websites).
  3. Discover it secured card: best for rewards & upgrading – popular consumer choice.
  4. Digital federal credit union visa platinum secured cc: self-explanatory choice.


How about the best credit card for bad credit? Let’s see what are the available choices:

  1. First Premier Bank cc: unsecured lending at 36% interest & $95 processing fee.
  2. First Premier Bank secured cc: lending at 36% interest & $200 security deposit fee.

Choosing the best credit card for bad credit is a skill. You need to have certain knowledge in financial information before going shopping for a cc spree. Always do a comparison online for new credit cards and weigh out the pros & cons of credit cards with a bad credit.

Note: Never apply for all the credit cards above when your credit is bad.

Search for: Pros & cons of a credit card. | How do I restore bad credit?



What is considered a low credit score?

Good credit score – one of the best financial indicators for banks to understand your financial competence in managing credit. A credit score is often inquired by local & foreign lenders in determining the best interest rate to offer you. Excellent to good scorers usually get better rates when comparing to their counterparts of bad credit scores.


Here’s some common examples of what is considered a bad credit score:

Good credit score: 680 to 699 (Average of 682 among Americans)

Average credit score: 620 to 679 (OK credit score)

Bad credit score: 580 to 619 (Needed some help)

Poor credit score: 000 to 579 (Aggressive credit repair needed)

It is not an uncommon sight to see debtors having 0 credit score. Some people might be fresh graduates in the working society while others just ended their bankruptcies. You’ve to try avoiding such dangers in obtaining a poor credit score, not to mention dismissing a zero score.


There is no universal way of credit rating. Different credit scoring models are used to determine your credit scores so don’t be shock to see several agencies quoting similar (but not exact) figures during hard credit inquiries. It’s difficult to remove bad information once the info is validated as an accurate one.

Note: Ask several credit scoring agencies before performing aggressive credit repair.

Search for: Fix my credit the right way. | What you need to know about a credit score.


How can I get a credit card with bad credit?

Bad credit cc – good way to boost your existing poor credit score. A good debtor does not necessarily have a good credit score. It simply means financial circumstances not being ideal at that point of time. Creditors such as banks & credit card companies wanted to establish long-term relationships with people like you.


Before applying for a credit card with bad credit, here are some important financial factors to consider:

  1. Know your enemy, know your credit score: do not assume that lenders are lenient in granting you access to free credit.
  2. Go unsecured lending first: try to request for an unsecured financing loan for a mortgage, a credit card or a personal loan.
  3. Avoid flashy cards: never attempt to take up new ccs or anything that destroys your financial credence.
  4. Go secured after unsecured: if unsecured lending does not work out, try secured financing by pledging a security deposit.
  5. Try a prepaid debit card: the safest way of rebuilding credit is to use a prepaid debit card just like any other students or account holders.


Although there are no guaranteed credit card approvals, you can still try applying for some of the best cc mentioned above with no annual fee & no credit check. It’s because signing up for cc is not a big deal and does not affect your credit score. Only thing is whether or not banks decided to proceed with your application.

Note: A good debtor has to convince lenders in approving for new credit cards.

Search for: How can credit repair programs help? | How to buy a car with bad credit?


What credit cards to get with no credit?

Free credit cards – best credit cards for no credit in year 2018 are available online for reviews & assessments. When credit card companies rolled out new campaigns, information is spread over the net like wildfire. It is a viral topic for many aspiring consumers to sign up.


What credit cards can I get with no credit? Here is a list of cc without requiring any credit:

Best for Card name
High approval odds OpenSky secured visa cc
Light users Capital One platinum cc
Heavy users Capital One Quick silver one cash rewards cc
Fresh graduates C1 Journey Student rewards


Do not attempt to sign up if you’ve declared bankrupt or still have existing outstanding balances to be paid. Banks and cc agencies performed detailed credit checks on your current financial conditions to determine the eligibility of debt responsiveness. Applying for unsecured lending does jeopardize your credit report for bad debtors.


How do I build up my credit if I have bad credit? Instead of tapping on existing financing sources, it is best to repay off debts first & apply for secured lending. Chances of secured cards being approved is higher as banks transferred the risk of delinquencies back to consumers.

Note: A bad credit score does not equate to immediate cc rejections.

Search for: Boost my credit repair! | Prevent identity theft fraud!


Good to know about cc: can I get a credit card or not?

Major credit cards – Mastercard & Visa are two prominent figures going head-on. Before diving into the sea of cards, please be informed that major credit cards and charge cards are two different set of current accounts. The former having flexibility in debt repayments while the latter not having flexibility and requiring to contain full payment each month. Always check with a credit card officer when in doubts.


People also ask:

Do store credit cards build your credit?

What is the grace period on a credit card?

How can I rebuild credit fast?

Can you apply for a credit card without a bank account?


Quote of the Day: “Choose wisely – KIG Hall [2013-2018]”


Relevant Topics

» Highly effective cr techniques: How to win a dispute?

» Aggressive credit repair: Challenge your creditors!

» Hire reputable credit repair companies: Who do you trust?

» What you need to know about a credit repair: Knowledge is freedom!

» Dos & don’ts of a credit repair: Dos and dons of a credit repair!


This article was originally published on March 20, 2014. It has since been updated. 

Pros & Cons of A Credit Card

How much do you know about your credit cards? Being a cardholder, there’s way more benefits once you acquired the competence of performing credit control at your end, considering the fact of management of unused credits. Understanding the pros and cons of a credit card, you’ll have an idea on various ways of handling the card to your utmost advantage. The best choice of consumer credit cards in 2018 can be found here. Learn about the pros & cons of your credit cards.


Pros of doing a credit card

Most consumers are aware of the benefits gained from the cards. Not many, however, knew the right way to fully optimize their advantages in being a high-quality cardholder. Take this opportunity of learning the advantages of credit cards:


1. Wide range of credit card benefits in shopping malls or store outlets.

People often misunderstood that your store credit card, a new credit card, a line of credit, or any other cards, cannot be crossed over to another shopping district. Wrong! The matter of fact is that such cards are available across malls & even over the borders of United States, United Kingdom and till ends of Asia pacific regions.


Below is some feedback of real users who successfully consumed using their credit cards:

  1. Visa card or mastercard: Most banks do a tied-up with local & foreign shopping malls, accepting the following brands for merchant processing: VISA & Master. The code is fully encrypted for consumers to indulge safely and not needing to worry about a potential credit card fraud.
  2. Shopping malls welcomed you: A visitor from either locally or abroad is often welcomed by domestic shopping outlets, be it a hsbc credit card, american express, a black card, a gold card, or any other platinum card services.
  3. Merchant card processing invention: Today, online credit card issuers like Paypal, Amazon, eBay, C.J., or merchant departmental store credit card, are widely available locally. Feel free to swipe over-the-counters at any transacting point.

A quick way to learn about proper usage of your cards, it’s possible to consult any retail store assistant in finding out the right credit cards to use, providing you with the best reward points as well as getting a huge discount on certain costly goods. The benefits could be priceless & incentivized you to remain loyal to either a brand or merchandize inventory.


Also, when in doubt, do not be afraid to contact your credit card agent for financial assistance. An officer shall review your credit limits and make a decision in letting you go beyond the coverage limits while informing you on the increase in credit score. Some people tend to benefit more from boosting their individual consumption in the long run.


2. Apply online for a credit card.

If you’re searching high and low for an ideal credit card in 2018, it’s time to leverage on the Internet for some suggestions. Most consumers have a certain form of understanding in the types of credit spending but unsure of the choices of credit cards bank do offer to them. True! You tend to go online and do some research on various options in getting the best deals in town.


