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Common Credit Card Application Mistakes

When you apply for a credit card, you hope to be approved. But making common mistakes on credit card applications can earn you a denial right off the bat. Knowing what you’re up against before you fill in the blanks will help ensure you have the best shot at getting the credit card you want.


Credit card application mistakes are most detrimental for people with no credit history or those with bad credit. People with good to excellent credit rarely worry about these errors because they are not used to denials. Fortunately, you can improve a less-than-desirable credit history by approaching credit management and the application process with these potential mistakes in mind.


Lying


Credit card applications ask for your income, your account balances, employment status and even your monthly housing expenses. Fudging these numbers could give you access to more credit, but lying on a credit card application is considered fraud. Credit card fraud can carry significant penalties, including prison time — hardly worth the potential payoff of a higher credit limit.


Applying for too many cards too quickly


When your credit card application is denied, it’s tempting to fill out another and another. But too many credit inquiries can hurt your credit score and further increase the likelihood that you’ll be denied again. Instead of applying for credit cards en masse, choose one and wait at least six months before filling out another application.


Failing to read the fine print


Know what you’re getting into before you apply. Don’t accept the first credit card offer in your mailbox; instead look for the right credit card for your needs. Make sure you consider interest rates, annual fees and various rewards programs. Also, do some research on how easy or difficult it is to get a specific card. Applying for a credit card for people with excellent credit could be an exercise in futility if you have a less than stellar credit history.


Not considering a cosigner


If you go into the credit card application process knowing you might be denied, you should consider a cosigner. A cosigner essentially vouches for your creditworthiness and stands to take the fall if you fail to make your payments. But having a cosigner with good credit will increase the likelihood of an approval. You’ll want to find someone with whom you have a good relationship and make every effort to keep the credit card in good standing if approved, because you aren’t the only one with your credit on the line.


We all make mistakes, but the wrong move when applying for credit could cost you for years to come.




Image via iStock.


The post Common Credit Card Application Mistakes appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7

5 Things To Do With Mail Credit Card Offers

You may have noticed an uptick in the number of credit card offers you’ve received in your mailbox this year. Direct-mail marketing for cards was expected to increase in 2014 as recession recovery continues.


But before you go hog wild and sign up for all the credit cards you get offers for, examine the offer to see if its claims hold up.


1. Read the fine print.


Mail credit card offers are essentially advertisements, so read them carefully. Here are some things to look for:



  • Annual Percentage Rate (APR): The yearly interest rate you will pay on your credit card balance. Generally, the better your credit is, the lower your APR will be. Look for offers that give you the lowest APR Avoid paying interest at all by paying off your balance completely each month.

  • Annual fees: Some cards charge yearly amounts simply for having them. Look for cards with low or no annual fees.

  • Credit limit: The maximum amount of money you can charge to a credit card. It’s normally determined after you apply, but some mail offers list minimum credit limits in the ad.

  • Penalty fees: These include late fees, over-the-credit-limit fees and more. As with all fines, you want to avoid high ones.


2. Is it a pre-screened offer?


Many mail credit card offers advertise that they’re “pre-screened” or “pre-approved.” This means the issuer bought your credit information from one of the three main credit bureaus – Equifax, Experian or TransUnion – and determined that you fit the minimum requirements for the card. Being pre-approved doesn’t affect your credit score until you apply for the card and doesn’t guarantee that you will be approved.


3. Apply if you’re interested.


If the card seems like a good fit for you, apply for it. The issuer will check your credit report and decide whether to approve you. A word of caution: Don’t apply for every card offer you receive. Applying for multiple cards in a short time frame can hurt your credit score.


4. Shred the mail offer.


Whether you decide apply for the card, shred the physical mail offer. It may contain personal information that identity thieves can swipe from your recycling bin and use against you.


5. Opt out.


If you’re tired of seeing credit card offers in your mailbox, call 1-888-5-OPTOUT or visit http://ift.tt/VQQvy8 to remove your name from mailing lists permanently or just for five years.


The Takeaway: Direct mail offers can be a good way to learn about a particular credit card, but you should always do extra research to understand exactly what the offer entails before you apply.


The post 5 Things To Do With Mail Credit Card Offers appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7

Common Credit Card Application Mistakes




When you apply for a credit card, you hope to be approved. But making common mistakes on credit card applications can earn you a denial right off the bat. Knowing what you’re up against before you fill in the blanks will help ensure you have the best shot at getting the credit card you want.


Credit card application mistakes are most detrimental for people with no credit history or those with bad credit. People with good to excellent credit rarely worry about these errors because they are not used to denials. Fortunately, you can improve a less-than-desirable credit history by approaching credit management and the application process with these potential mistakes in mind.


Lying


Credit card applications ask for your income, your account balances, employment status and even your monthly housing expenses. Fudging these numbers could give you access to more credit, but lying on a credit card application is considered fraud. Credit card fraud can carry significant penalties, including prison time — hardly worth the potential payoff of a higher credit limit.


