CREDIT QUESTIONS AND ANSWERS

Credit FAQS - Frequently Asked Questions

Why should I apply for a credit card?

Do I qualify for an instant approval credit card?

What is a credit rating or a credit score?

How does the FICO scoring system work?

What is meant by poor credit, fair credit, good credit and excellent credit?

What can I expect if I have a low credit rating or if I have a high credit rating?

What is a secured credit card?

What is a unsecured credit card?

What are sub-prime credit cards?

Is it possible to get an unsecured credit card if I have poor credit?

Is there a card that I can apply for to re-establish my credit after filing for bankruptcy?

I prefer a credit card with a high credit limit and low interest rates.

When would I use a balance transfer?

I am interested in finding low interest credit cards to transfer out of my high interest accounts.

I would like to consolidate all of my credit cards into one credit card with low interest rate, but I can't find a credit card issuer that will offer me a high enough credit limit to consolidate all my cards.

Which credit issuers will accept a first time applicant?

What credit card companies will accept applicants with poor credit?

I have bad credit but need a card with a high limit. Is there anything that I can do?

I prefer to pay no annual fees, what are my choices?

I would like an air miles credit card, what are my choices?

I need a credit card for my business. Where do I go?

Why is credit important?
Creating a good credit track record will increase your chances of receiving a personal loan, a credit card or a mortgage. In addition, as your credit history improves the amount of credit you are awarded will increase. Good credit will allow you to receive a credit card with low interest rates, a larger credit limit on your credit card as well as a larger mortgage.

Why should I apply for a credit card?
There are several advantages to using a credit card for payment.

Currently, most businesses across the world and online accept credit cards for payment.
Credit cards are easier, especially when compared to writing checks.
Credit cards are usually safer than carrying cash or checks.
There are safe and protected methods to use your credit card number to purchase items online.
The use of a credit card to purchase an item or service may provide you with extra protection if the item or service fail to meet your expectations. Many card lenders offer a grace period of up to 25 days.
In essence, the use of credit cards is an interest-free loan for a month (if you pay your balance in full each month).
The use of a credit card can be effective in the case of an emergency where significant amounts of cash are required.
Monthly credit card statements allow you to track your personal expenses. Purchases can be sorted by category or date and downloaded into a financial record keeping software program on your computer. Online banking is a safe and convenient method to make your monthly payment online.
Maintaining the monthly payments on your credit card over time will help you to build a solid credit history so you can be in good standing when you approach a lender to apply for a more significant loan.

Do I qualify for an instant approval credit card?
Instant card approval is provided to borrowers with a good credit history based on the lenders prescribed criteria. Filling out your online application fully will also help you to receive your credit card quickly.

Credit Score and FICO FAQS - Frequently Asked Questions

What is a credit rating or credit score?
This refers to the numerical score lenders give to each borrower based on the borrower's debt level and whether the borrower pays his debts on time. The primary system used is called FICO and refers to Fair Issac Corp, the company that originated the credit scoring method.

How does the FICO scoring system work?
The scores range between 300 and 850 and are calculated statistically with information from the borrower's credit history. The statistical models for generating credit scores are subject to federal regulation which insists that credit scoring be empirical and statistically sound, and forbids credit scoring based on such factors as race, religion, national origin, sex and marital status. Federal Regulation also requires that the acceptance or denial of a credit application by a lender be issued in writing and the lender must state to the borrower the reason for the denial.

What is meant by poor credit, fair credit, good credit and excellent credit?
This refers to your credit score: the higher your score, the better your credit.

Excellent Credit: FICO score 750-850
Good Credit: FICO score 660-749
Fair or Average Credit: FICO score 620-659
Poor Credit: FICO score 350-619
No Credit: FICO score 0

What can I expect if I have a low credit rating or if I have a high credit rating?

Banks and other credit lenders use your FICO scores to make informed decisions on what kinds of credit opportunities to offer. Someone with a higher credit score or rating can expect to receive credit cards with lower interest rates, higher credit limits, better rewards point programs and lower fees. Someone with lower credit scores can expect to pay higher credit card interest rates, higher fees and expect a lower credit limit. Someone with a poor credit score will need to look at secured credit cards and prepaid credit card offers often with lower credit limits and higher fees.

How do I find my FICO score?
To get the full picture it will be necessary to look at the FICO score reported to each of the three main credit reporting agencies: Equifax known as "EQ", Experian known as "EX" and TransUnion known as "TU". You will have a unique FICO rating with each agency. It is not actually necessary to know your FICO score to apply for a credit card on this site. But having some idea of your general credit rating will help you to understand what credit opportunities are open to you.