Below are some benefits being targeted for online credit card applications:

  1. Cash back vouchers being distributed: One common way credit card companies attracted users to apply online is cash back. A successful applicant will receive an incentive of approximately $20.00 to $80.00 cash rebate. Some applicants do get a total of $120.00 bill offset in credit, however.
  2. Annual waiver for a credit card: A major concern for card users to apply for multiple cards is due to the annual fee that banks or credit card agencies charged. As a result, a bank’s marketing campaign may include one-year free annual waiver or sometimes up to 2-year worth of credit card waiver.
  3. Credit card dispute or fraud case: Another problem many card companies faced is on personal identity theft frauds. The bank often liaised with a credit bureau, a local government, or the police to prevent identities theft.

Additionally, most credit card firms invested heavily in cyber digital security technology to guard against loss of personal information, identity theft, credit card info leakage, or other probable criminal offenses. The firms too banked on premium card insurance, costly credit protection, and defensive mechanisms, to control frauds in a credit card.


Upon applying for a new credit card, being a master to your card wallet, you’ve to perform similar preventive measures in protecting your money. Borrowed money can be dangerous if anyone has access to your cash or credit card. Don’t walk-in to a shady store or purchase illegal objects for a lifetime. A credit card swipe might be forged across borders for anonymous transactions to be carried out while domiciling locally – legal repercussions might occur.


3. Compare & review websites for credit card choice.

An advantage of choosing a credit card is global informational sharing. Many consumers often surfed the net to do a detailed credit check: Online review websites or comparison portals. It does help better in educational learning as well as making informed decisions in whether to apply for a AMEX rewards card, VISA or Mastercard, merchant store card, or a balance transfer credit card.


Below are some prominent credit card comparison websites for you to decide on:

  • 1st Option – Nerd Wallet website: An extensive range of credit card choices as well as suitable ideas on the types of categories to be used. There’s no obligation to sign up for the site’s newsletter for the latest credit card promotions or personal finance too.
  • 2nd Option – Moneysense credit card portal: A prominent website demonstrating a wealth of experience in dealing with credit card agencies. The firm does offer an enormous range of credit cards in a table format, enabling ease of choice selections.
  • 3rd Option – Anything else: Some consumers like to base their preferences on the suitability of credit card online comparison websites. In doing so, they’re more comfortable revealing certain personal information such as monthly wage scheme, incentives, bonuses, or other sensitive identity.

Notably, in choosing the best credit cards, you’ve to be careful on the information being shared across the portal. Please ensure that the website is at least 128-bit encrypted and not storing any of your credit card details during the entire process. This is to protect you against unforeseen damages such as credit card theft or fraudulent attempts in securing your card details.


A compare & review credit card website is highly recommended. You’ll have the luxury to opt in for new credit card reviews while being informed on the latest promotions or hot deals that credit card companies enticed you. Just remember not to reveal all of your local information like address, billing details, or personal identity – simple things like emails for subscription is sufficient.


4. Be the choice of credit card companies.

Instead of getting frustrated on bank rejections, be the first in-line to be accepted widely by a range of card issuers. Consumers don’t have the “say” considering the fact that compliance & internal banking teams conduct KYC processes without informing customers. You may or may not obtain a bank’s or credit card company’s approval after sending in your application.


Below are some strategies to attract credit card companies to provide you with the best rates:

  1. Excellent to good credit score: A good credit score of 609 and above does entice your banking service provider. By having a high-quality credit control, you’re in the radar for credit card agents to contact you for an attractive interest rate & financing terms for installment purchases.
  2. Do a credit report cleanup: Don’t wait for your creditors to ring you up for unpaid debt obligations. This will lower your chance of a credit card approval. It’s necessary to perform credit repair by cleaning up your bad credit history.
  3. Be sure of what you want: Without a clear idea of what you wanted, 10’s or even hundreds of credit card services will not impress you. Banks or local credit card firms don’t target such consumers due to mismatch of card benefits and wrong credit utility ratio.

Therefore, it’s imperative to observe some financially renowned guidelines in getting the card service providers to entice you. An excellent credit score of 800, a thorough credit cleanup service, or the right financial decision, is the right method of attracting lenders to offer their best services for you to benefit the most.


Be the choice of lender’s credit card selection today! Forget about the idea of attracting them to choose you but adopt the methodology of getting accepted into the list of dean records. A credit card company will not attempt to offer if there’s a mismatch in campaign selection or even a bad credit score report.


5. Ample time in having a credible payment history.

Assuming you’re applying for a business credit card, a platinum visa card, or a company credit card, chances of you requiring to prove your credit history is high. It’s important to list out your past current accounts and revealing your payment history, demonstrating strong debt repayments to your lenders.


Below are some evidences as proof of payment history for you to show any financial institution:

  1. Previous personal consumption in credit cards: Looking for a debit or credit card application, the first thing your lender looks out for is your past borrowing records as empirical evidence. Your track records are critical for them to make a financial decision in whether to loan out or not.
  2. Missed payments or late repayments: Another factor credit card company looked out for is on debtor’s responses. If you’ve a long-term timely repayment progress, credit card firms will offer you quality interests at lower rates as opposed to someone who frequent late payments.
  3. A good credit score in a personal credit report: When a credit check is conducted, likely an inquiry from a creditor, you’ve to prove your excellent credit score via your credit report – increasing rate of approval & lowering the rate of interest too.

Don’t let a bad credit report affect your financial health. It’s usually the (root) cause of every borrower not being able to get a smooth transition in a personal loan, a mortgage to buy a house, a loan to buy a car, or payday loan to tide through sudden medical fees. Emergency funds are too part of this entire financial planning conceptualization.


A good & long payment history, low outstanding amount and early prepayment, is what your lenders are looking out for. This provides a clear indication that their invested funds are issued out in a credible way considering the risk of delinquency. Regardless, you’re held responsible for any source of funds borrowed from a financial institution – banks or credit firms.


Good to know about pros of a credit cards in year 2018

Generally, you’re empowered to utilize your approved credit cards. Do not indulge in pricey objects that may lead to:

  • Loss of trust among creditors – payday loans, local banks, funds houses, credit card companies, or any lenders.
  • Breach of contract & termination of services – unpaid debts & liabilities.
  • Inability to repay loans – compensating with penalties & fines.
  • Credit card interests – generating a rate of interest higher than principle debt repayments.
  • Bad information reported – credit card agencies reported your bad debts & objects.
  • Rightful claim of assets – debt collectors coming to claim on your personal assets.

As you can see, these scenarios are not just for show but to prove that such cases of rightful claims and listed bad information in credit report cannot be deleted by payment or easily reversed. You’ve to protect against potential identity thefts as well as any unfortunate financial disasters.


Cons of credit cards

Many consumers only looked at the benefits & advantages of using a credit card, not many wanted to understand the implications of misusing or wrongly utilizing as cardholders. On the façade, it might look simple by just swiping slosh credit available. Do you think it is that easy behind-the-scenes? Financial institutions had invested heavily on marketing & data analytics companies so as to bolster economic spending at the sacrifice of local and foreign debtors.


1. Risk of delinquency & getting into financial implications

Recently, credit bureaus reported a long list of outstanding debtors who failed to repay their loans completely or even defaulted. The banks and credit card companies don’t exercise mercy on those who missed payments, late payments, failed to make payments, or don’t intend to issue payments – statistics reported that up to 60% of American consumers often faced difficulties in debt repayments.


Let’s take a look at what exactly you’ll be involved during a credit card dispute:

  1. Getting sued by local banks & creditors: A sure way of sending lawyer letters to your mailing address demanding for immediate payments else subjected to penalties of law.
  2. Sending debt collection agencies over: Another unscrupulous attempt of trying to retrieve bad debts or unpaid liabilities.
  3. Mortgage foreclosure on your home: Loss of roof for you and family members.
  4. Repossession of cars or autos: Driving to your home to seize control of your vehicles.
  5. Rightful claims on personal assets: Upfront pasting “sticker” tabs on your individual assets which will be collected upon judgement.
  6. Facing a jail term: One proven method in instilling fear to debtors.
  7. Filing bankruptcy charges: Credit card companies often filed bankruptcies to credit bureaus and local governments.
  8. Forced you to sign agreement with bad debt companies: Debt consolidation agencies & bad debt companies find this lucrative business by generating a profit margin.
  9. Lowering your credit score: Creditors reported bad information and listed all negative objects (sometimes overdoing on unpaid claims).
  10. Extend your bad debts to increase interests – You’ll be forced to sign an agreement on bad debts to repay for a longer term and at higher financing costs.