Applying for too many cards too quickly


When your credit card application is denied, it’s tempting to fill out another and another. But too many credit inquiries can hurt your credit score and further increase the likelihood that you’ll be denied again. Instead of applying for credit cards en masse, choose one and wait at least six months before filling out another application.


Failing to read the fine print


Know what you’re getting into before you apply. Don’t accept the first credit card offer in your mailbox; instead look for the right credit card for your needs. Make sure you consider interest rates, annual fees and various rewards programs. Also, do some research on how easy or difficult it is to get a specific card. Applying for a credit card for people with excellent credit could be an exercise in futility if you have a less than stellar credit history.


Not considering a cosigner


If you go into the credit card application process knowing you might be denied, you should consider a cosigner. A cosigner essentially vouches for your creditworthiness and stands to take the fall if you fail to make your payments. But having a cosigner with good credit will increase the likelihood of an approval. You’ll want to find someone with whom you have a good relationship and make every effort to keep the credit card in good standing if approved, because you aren’t the only one with your credit on the line.


We all make mistakes, but the wrong move when applying for credit could cost you for years to come.




Image via iStock.


The post Common Credit Card Application Mistakes appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1zCcL6h

5 Things To Do With Mail Credit Card Offers




You may have noticed an uptick in the number of credit card offers you’ve received in your mailbox this year. Direct-mail marketing for cards was expected to increase in 2014 as recession recovery continues.


But before you go hog wild and sign up for all the credit cards you get offers for, examine the offer to see if its claims hold up.


1. Read the fine print.


Mail credit card offers are essentially advertisements, so read them carefully. Here are some things to look for:



  • Annual Percentage Rate (APR): The yearly interest rate you will pay on your credit card balance. Generally, the better your credit is, the lower your APR will be. Look for offers that give you the lowest APR Avoid paying interest at all by paying off your balance completely each month.

  • Annual fees: Some cards charge yearly amounts simply for having them. Look for cards with low or no annual fees.

  • Credit limit: The maximum amount of money you can charge to a credit card. It’s normally determined after you apply, but some mail offers list minimum credit limits in the ad.

  • Penalty fees: These include late fees, over-the-credit-limit fees and more. As with all fines, you want to avoid high ones.


2. Is it a pre-screened offer?


Many mail credit card offers advertise that they’re “pre-screened” or “pre-approved.” This means the issuer bought your credit information from one of the three main credit bureaus – Equifax, Experian or TransUnion – and determined that you fit the minimum requirements for the card. Being pre-approved doesn’t affect your credit score until you apply for the card and doesn’t guarantee that you will be approved.


3. Apply if you’re interested.


If the card seems like a good fit for you, apply for it. The issuer will check your credit report and decide whether to approve you. A word of caution: Don’t apply for every card offer you receive. Applying for multiple cards in a short time frame can hurt your credit score.


4. Shred the mail offer.


Whether you decide apply for the card, shred the physical mail offer. It may contain personal information that identity thieves can swipe from your recycling bin and use against you.


5. Opt out.


If you’re tired of seeing credit card offers in your mailbox, call 1-888-5-OPTOUT or visit http://bit.ly/1wQvecR to remove your name from mailing lists permanently or just for five years.


The Takeaway: Direct mail offers can be a good way to learn about a particular credit card, but you should always do extra research to understand exactly what the offer entails before you apply.


The post 5 Things To Do With Mail Credit Card Offers appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1zCcH6D

Good Credit? 5 Tips to Keep it That Way

You worked hard to build up your credit and were rewarded with one of the best credit cards for good credit.


But now you have the challenge of keeping your credit score up.


A good FICO score ranges from 690-719. Credit cards for good credit have low interest rates and include opportunities to earn rewards.


But, little financial mistakes you make can add up to big negatives on your score. If you want to maintain your good credit, here are five ways to do it:


Pay all of your bills on time


Don’t wait until the last minute to pay your bills or let due dates pass. You need to pay all of your bills on time, including your credit card, car payments, student loans, utilities, internet, cell phone, rent or mortgage and more. Late payments will be reported to credit-reporting agencies, and before long you’ll see dings to your credit score.


An easy way to make sure your bills are paid is to set up automatic payments on all accounts.


Keep an eye on the amounts you owe


The amounts owned category of your credit report is based on your total debt and credit limit-to-debt ratio. Carrying a high limit that creeps too closely to your credit limit can hurt your credit score. It’s more important to pay your bills and keep a low debt. You should aim for a credit-limit-to-debt ratio of 70:30.


Don’t open several accounts at once


Just because credit cards for people with good credit are available to you, that doesn’t mean you should open too many at once. Even if you want to collect different rewards credit cards or you want to get a retail credit card to save a percentage on your order at checkout, you shouldn’t do it. Opening a few different accounts at once means hard inquiries will be made on your account, which dings your credit score. It also doesn’t look good on your credit report to rapidly increase your credit limit.


