Questions and Answers about Credit Cards

So many lending companies are offering credit cards and it’s not just one type of card –they range from business cards to credit lines for students to ones that cater to those with bad credit. When planning to apply for or to get a credit card or credit cards for that matter, there are a few things you need to know:

What kind of credit card should I get?

This would depend on what you will be using it for. If you are interested in cards with rewards programs, getting a rewards credit card is a fine idea. There are also cards fit for those who travel a lot i.e. cards that give you points for every mile that you fly.

Should I keep one type of credit card for the rest of my life?

The lifestyle you have now might not be the same lifestyle you’d be living in the next few years. Change is the only permanent thing in this world that’s why when it comes to your credit card, there is also a need for you to review your old ones and see if they are still beneficial to you.

What does my credit score have to do with my application?

Whenever you apply for a credit card, a mortgage or a loan, your credit rating will always be checked. This is basically a score card of whether you pay on time or not. If you have a credit score that is good enough i.e. 720 to 750 or higher, getting a credit card or a loan will be easier compared to those who have lower scores.

What if I have bad credit?

There are banks and lending companies that offer credit lines for individuals who have bad credit. These cards are usually used to establish a new credit line for repairing one’s credit.

What is the difference between a credit card and a debit card?

A credit card has interest rates because this is money that you borrow from a bank or a lending institution. A debit card on the other hand can be used like a credit card but the only difference is, the money inside that card is your own. Credit cards are often very useful though especially for emergency purchases. If you are thinking of applying for credit cards, take a look at comparison sites today for you to get low interest rates.