Evidently, you’ll not be able to pay reparations and complete full debt repayments. The motive is relatively clear on generating a profit out of your bad debt situations when they’ve the onus in their favor. Local bad debt collection companies do profit from such businesses as banks, financial institutions, credit card firms, law agencies, or other lenders introduce new debtors to them – a double win orientation for both parties.


A risk of delinquency is not a joke. Financial repercussions such as the above mentioned 10 reasons of not choosing credit cards cannot be undermined. It’s your responsibility to adopt prudent financial practices as well as choosing the best credit cards. Don’t let the credit card agencies earned higher rate of interests in exchange for petty benefits, it should be the other way around as they’re operating a business for you.


2. Credit card info being publicly exposed.

Another peril most consumers are fearful of is the alarming growth of loss of personal identities. Local media agencies had been constantly reporting the rate of public & private individuals losing their businesses and reputations after their identities had been revealed, not to mention smaller cases of credit card frauds.


Since each of you had been victimized by identity theft, observe the following guidelines:

  1. Never sell your credit card info online: Many consumers get legally involved after selling their credit card details for a lucrative sum. It’s not simple as sale of personal information but the matter of fact being a criminal offense.
  2. Never divulge your personal credit card info: Inversely, most people got attracted to reduced financing interests on mortgage loans & free credit card annual fees for life – these are not going to happen unless you possessed an excellent credit score report.
  3. Freedom of speech: Do not believe anyone who say in the internet. It’s obvious that social medias are blatantly looking for debtors to squeeze a profit!
  4. Challenge logical assumptions: It’s imperative to do an intensive credit card review via review portals or comparison websites for credit cards.
  5. Victim of identity theft: Never fall for debt trap when anyone (including credit card officers or local credit bureau officers) who tried calling you to fish for info.

Loss of personal identities and stolen identities are major hazards, detrimental to your financial health. If you’re serious in repairing bad credit, to obtain the benefits of using a good credit card, ensure that your particulars are securely guarded. Install a firewall on your computer, invest in a good bug protection system, or buy an insurance to cover the pitfalls.


3. Empty promises of using a credit card.

There are many ways a credit card company, a bank, a financial institution, or any lenders, can promise you the benefits of using a new credit card. It’s not (really) true to say that all promises could be fulfilled to your expectations, let alone using every benefit to your advantage. Many card companies abuse this privilege for promotional purposes but under deliver their promises – bringing dissatisfaction to eager consumers.


Let’s take a look at some of the “best” guarantees in using a credit card but failed to materialize:

  1. Cash back credit cards: One empty promise from credit card companies is guaranteed cash back. More often than not, the departmental stores rejected such cash back credit cards and mentioned only to use in-house store credit cards.
  2. Offset grocery bill payments: Another common dispute charge raised is on grocery shopping. Bills cannot be offset at times due to certain restrictions among giant retailers – you might get frustrated over expired promotions or new offers that an aged credit card cannot function!
  3. Smaller retail outlets: Some apparel outlets are homegrown and do not accept major credit cards as form of rewards points. You may like a dress or a suit but the lack of incentives strongly discouraged you from purchasing the items.
  4. Wrong credit card signup application: A few newly joined credit card officers don’t know the financial system well enough to promote the right offers to you. Ended up, you might be furnished with a massive 20-30 credit cards in your wallet!
  5. Overapplying for many credit cards: If you’re looking for various rewards, loyalty points, and cash back rebates, chances are there’s an integrated credit card waiting for you. But, you might not find an ideal card as the clauses are in a mess for a guaranteed credit card.

Over a period, you tend to understand that a bank’s credit card may not satisfied you requirements. It’s not exactly a disincentive but definitely a turnoff factor for those who wanted to leverage on the bank’s connections & partnerships in attempt to build a good credit history. The benefits of credit cards might not outweigh the cons of using a credit card hence getting you to re-think again in applying for multiple cards.


Once a word has been marketed out, it’s difficult to retract back the marketed ideas to consumers in new credit card branding as well as paying for damages done. You may have a bad impression on the major credit card companies while not intending to sign up for new credit card offers. Do not be disheartened and try to find via comparison portals for quality deals.


4. Lack of credit limits to be used.

Sometimes, you’re trying to apply for an installment plan for a furniture, a new auto, a renovation loan, or other insurance plan. It’s frustrating for you to swipe your credit card a few times but to no avail. This is because the daily or monthly credit limits had been blown up long ago. You’ll be anxious to see that the object you settled for might not come into reality.


Let’s take a good look at some of the plausible reasons why you short of credit limits:

  1. Overspent on luxury goods: One problem many customers faced is on an extravagance lifestyle. Luxury goods often costed your individual credit card consumption to implode, thereby leading to insufficient credit card limits.
  2. Too many installment plans: Another common issue is that you’ve a wealth of installment plans behind, pegged to your local credit card issuer. Now, you’re stuck with those plans and have to seek new financing lines.
  3. Incorrect line of credit used: The problem is that consumers don’t exactly know which credit cards to be pegged and which are purely for consumption purposes – getting the wrong credit cards billed and finally being rejected for invalid billings.
  4. Low or bad credit score: When a credit rating agency downgrades your credit report, it’s time for a change in credit score. This is when you credit score drops that banks & credit card companies run for cover.
  5. Loss of employment or income: Similar to a bad credit score, a loss of income earning capability does affect your credit card limits. An annual credit card review or check is performed to ensure that clients do have sufficient capital or income earned to continue enjoy such facilities.

The ultimate aim for a credit card agency is to generate revenue while you’re enjoying the benefits. Hence, for a legal card issuer, financial regulations and compliance had to be observed closely. A company will not hesitate to terminate or downgrade your credit card limits if there’s any drastic changes made to impact your overall fico score.


Worried about a local credit check, it’s prudent to practice checking your financial status, credit rating, credit score, credit report, and engaging a credit repair company. The lack of coverage limits might get you stuck with an unpaid object or even sued by the company selling you the products and services. Do not get ensnared into such a trap!


5. A guaranteed credit card does not work.

For a reputable credit card company to verify your details, it does not mean that you are going to get a guaranteed credit card. Moreover, local banks do not provide bankruptcy credit cards if you did not meet the requirements. It’s imperative to remain calm considering that you do not fall under the almost “blacklist” record.


Let’s take a look on various ways to avoid falling into a debt trap:

  1. Guaranteed credit card approval: Do not agree to anyone who promises you a 100% approval rate. This is impossible as the banking compliance team has to assess your local credit score records before doing the needful.
  2. Bankruptcy credit card approval: If you’re an ex bankrupt, chances are this card might tempt you to apply. Go for it if you really have the spending power.
  3. Credit card without annual fee: A good option for people who don’t like an annual fee waiver request but it’s not 100% guaranteed waiver, be mindful.
  4. Credit repair cards: There’s no such thing as a credit repair company offering cards or any sort of financial products. It’s against the law!
  5. Guaranteed cash advance line: Avoid jumping the queue and apply online using your credit cards. The cash advances or bank overdrafts don’t work out this way!

If you’re seeing these lucrative financing options available, likely it’s the causes of personal identities being stolen. Avoidance of risk is advocated as one wrong move might get you into legal problems while receiving false advices from the corresponding fake credit card issuers.


Don’t be afraid to report any guaranteed credit card agencies to local credit bureaus. In the case of a verified company, the issue will be resolved but not for those who were operating illegally. You’re the main target of identity thefts or credit card frauds.