Credit Card FAQS - Frequently Asked Questions

What is a secured credit card?
Money deposited into an account will be necessary to secure the card. Your security deposit is considered to be your credit limit. This allows you to build your credit history while enjoying all of the benefits of a credit card.

What is an unsecured credit card?
Most credit cards issued are unsecured credit cards. With an unsecured card your credit limit is set in accordance with your credit history. As your credit history improves, so will your credit limit. If your credit history declines then your credit limit will decrease.

What are sub-prime credit cards?
Sub-prime credit cards are cards with fees and higher interest rates and are provided to consumers with poor credit or no credit. They usually require a security deposit.

What are prime credit cards?
Prime credit cards are credit cards with low interest rates awarded to consumers with good or excellent credit and do not require a security deposit

Is it possible to get an unsecured credit card if I have bad credit?
It is possible to get both unsecured and secured cards for poor credit. There are several different types of credit cards that will help you establish or re-establish your credit history. Look for this type of credit card in our "limited credit" category.

Is there a card that I can apply for to re-establish my credit after filing for bankruptcy?
You can expect to pay processing fees or deposits, but a prepaid or secured credit card will bring you one step closer to restoring your credit history. Look for this type of credit card in our "limited credit" category.

I prefer a credit card with a high credit limit and low interest rates.
The highest credit limits and lowest interest rates are available to those with good and excellent credit. These are most often available in Premium and Platinum credit cards which are offered in all the credit card categories in this website.

When would I use a balance transfer?
You might like to transfer your balance of money owed on one credit card with a higher interest rate to another credit card with a lower rate, this is called a balance transfer.

I would like to consolidate all of my credit cards into one credit card with low interest rate, but I can't find a credit card issuer that will offer me a high enough credit limit to consolidate all my cards.
In this case if you want to consolidate under a lower interest credit card, we suggest you open a new credit card account with low interest and transfer a few (not all) of your balances there. Once the account has been established you can request an expanded credit line and transfer more of your balances until all balances are under one credit card.

Which credit issuers will accept a first time applicant?
Search our site for cards that accept applicants with Fair or Average Credit. Also, several credit card companies will offer Student Credit Cards to first time applicants currently enrolled in higher-education institutions. Prepaid and Secured credit cards are good first time credit cards. Please view the First Time Credit Card section of this website for full details on all opportunities available to first time credit cardholders.

What credit card companies will accept applicants with poor credit?
Most Banks or Credit Card issuers offer credit options for those with poor credit or no credit. Select First Time Credit Card, Secured Credit Cards or Prepaid Credit Cards on our web site.

I have bad credit but need a card with a high limit. Is there anything that I can do?
We recommend trying one of the secured credit cards available in the Secured Credit Card category on our site. With a deposit of about $2,000, you should be able to get a $5,000 secured credit card.

I am interested in finding low interest credit cards to transfer out of my high interest accounts.
You can find low interest credit cards if you select Balance Transfers Credit Cards or in the Low Interest Credit Cards section of this web site. The lowest interest rates are available to those with good and excellent credit. It is also possible to get an introductory interest rate of 0% for up to 15 months. For 0% APR please go to the 0% APR section of this website.

I prefer to pay no annual fees, what are my choices?
There are credit cards with no annual fees in almost every category of this website, whether you choose a business credit card or a balance transfer credit card it should be possible to find a no annual fee credit card.

I would like an air miles credit card, what are my choices?
For a credit card offering air miles rewards programs there are several categories to choose from within this website. Airline Credit Cards offers credit cards from major airlines. Air Miles Credit Cards offers credit cards with air miles rewards programs on any airlines. Travel Rewards Credit Cards also offers air miles rewards point programs and the Business Credit Card section offers air miles credit cards for business users.

I have questions about applying for a business credit card. Where do I go?
To apply for a business credit card, please click on Business Credit Cards. This link will give you many options of business credit cards for your small business or corporation. Business credit cards can be used to secure a large line of credit at a low interest rate or even 0% APR for up to 15 months. A business credit card can be used to gain rewards points for business travel or cash back rewards on your everyday business purchases.

If you have questions about the application process, please review our Credit Card Application FAQS page.

If you have further questions, please contact us:

If you have questions about the status of your application please go to our Contact Us page for complete details.