Don’t take out cash advances


There are always scenarios where plastic just won’t cut it and you’ll need some cash. Your good credit credit card may offer cash advances, but it’s not a good idea for you wallet or your credit score. Fees and immediate interest accumulation make these cash advances more difficult to pay back, which leaves you vulnerable to default.


If you do use a cash advance, make sure you have the money elsewhere to pay it back right away. Otherwise, lenders will report your default to credit reporting agencies, which will lower your credit score.


Don’t ignore your credit report


You may have good credit now, but if you don’t keep a close eye on your credit history, you might miss errors that could seriously affect your score. Remember that you can check your credit report three times a year, once at each of the three credit-reporting agencies: Equifax, Experian and TransUnion.




Image via iStock.


The post Good Credit? 5 Tips to Keep it That Way appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7

Good Credit? 5 Tips to Keep it That Way




You worked hard to build up your credit and were rewarded with one of the best credit cards for good credit.


But now you have the challenge of keeping your credit score up.


A good FICO score ranges from 690-719. Credit cards for good credit have low interest rates and include opportunities to earn rewards.


But, little financial mistakes you make can add up to big negatives on your score. If you want to maintain your good credit, here are five ways to do it:


Pay all of your bills on time


Don’t wait until the last minute to pay your bills or let due dates pass. You need to pay all of your bills on time, including your credit card, car payments, student loans, utilities, internet, cell phone, rent or mortgage and more. Late payments will be reported to credit-reporting agencies, and before long you’ll see dings to your credit score.


An easy way to make sure your bills are paid is to set up automatic payments on all accounts.


Keep an eye on the amounts you owe


The amounts owned category of your credit report is based on your total debt and credit limit-to-debt ratio. Carrying a high limit that creeps too closely to your credit limit can hurt your credit score. It’s more important to pay your bills and keep a low debt. You should aim for a credit-limit-to-debt ratio of 70:30.


Don’t open several accounts at once


Just because credit cards for people with good credit are available to you, that doesn’t mean you should open too many at once. Even if you want to collect different rewards credit cards or you want to get a retail credit card to save a percentage on your order at checkout, you shouldn’t do it. Opening a few different accounts at once means hard inquiries will be made on your account, which dings your credit score. It also doesn’t look good on your credit report to rapidly increase your credit limit.


Don’t take out cash advances


There are always scenarios where plastic just won’t cut it and you’ll need some cash. Your good credit credit card may offer cash advances, but it’s not a good idea for you wallet or your credit score. Fees and immediate interest accumulation make these cash advances more difficult to pay back, which leaves you vulnerable to default.


If you do use a cash advance, make sure you have the money elsewhere to pay it back right away. Otherwise, lenders will report your default to credit reporting agencies, which will lower your credit score.


Don’t ignore your credit report


You may have good credit now, but if you don’t keep a close eye on your credit history, you might miss errors that could seriously affect your score. Remember that you can check your credit report three times a year, once at each of the three credit-reporting agencies: Equifax, Experian and TransUnion.




Image via iStock.


The post Good Credit? 5 Tips to Keep it That Way appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1zC5Tpw

When to Apply for a Credit Card for Bad Credit

Applying for a credit card is dangerously easy. It only takes a few minutes, whether you do it online or fill out a paper form. But it’s a serious financial decision that should not be undertaken lightly.


If you’re a candidate for a credit card for people with bad credit, that’s even more reason to proceed with caution. Every time you apply for a credit card, your credit score takes a five-point hit. That’s no big deal if your credit is a healthy 750, but can make quite a difference if you’re trying to rebuild your credit from the low 600s or below.


Another part of your credit score—15%—is determined by the length of your credit history, which is calculated by looking across all your accounts to see how long they’ve been open. That means opening a new account brings down the average age of your accounts, and that can hurt your score.


Credit cards for people with poor credit serve an important purpose. Their value is not in the buying power they extend, but in the opportunity they represent to rebuild your credit. The best way to rebuild credit is to pay your bills on time and reduce the amount of available credit you’re using. That’s why your first move, if you already have credit card accounts open, is to make it an ingrained habit to pay the bills on time. Paying down debt is also very important, both for your credit score and for your overall financial well-being.


But if you don’t have any credit cards at all, it may be worth the small hit to your score to apply for a bad credit credit card. Once you’re approved, you must exercise iron control and charge no more than a third of the card’s available credit at a time. If you need to spend more than that in a given month, pay off the balance early so your new purchases don’t push your balance above that magic number even temporarily.


The bottom line is that you shouldn’t apply for credit cards you don’t need. Your score will take a hit when you hit the “apply” button, and cards for people with bad credit don’t tend to offer high credit limits, generous rewards or low fees anyway. So you should only apply for such a card if you really need one—especially if you don’t have any credit cards at all.




Caution image via Shutterstock.


The post When to Apply for a Credit Card for Bad Credit appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7