Good to know about cons of credit cards in year 2018

Before ending your endeavor in searching for the best credit cards, do observe the following pro tips in ensuring your safety:

  • Verify your source of credit cards – do not be a slave to debt repayments
  • Never signup online with another credit card – a new card application should not require additional cards to supplement info.
  • Check with credit bureaus – avoid unnecessary risks by calling up a credit bureau.
  • Forgo too-good-to-be-true deals – never attempt to handle a fraudulent case alone.
  • Invest some time in credit card comparisons – there’re tons of credit card reviews websites & credit card comparisons deal, why risk for less?

The best credit card is always changing. You’re to apply for new cards inline with your expectations while keeping old credit cards for payment history proofs. A win-win orientation is the most ideal way of keeping you in good financial conditions as well as getting an excellent credit rating from any credit card reviewers!


Quote of the Day: “Credit your card today – KIG Hall [2013-2018]”


Relevant Topics

» Do’s & don’ts of credit report: List everything out at once!

» Pros & cons of credit repair: Final destination for a credit fix!

» Do’s & don’ts of credit cards: Avoid credit card debts like cash advances here!

» Do’s & don’ts of credit score: Never destroy your financial credence!

» What you need to know about credit repair: All you ever needed!


This article was originally published on February 18, 2014. It has since been updated. 

What You Need To Know About Credit Card

It’s fatal to leverage of borrowed money with a bad credit considering the number of credit card companies that use your credit to determine potential business deal and to set your rate of interest. Borrowers with a troubled credit history often received rejections or disapproved credit card applications after signing up for the latest promotional cards. Applying for a credit card seems to be the best option for incentives, but generally the least approved option. As you navigate credit card deals and evaluate the best option for personal consumption, observe the following crucial factors in signing up for a new credit card.


A bad credit discourages most credit card issuers considering the fact of highly geared corporations that borrowed money from investors and issued loans out to you. Retail debtors with a bad credit history often adopt new lines of credit, pegged personal loans to the applied credit cards, and default of borrowing after a few timely payments. Alternatively, upon getting disapproved for a new credit card, you may opt to visit a credit union for financial assistance or simply do credit repair by evaluating the best cleanup choice, here are the most critical factors before signing up for a new debit or credit card.


1. You can apply for a credit card.

Even if you’re a fresh graduate or starting off with a zero or 0 credit score, under normal circumstances, you do have a logical assumption that a credit card company immediately disapprove your credit card signup, the reality is that anyone can apply for a new credit card without the need of an existing personal credit score. As for how the credit card company works, a quick search online displays a plethora of prominent card issuers, all you need to do is to click on the sign-up button and fill in the necessary details of your interested credit card company.


For instance, chancing upon consumer’s favorite hsbc or citibank credit card, you may proceed to search for the best cash back credit cards, high quality deals like miles, grocery spending at certain outlet, an additional secured card, rewards, or simply without an annual fee (avoiding waiver). Don’t forget about selecting either of the options: mastercard, visa card, or other globally accepted payment functions (JCB, Diners, Mastro, American Express).


Apply-for-me: In the process of signing up a new credit card, you’ll avoid the hassle of holding cash & cash equivalents, fear of getting robbed by foreigners during travel seasons, exercise financial prudence within the issued credit limits, automatically enrolled into an analytical card application, or lack the cashback option for a bulk purchase. Similarly, a lot of merchants created funky ideas to entice you such as prepaid and paypal credit card.


2. Credit card bases on your personal income level, not about credit score.

During the application process with a financial institution, being in a physical location or an online credit card applicant, mastercard debit card or others, you’re directly involved in the entire process. A mistake at your end or the backend office may delay the approval timing, worst case getting rejected for the wrong reasons – appealing to the banking compliance & chargeback department takes a great deal of time. These factors are what ultimately decide whether you are eligible for a platinum card, a black credit card, a gold card, or any promotional offer.


A credit card check is the first step of work for the issuer to determine whether you have the financial capacity to repay them quickly. It’s reasonable to call your nearest credit card company for 0 balance transfer or use the internet to find for a credit card comparison website, identifying which credit card to apply for – discover, chase, hsbc, citi, bank of america, wells fargo, american express to name a few.


Income-level: If you’re working in a professional role, be it in the finance industry or retail line, chances of getting approved for a credit cc application is high. Maverns [2013] demonstrated in a statistical table titled “credit card usa” that most consumers with an operating income of 2 years or 24 months do get approved by banks while “credit cards uk” statistics depicted lower approval rates. Nevertheless, a credit card help center is always available to answer your enquiries 24/7 daily.


3. Your approval rate depends on your credit standing.

There’s no denial on the part of good or bad credit rating. Financial institutions like banks often measure your financial conditions using an indicative credit score, payment history in the past, a credit card checker, or requesting assistance from banks that issued to you their top credit cards. While it is true that a new borrower (with little to no credit history) experiences setbacks in applying for different types of credit cards, it is not false that local creditors do have a certain faith in them as opposed to delinquent current accounts.


A poor credit report scorecard produces a bad impression to your creditors. As your financial reputation advances, performing a credit card transaction for a few months, you should avoid unsecured loans (cash advances or bank overdrafts) and continuously compare credit cards.

Here are some proven examples of local banks & agencies helping in an applicant’s submission:

  • Bankruptcy credit cards – an individual undergoing bankruptcy filing can apply for a bankruptcy credit card for a temporary debt relief.
  • Instant approval credit cards – gone are the days of waiting for card mailing services to deliver to your doorstep, under an hour, Citibank promises delivery of instant cards.
  • ATM or online credit card submission: a global banking coverage enables consumers to apply for credit card offers at a click of a mouse & getting phoned in a couple of minutes for credit card verification.
  • Free credit card: ever wonder why you needed to pay for an expensive annual fee but facing difficulties in getting waivers approved?
  • Guaranteed credit card approval: sensitive topic that your friendly agent will assist you.

Procedure: So long as you fulfilled the creditor’s minimum requirement, such as personal income level and duration of employment, you can proceed to apply for a cc. When you’re in comparison of the best interest rates, do not sign up for a virtual credit card. Why? There’s a chance of falling into a case of identity theft. You’ll be exposed to professional fraudsters or getting your negative information out to the public for a fee.


Once you realized that you’re caught in a fake credit card benefit, immediately contact your nearest credit bureau or lodged a police report. Certainly, believing that there is a credit card finder online is proven to be a myth. Cancel any applied services on the internet due to inadequate credit card insurance.



4. Best credit cards are only available to good credit scorers.

What is your personal credit score? If your score falls between the range of 600 to 750, chances of getting approved is almost guaranteed while attaining the best credit cards. It’s imperative to place your interest in reputable credit card companies like discover, chase, citi, hsbc, morgan stanley or American express while looking out for merchants like shell, disney, master, visa, paypal, gas or any store credit card.


Emphasis on 0 APR. Since local financial institutions went through many fraud problems, it’s recommended for you to understand the common procedures deployed by these agencies:

  1. Fair rating: credit cards for fair credit
  2. Poor rating: credit cards for poor credit
  3. Negative rating: credit cards with bad credit

The above procedures are specifically for credit card info. Do not attempt to apply for credit card with bad credit! Chances of rejection is high. Perform a personal credit repair cleanup on your credit report before re-applying for your interested cards – a cardholder has to prove his trust in creditworthiness.


Comparison: The difference between the best vs. lowest credit cards is too wide. Zero interests are usually offered if you’ve an excellent credit score. Check out mobile visa card app for your financial status – open a dispute case if you found any discrepancy or error.


5. Doing nothing is a card strategy.

Many consumers misunderstood the need for being patient. Since there is no guaranteed credit card approval, how do you apply for a credit card online? Answer is simple, doing nothing at all. For balance transfer credit cards, it’s necessary to be prudent in the entire cr process, the wait for approval cannot be forever. Chances are, the corresponding bank shall reach out to you within the slated deadlines.


How to get a credit card? There’s no law for credit card companies to not offer their comprehensive suite of banking products to you. In fact, after a credit card verification process, you might be eligible for instant approval for credit cards (within a day or two). Do note that anyone can apply for an unsecured credit card but only those that fulfill “Emphasis on 0apr” as the requirement above.


Patience is a virtue. Of the same statute with a credit card company, the officer can do nothing as well and just keep pending the application process. The daily quota might just pull your application through (grey area though). It’s because the bank’s cc card department has to obey the laws stated by a credit bureau in lowering the rate of debts being sloshed out freely.


6. Do not apply for one credit card account.

If you’re about to do some credit card reviews, remember to set up multiple current accounts, apply for mastercard, apply for visa card, discover credit card, chase credit card, or other relevant crediting functions. Do not apply for one credit card account!


One myth is on creating many cr accounts. If you intended to open just an account, to mitigate risk of credit check, your creditor might misunderstand that you have several other “bad” current & savings accounts with them or competitors. Otherwise, you’re intending to do a credit card fraud!


Legal actions such as blacklisting of your personal information, increasing your interest rate, freezing of individual account, or calling up the legal department, shall be implemented against you. Yes, creditors do have the right in reviewing your current credit card accounts until they’ve a satisfied answer, not to forget undergoing painstaking measures for debt clearance with a professional credit bureau.


Do not believe the general sentiment of having various current accounts including a balance transfer. It’s wise to set up multiple accounts to serve your needs; grocery purchase, auto loan payment, service mortgage housing, utility & gas bill, and personal consumption. These accounts help in segregating expenses while month-end budgeting helps in 0 apr credit cards.


7. Are credit card companies trusting?

To learn the hard truth about credit card companies, these agencies done an excellent “job” in marketing out financial products to vulnerable customers who don’t have a clue on the mechanisms of the functions; rewards credit cards, visa platinum credit card, credit card fees, business credit cards, or even calculation – risking borrower’s credit score report here!


Rudimentary knowledge of is dangerous. You’ll not have relevant experiences in dealing with an online credit card and not knowing what to look out for during online credit card reviews. The onus lies on the hands of your credit card company, beautifying cash back cards while misleading you to the wrong definition of what is a credit card.


Avoid lofty sales pitches, observe the following guidelines in maintaining a cool composure:

  1. Reputation of credit card company – 1st step is to learn about the card issuer, unknown brand names must be avoided at all cost.
  2. Citing of local governments – next up, forget about those who mentioned closely-knitted relationships with local credit bureaus.
  3. Promise anything – whoever who promises ought to be reported.
  4. Attempted cheating – shady card companies do exist, they often preached instant credit card approvals!
  5. Brutal marketing efforts – credit card officers don’t have the right to help you apply for ten credit cards when you requested for one card only.

Above mentioned guidelines have to be taken into consideration. It’s not necessary to observe all of them but nice to receive quality financial education. On a last note, avoid third-party merchant apps or prepaid credit cards if you are unsure of their reputation. Prestigious credit cards like paypal or forex can be considered due to strong financial standing – but be wary of the annual fee payment.


8. Credit card is not a one-off transaction.

There’s no difference in ownership, owner of a house, landlord of a real estate, owner of an auto, owner of personal asset, or being a cardholder. Ownership, holding legal control & rights over an item, comes with responsibility, thereby requiring certain sacrifices to be made financially. A good credit history does reduce your cost of ownership, debt restructuring plan, credit card protection, or better financing deals from local lenders.


Do not assume that every creditor treats you equal. One point you’ve to be sure is on the credit card benefits, not using the proper treatments might lead to understating credit utility ratio – a big mistake in your debt consumption. It’s time to reactivate your financial muscles by going shopping for the right credit card fit. Recognized the need for having a credit card, investing time & efforts in determining the risk-reward apr benefit, and finally contacting the bank or local credit card company for advice.


An organic method of hunting suitable cards is by calling up friends. In the working world, most consumers possessed at least 2 credit cards in their wallet, maintaining a lean cash structure. As time goes on, you’ve some ideas on what cards to apply for in order to maximize your credit utility. Time taken to accumulate knowledge, exercise prudence concept, and patience in approval timing, is going to be a long ride.


9. Never overleverage on a credit account.

Borrowed money is not the same as personal cash. When a bank imposed credit card charges, you might find it overwhelming to repay the interests, what more principle repayments. In a security card, charge card or debit card, there is an asset like security deposit or collateral pledged as a guaranteed protection. For unsecured credit cards, the bank incurs the risk of lending out in exchange for higher interest rates, leading to higher profit margins – that’s the rationale behind credit cards!


If you don’t have the financial credence, no bank or creditor will be willing to loan out sloshing money in their credit accounts. Certainly, there’s a way in improving your credit score to boost financial credibility but not for long regressing back to the mean. It means that your creditworthiness has yet to secure a bank’s trust in lending you borrowed cash reserves.


One missed payment for your credit card debt shall destroy a lifetime of reputation. Your bad habits in missing or late payments don’t help in stimulating incentives from creative marketing agencies. Never go beyond the credit limit coverage as well as missing out payment deadlines due to insufficient salary or living beyond your means.

Good to know tips & tricks for credit cards in 2018

No one has a “perfect” credit card. Obviously, you’ve to prove your financial competence before credit card companies entrusted their cash reserves to you for a fee. Employing strategic debt repayments is what the agencies wanted to learn from you albeit not a mandatory criterion. Here are some of the needful tips in being a good cardholder:

  • Choose the right credit card
  • Terminate unused credit account
  • Furnish proper credit card info
  • Check out credit card rates
  • Communicate with credit bureau
  • Beware of an international credit card
  • Start out with first credit card
  • Download a credit card app
  • Apply for 0 balance transfer
  • Never draw cash from credit card
  • Don’t do a credit card transfer (unless balance-transfer)
  • Consolidate unpaid debts into 1 account (lower interests)

All in all, many of you don’t have the ample time to invest in searching for good credit card deals. You can either call up your friend, a relative, or someone who used a credit card. It’s imperative to observe the above mentioned topics in promptly managing unpaid debts, consolidation of credit card loans, and terminating of existing unused unsecured lines. The path to being debt free is predictable after adopting these good practices in life.


Quote of the Day: “Financial prosperity begins with investable liabilities – KIG Hall [2013-2018]”


Relevant Topics

» Do’s & don’ts of credit report: List everything out at once!

» Do’s & don’ts of credit repair: Final destination for a credit fix!

» Do’s & don’ts of credit cards: Avoid credit card debts like cash advances here!

» Do’s & don’ts of credit score: Never destroy your financial credence!

» Do’s & don’ts of personal finance: Forget about shopping today!

» What you need to know about credit repair: What do you know?


This article was originally published on February 13, 2014. It has since been updated.  

Dos & Dons of Credit Cards

Credit cards, branded as a prerogative status, are issued by local credit card companies and governed by credit bureaus. Like any mode of financing, cardholders inherited the privilege of utilizing unsecured debts from the issuers. Such form of borrowing has been available to almost any consumer who provided evidence of business profits or employment incomes.


Applying for credit cards is a double-edged mechanism, two facades which make or break your financial destiny. If you’re in search of signing up for the best credit cards in year 2018, and assurance from reputable card companies, consider the following factors before taking any action. Financial prudence and wisdom may be of great assistance near future.


What are the dos of credit card?

Signing up for a new credit card, as a corporate or individual, takes approximately 10-15 minutes. A personal banker assigned by a financial institution shall contact you for relevant documents such as proof of address and operating income from a job. Upon furnishing the required details for compliance purposes, the credit card officer reviews all information and ensures accuracy in submitted documents – calling you for additional evidence(s) whenever needed. The entire workflow is about 2-3 hours during business days and up to two day for detailed checks.


After verifying your identity and payment history, the credit card company proceeds to issue approved cards and you’re the new owner to them. Get ready to receive a cake and have a share in doing credit repair (the fun way of course). An obligation is to observe the five dos of credit cards namely; 1. Rebuild credit, 2. 0% interest-free installment, 3. Shopping & travel rewards, 4. Balance transfer scheme, and 5. Investment program:


1. Rebuild credit: Do you know that credit cards can help in repairing bad credit? If you’re have a bad credit score of 300, average credit score of 609, or any scores within the range, having an approved credit card helps in fixing payment history. If you’re looking to rebuild credit the right way, financing small purchases such as grocery, utility bills, or insurance premiums, could improve credibility in the eyes of creditors such as banks or credit unions.


Management of credit cards is an uphill task. You’ve to pay close attention during credit fixes, missed payment, loss of data, overspending on costly goods, or even purchasing foreign unlicensed products – your card issuer is closely monitoring on your credit report and consumption behavior. One wrong move may dent your entire individual ratings and subjected to blocking of any unused unsecured debt. Adhere to the strict financial regulations when trying to do personal credit repair.

Cardholder: You can sign up for capital one credit card or discover credit card to rebuild credit. Such prestigious card companies received brand recognition from local government bureaus as well as other creditors trusting your scorecard easily – boosting your reputation across financial institutions and lenders.


2. 0% interest-free installment: How about getting an attractive financing rate of zero percent? If you’ve an average credit score of 500-650, credit card companies do offer 0% interest free installment deals pegged to your credit cards. As a lucrative option, financing big-ticket purchases such as quality furnishing, current insurance policy, new auto, or fresh college loan, should render financial assistance in saving some money in the short haul. Over time, the savings from bank’s interest may be put to good use, and avoiding potential perils of the nominal inflation rate.


Management of 0% interest-free installment is a chore. You’ve to be meticulous in dealing with credit repair, late payment, breach of contract, overleveraged on non-essentials, or continuous loading of new financing deals – bank loan department frequently liaised with creditors to perform credit checks and determine potential risk of delinquency. One invalid payment may jeopardize the entire financial status in the eyes of creditors and subjected to removal of any incentive scheme. Adhere to the terms and conditions of the contractual agreement at all times.

Cardholder: You can peg any of your hsbc credit card or american express credit card to finance 0% interest free installment as a mode of payment. Such reputable card companies do provide certain forms of guaranteed credit protection, in case of merchant fraud or sudden business closure – a financial intermediary beneficial to both vendors and consumers.



3. Shopping & travel: Where can you find a business paying you for entertainment? If you’re a shopaholic or in the lines of spending borrowed money, credit card companies do incentivize shopping and travel deals in accordance to customer tiers. As an enticing consumer benefit marketing campaign, financing retail consumption such as grocery, dining, entertainment, golf, beauty, fitness, or travel, might advance your financial education in cost of personal budgeting. Thereafter, planning for monthly spending shall lead you to be disciplined in developing good money management skills.


Management of shopping and travel is not indulgence. You’ll need to be fully conscientious in swiping your credit card for the right purpose, citi premier miles for travel, gold visa credit card for entertainment, uob lady’s card for retail shopping, or wells fargo credit card for general consumption – consumer credit division closely tracking your spending pattern and figuring out new marketing ways to increase consumption. An innovative cashback scheme can easily reduce your healthy gearing ratio, thereby creating unnecessary economic frictions. Adhere closely to your budgeted purchases and install a routine application to keep track of individual spending habit.

Cardholder: You’ve to make tough financial decisions in signing up for loyalty points or cash rebates – deciding the appropriate retail credit cards or personal travel mileage cards. Many creative financial institutions occasionally set-up promotional roadshows, enticing diners to dine in shopping malls, business travelers to use bank’s line of credit, offset bills, or other incentive methods – tied-up partnerships with multiple vendors and bolstering economic productivity for everyone.


4. Balance-transfer: Are you confused in tracking thick wads of monthly billing receipts? If you’re overwhelmed by the sheer volume of receipts or frustrated by the loss of bills, credit card companies do set up balance transfer programs to consumers who have multiple credit lines. As a financial mobility planner, financing balance transfer such as 0% interest free installment, credit card debt consolidation, interest offset scheme, or balance transfer program, could properly segregate your financial plan for optimal placement of expense. Accordingly, transferring of balance between current and saving account helps in improving financial reflex in cash appropriation.


Management of balance transfer is not one-stop process. You’ve to remain active in handling ongoing transactions within the balance-transfer program, consolidating credit card debt, utility bill transfer, monthly insurance premium payment, other card expenditure, or existing balance transfer scheme – credit card office to update daily transacted volumes and identify new processes to enhance reliability of financial traction. Adhere to the stipulated balance-transfer agreement and log-in daily to actively manage incoming transactions.

Cardholder: You’ll be in-charge of sourcing for new balance transfer schemes available or removing high interest credit cards – proactive attitude in settlement of outstanding amounts within the stipulated deadlines. Many relationship managers introduce new transfer of balances, financing at attractive interest rate, free consolidation of loan, or at a small cost – generating new ideas to educate you in managing debt payment and benefiting the global financial system.


5. Convenience: Where do you store heaps of cash in your lean purse? If you’re facing an abnormal situation hoarding cash or cash equivalents, credit card companies deliver an excellent service in manufacturing “plastics”. As a trusted storage for money surplus, financing credit cards such as visa card, mastercard, amex, or licensed card issuer, provided a mode of convenience for handling cash transaction seamlessly. Soon, crediting of balance between buyer and seller lowers the cost of carrying in money management.


Management of convenience is not easy though. You’ll practice to safely store your new credit card in wallet compartment among other sections, gold visa credit card, hsbc premier, citi miles card, american express, or capital one credit card – banking compliance division frequently contacted merchants to detect suspected frauds or unpaid transactions. Adhere to keeping credit cards safely stored and set-up message alerts for outgoing payments.

Cardholder: You’ve to be a responsible cardholder in exchange for pursue of convenience or favorable transacting volume – adopting precautionary measures in maintaining safety of credit cards and guarding against identity theft cases. Local credit card companies have 2-FA authentication modes plus relevant credit shield protection as safety mechanisms – creating multiple layers of security, enabling you to swipe freely without security concerns on information leakage or breach of privacy.


What are the don’ts of credit card?

Applying for a new credit card, usually for retail spending purpose, takes up a short period of time. An officer arranged by a credit card company will liaise with you on the necessary information such as internal banking policy, financial regulation, credit bureau check, and other key obligations. Once you’ve been brief on the required set of rules, the local banking department finalized detailed checks and submitted to investigation division. The entire handover takes approximately 1 working day and up to a week for pending card compliance.


Undergoing a hassle in ensuring accuracy and fraud detection, the credit card department issues the final approved cards and you’ve to take full accountability of any discrepancy. Prepare to face the music and receive harsh penalty treatment if improper handling of card ownership is found (not exactly fun). Below is a list of the five dons of credit cards mainly; 1. Poor financial discipline, 2. Repay another credit card, 3. Sign up for unnecessary cards, 4. Reveal personal information, and 5. Cash advances:


1. Poor financial discipline: Do you know that credit card companies do track customer’s consumption behavior? Indulgence in impulsive spending is not encouraged. If you’re a vivid shopaholic in purchasing goods on credit, new furniture on installment, mobile line plan, or simply swiping on-the-go, chances are red flags have been raised in the eyes of creditors. Banks engaged data analytics companies to trace consumer spending behaviors as well as determining the risk of delinquency – high volume transactions yield higher probability of credit card default.


Management of poor financial discipline is tough. You’ve to get rid of irrational exuberance in excessive commitment in retailing, increase financial planning, streamline shopping tendency, or setting up highly focused spending indicator – credit card office is tracking the type of individual expense while investing in risk perimeter to locate high-risk customers. Practicing financial prudence in limiting consumption budget does signal positive credit score ideas over to unsecured lenders.

Controller: You’ll make an impactful decision not to unnecessarily overspend on goods or engage in high-risk inventory – implementing financial trackers in handling overall credit consumption and deliberately missing out on new financing deals. Personal banking applications provide a free money outflow tool (usually in the form of a banking app) for you to keep a lookout – raising “eyebrows” upon clear detection of over-the-coverage limit, thereby forcing your entire cash flow to be congested temporarily.


2. Repay another credit card: When are you going to be debt free? If you’ll to continue financing debts using debts, paying another credit card bill using another card, or transferring balance to another balance-transfer account, credit ensnarement is going to last a lifetime. As a convenient way of settling unpaid debts, it is only a matter of time when your personal coverage limit burst and interest on loan surpassing the principle repayment – yes, there are many ongoing legal suits filed by creditors and borrowers undergoing bankruptcy attempts.


Management of credit card repayment is a must to do. You’ve an opportunity to secure properly or seek financial advice from professional credit repair companies – setting up multiple savings and current accounts with local credit unions or savings & loans association. Financial institutions had designed special interest-yielding accounts to offset existing cost of borrowing as well as freezing interest rates after negotiating for an extended deadline. Practicing frequent communications with lenders enforce you to remain financially discipline in managing on-time credit card payment.

Controller: You’ll impose strict cash repayment on outstanding amount or paying off unpaid bill using another credit card – demonstrating the independence of not needing a credit card to repay another. An officer will be in-charge of calling you for clarification if your card has been used as a repayment scheme to that of a similar line of credit.


3. Sign up for an unnecessary credit card: How many cards can you use at once? Multiple cards, both debit and credit functions, do not necessarily equate to rebuilding of credit. Financial institution like bank, credit card company, shopping mall tie-up loyalty card, or other offshore credit card service, knew the risk of hoarding a full spectrum of cards. As a cardholder, no one will entrust the entire suite of credit line to you, only condition is to be a high-flyer in business development or simply from a wealthy background.

Management of unnecessary credit card is emotional. The fact that reward point, loyalty to branding, promotional event, or pooled rebate can easily be wasted especially after accumulating for a 12-month period. Think of the repercussion of using too many credit cards while losing out potential value to maximize one perfect card for optimal rewards. Another way is to imagine maxing out credit utility ratio (>30% of total limits) and finding your credit score lowered down – unable to apply for a mortgage or auto.

Cardholder: You’ll be terminating unused credit card or line of credit. Therefore, fixate a benefit plan for utilizing relevant credit cards, but cancelling others to deter unnecessary consumption. One good way is to seat down with your personal banker: he/she has the knowledge to reveal the pro and con of credit card while finding the best debit cards to offset loss of card or line.

**Warning: You’re ultimately responsible for choosing the best credit card or charge card. No one knows your personal spending pattern more than you do. The right way is no other way – using cash to pay for small items, balance-transfer for debt consolidation, or ready credit (overdraft facilities for emergency).


4. Sharing of credit card details: “Sharing is not caring”, an old adage to be observed by global cardholders. You’re being irresponsible for revealing any credit card information, sharing of credit cards with a friend or relative, divulging personal information, allowing anyone to view your credit profile, or helping a pal to pay for a good. Most consumers, in the U.S. and U.K., reported identity theft to the police. It’s not hard to detect either of the aforementioned loss of credit card reasons. Card dealing is a common practice in the underground black market, caveat emptor!


Management of credit card information is dire. You’ve to be caution on a (non-exhaustive) list included: a. signing up for too-good-to-be true deal, applying for an offshore banking account, a credit repair franchise, business corporate card purchase, any business without a physical location, or customer support officer random phone call. It’s important to always meet-up with the respective correspondence who inquired on such credit-related information – one of the best identity theft protection in credit repair.

Safeguard: Applying for credit card insurance is a good option. Why not prevent identity theft from happening in the first place. Closely observe the above list or seek credit card company’s protection policy in an attempt to replicate those who undergone credit card frauds in the past – execute preventive measurements immediately.


5. Using cash advance service: Cash advance, a subset of bank overdraft, is a credit function to draw cash in advance. Interest rate is calculated on a daily basis, bearing in mind of debt compounded interests. Cash advance comes in the form of ready credit, cash line, bank overdraft, alternative for ineligible payday loan, credit card limit, balance-transfer top-up or other attractive line of credit – credit compliance department monitoring your spending behavior and reporting to credit bureaus.

Management of cash advances has to come with sacrifices. Opportunity cost has to be measured before utilizing such services. It’s been reportedly warned for general consumers suing credit card company’s policy when interests on cash advance go beyond that of initial borrowing sum (principle amount) while bank’s lawyer countersue on failure to read daily interest rate calculation on cash advance facilities. There is no end for either party so the best way is to mitigate credit card risk or even avoidance of a credit card.


Overdraft: You’re liable for the actions taken in withdrawing cash on credit. Pertinent information like daily interest rate, the ability to repay debt, unpaid bill, missed payment, or any “hidden” clause has to be understood before applying for cash advance overdraft. One bad payment or default on borrowing can cause legal implication(s) such as lawyer’s letter from bank or claim on personal asset – think twice.


Alternatives of credit card

Finding difficulties in digesting the law of credit card? Alternatives of credit consumption are always available in the form of money, cash, debit card, Paypal, Bitcoin, foreign currency, or even third-party peer-to-peer financing.


Recently, the growth of mobile payment gateway has served the need for a cashless society. If you’re on-board a financial trend, using of such payment application(s) help to reduce financial dilemma, getting perk and incentive in using the app, cash rebate directly from merchant, or learn about new competitor’s product offering – matching your personal spending needs in a high quality fashion.


Learn more about the do’s and don’ts of credit repair to better align your interest with the required consumer spending pattern – avoiding debt pitfalls ensnared by local creditor or fraudster that predecessors went through (bankruptcy filing or financial nightmare at home).


Quote of the Day: “No one manages your personal money more well than you do – KIG Hall [2013-2018]”


Relevant Topics

» What is a Credit Report: Learn more about using a report card to your advantage!

» What is Credit Repair: Find out various means to fix current sorrows!

» What is a Credit Card: Accumulate latest incentives and interest rates here!

» What is Credit Score: Boost your current credit scores!

» What is Personal Finance: Receive high-quality education to financial prosperity today!


This article was originally published on February 06, 2014. It has since been updated.


What Is a Credit Card?

Credit card, as the name implies, is an enabler for you to make purchases using borrowed money, from simple meals like a sandwich to sophisticated exotic trips like Russia [FIFA World Cup, 2018]. So long as the borrower (you or any cardholder) return the utilized money within the “grace period” of approximately one month or 28 days on average. Should you not pay back within the stipulated time frame, you’ll incur an additional interest expense – typically a fraction of used monies being owed to lenders – on top of the credit utility ratio.


In this article



Pros & cons of credit cards




Credit card companies offer 0% interest-free installment plans, consumer bundle package of up to 36-month repayment period for big-ticket purchases.

 A longer repayment period might affect debt utilization ratio or 609 credit score.

Possession of credit cards enhances consumption mobility (obviously safer) than hoarding thick wads of money, coupled with major brands being accepted globally than individual checks.


At times, your credit cards had reached the maximum allocated limits without you even knowing!


For most of you starting out as fresh graduates, building credit histories begin from cards, thereby forging trust with financial institutions in the long haul.


“It takes 10 years to build a reputation, but only 10 minutes late to destroy it”, said Warren Buffett.


Incentives of using several credit cards are actually helpful, essentially providing quality usage such as cash-backs and loyalty reward points – exchanging for offsets or discount vouchers.


Sky-high interest rate payments had actually gone beyond that of principle payments, said BBC News.

Credit card administration

Getting showered with a multitude of credit cards by the nearest banking branch? Before hopping on the popular card-wagon, question yourself again, “Am I able to afford interest payments on my debts”?


If you possessed the ability to pay up any outstanding balance on time every month, there won’t be interest penalty as charged (and vice versa). Going back to the last point of Pros & Cons of credit cards [KIG Hall, 2018], you can leverage on the incentive schemes to earn reward points. As a cardholder to multiple cards, EZ Credit Repair [2009] revealed that you’re exposed to various benefits such as loyalty points, cash rebates or airline mileages.


Inversely, most reward cards yield higher interests – till the extent of removing hard-earned benefits – which is a double-edged sword. Monthly balance brought forward (or carried over debts) is subjected to interest payments. Picking a low interest-rate credit card is definitely a viable option for fresh starters, no?


A typical credit card is issued by major banking corporations such as, but not limited to; Bank of America, JP Morgan Chase or Wells Fargo. The local financial institution has a list of determinants in building your reward ratio, fixed-income interest and payable fees. You’re strongly encouraged to apply for the right card at the right banks, at the right time of course. Normal transactions are processed by partnered vendor networks; Mastercard, VISA or AMEX, offering lucrative perks like fraud detection and car rental insurance [Money Sense, 2016].


Generally, the higher quality of one’s personal credit score, the higher the eligibility of card entitlements being secured. Individuals who have excellent credit ratings are often favored upon domestic banking corporations – structured rewards system, deferred payment schemes and lowest interest expense ratios.


Interest fee payable for consideration

In a broad overview, credit card companies generate revenue via 3-variable model:

      • Transacting fees as charged during merchandising for every approved credit card transaction
      • Interest payable for each failed attempts in debt recovery
      • Ancillary fees expense as stated in your application forms

The first fee payment structure has nothing linked to consumers. Cardholders are spared from any transaction fee incurred as (participating) merchants are liable to compensate for service delivery process.


One common misconception is on the number game – more loyalty points don’t equate to priority customer service. Most people assumed that a rewards credit card can overcome interest payments in the short tenure. This is not falsified information but generally hyped up by heavily-funded marketing campaigns, argued [Debtor’s Guide, 2013]. It merely takes one-single missed payment (beyond “grace period” of 30 days) to completely wiped out your reward points – steer clear of rewards cards in that case.


Pertaining to ancillary fees, credit cards contained numerous fee structures; annual (yearly) fees, late payment charges, bank overdrafts and others. Citigroup [2010] mentioned that cardholders may find a transparent list of implied charges in any application form. Consumers on borrowed terms ought to repay in a timely fashion else risk being penalized by an interest fee and a late payment – not to forget suffering from an unwanted damaged credit score!

Understanding line of credit

Schumer box, evidently seen on marketing collateral [Mishkins, 2013], encloses a diagram informing credit card applicants on key information. You’re fully responsible for your actions especially signing on the dotted lines. Below is a digestive summary on reading the Schumer box (without complicated terms):


APR purchase agreement

An interest rate is payable on total balance brought forward amount, likely any outstanding dues you did not pay off from the previous month. Kindly note that interests is being charged on a daily basis, the summation of overall balance as well as debt rollovers (differs from snowballing method) – an APR rate of 15% attracts approximately 0.0027% daily rate as opposed to fixated 15 percent interest rate expense, argued subject matter experts from Credit Repair EX [2014].


If you’re using a balance transfer promotion, credit card companies offering zero-percent interest period of six months to twelve months, it is an opportunity to consolidate the bills while servicing only the principle sum. Again, procuring of bulk items and asset classes can be of a good deal – securing interest free incentive as well as building up of borrowing histories [AAA Credit Repair Guide, 2010].

      • APR Variable section: If you realized that your interest is being pegged to a prime rate (or base rate for that matter), a “variable” APR is applied and governed by the Feds (Federal Reserve) – normalizing interest rates to inflation, daily rate sensitive to every basis point announced by Feds.

» Relevance: Calculate your interest rate here!


APR transfer agreements

Bulge bracket banks do allow cardholders to shift credit card debts to a series of approved cards. Sim & Maksimovic [2015] agreed upon using debt consolidation strategies for about 6-12 month period. It is unlikely for further extensions and subjected to discretion of regular procurement process – not all cards are friendly!


APR cash advance agreements

Looking to withdraw via line of credit, also known as cash advance utility, you may use your personal card in convenient ATM machines or queuing up for a bank teller service. Mishkins [2013] warned against such actions due to the interest being levied upon any borrowed amount, on a daily basis too. You’ve to honor the request of bank overdrafts and repay hefty interests to unsecured financing banks.


APR penalty agreements

The penalty of missing a payment is not as simple as forking additional six-month higher interests. You may be further liable to local laws or even received a 25 basis points plunged in individual credit score.


How yo avoid interest being charged Upon”

Apart from the dos, here are the dons of statements from credit card companies. Take advantage of any “grace period” being mentioned in the contractual agreement.


Pay off minimum payment

Card issuers do not run free lending campaigns, but protected by sophisticated legal laws. You’re due for interest rate charges (sometimes unfathomable rates) as long as there is a late charge. A local credit card company often widens the interest spread to the maximum based on the prevailing market rate – having been authorized to do so.


Annual fee expense

Annual fee, self-explanatory nature, is a type of expense incurred directly by you. It is a form of “service fee” for utilizing applied cards. Fret not, most credit card firms offer indefinite fee waivers unless the applicant has average to bad credit rating. Do not belittle the yearly cost of card ownership!


Foreign & local transacting fees

      • Transfer fee structure: Shifting of credit card debt attracts a fee, you’ll be charged per transaction. Listed fees are usually 3-5% of total shifted sum unless otherwise stated.
      • Cash Advance fee structure: Drawing on borrowed money do attract daily interest, based on prime rate from the Feds.
      • Foreign transaction fee request structure: Any expenses abroad attracts network utility purchase fees. Traveler credit cards are typically waived off due to targeted market audience (i.e. Capital One & Discover), VISA or Mastercard services charged 3% on average per transaction.

» Relevance: Check out hot trending credit cards without transaction fees!


Frequently seen penalty fees

      • Late payment fee: Paying the bare minimum is aggravating. But missing a payment is devastating. Once the grace period is over, a decline in credit score is disastrous – nothing beats that.
      • Temporary credit limit increase: Possessing a good credit nature, companies do offer attractive extensions on borrowing lines. The coverage depends on your relational contracts but of rare occurrence these days.
      • Return or Bounce payment fee: A bounced check or failed credit card bill entices a return payment; you have to compensate for extra legwork by the claim handling officer.


Rewards program eligibility

Similar to the Schumer box guide above, a rewards card requires cardholders to understand the eligibility and usage: Adhere strictly to the terms of service. Banks regularly changed their policies on rewards program albeit tossing out lucrative promotional campaigns – bearing in mind that a late payment can potentially wiped out all benefits being accumulated. Some financial planners tied up with irrelevant retail merchandising outlets which are of not much relevance, avoid these rewards cards at all cost!

Are you a fresh credit builder?

Just graduated from college or restarting your entire borrowing history, fret not, here are some useful tips in handling new debts. Firstly, you have to possess excellent credit. This is because debt financiers have a certain degree of trust towards newcomers – significantly low APRs and high rewards rates – attempting to sign young people up to boost market share. Observe the following guide below to avoid debt pitfalls:


Apply for secured credit card

Instead of the traditional debit card, wanting a branded outlook, why not sign up for a secured card. The only requirement is to pledge a cash deposit or asset as collateral. Reason being, the issuer significantly lowers the risk of lending defaults therefore willingly opens up to general public including those with poor credit or just starting out.

» Relevance: How do secured cards function?

» Relevance: List of secured credit cards to choose from


Obtain student credit card validation

Not enough lending records to produce? One segment, particularly student cards, caters to young college students above age 21. An employment income may be needed depending on the local financial institution. It is advisable to hold a steady one-year income or monthly allowance from parents or guardians.

» Relevance: Ready Credit designed for student cards – really?


Apply for sub-card

If you can piggyback on your parents’ credit cards, applying for a sub card is fantastic. It helps to control your individual expenses as “someone” is watching your back. Although the main focus is not on you, having a secured sub card can attain similar benefits to that of a normal card. Most issuers do lodge reports on authorized user’s activities to credit bureaus, thereby fetching higher recognition on your credit score [Wallet Primer, 2014].

» Relevance: How do authorized users increase lending histories?

Relevant Topics

» What is Credit Repair: Learn the art of building up your credit score here!


This article was originally published on December 23, 2013. It has since been updated.

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