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What is a Bad Credit Score?

By: John Ulzheimer, 7/3/2023

Your credit scores are calculated and delivered to lenders almost 25 billion times each year. For the sake of comparison, 25 billion is more than three times the earth’s population. Lenders heavily rely on your credit scores as part of their decision-making process, and it’s in your best interest to avoid having bad scores. But what exactly is a “bad” credit score? Scores Below 650 Are Generally Considered Bad Commonly used credit scores, primarily those built by... read more »

8 Times Not to Use Your Credit Card

By: Erica Sandberg, 11/28/2023

You opened a credit card so you could use it, not for it to gather dust. You can use it to make safe and secure transactions for the things you want and need. Even better, you can earn benefits while you charge if your credit card has a rewards program. But there are a number of circumstances when you may be better off restricting your own access to the account. Here are eight times to keep your plastic in your pocket. 1. Making the minimum payment will be a struggle. ... read more »

April Is Financial Literacy Month — Here Are 7 Ways to Take Action

By: Marcie Geffner, 5/23/2023

April is "Financial Literacy Month." While the origins of this celebration may be a bit murky, its purpose is clear: to encourage people of all ages, genders, backgrounds, occupations, and beliefs to beef up their financial literacy. Financial literacy refers to an individual's knowledge of concepts related to personal finances. The most significant of these include budgeting, saving, investing, and borrowing. Understanding these and other areas of personal finance can help you... read more »

What Is Credit Card Refinancing? 6 Ways to Lower Rates (Oct. 2024)

By: Erica Sandberg, 10/1/2024

Carrying over credit card obligations from one month to the next can be an expensive burden, especially as interest rates creep ever higher. The current average interest rates for all new card offers are between 21.10% and 27% and can go even higher for certain types of cards or if you’ve made late payments. If you can’t pay off an expensive debt, the financing fees will add up quickly. For this reason, you may want to pursue refinancing. There are several ways to do it, but... read more »

Credit Cards After Death: Here’s What Happens

By: Erica Sandberg, 12/14/2022

There are many myths surrounding credit card debt, and a fair number concern what happens to a balance after the person who borrowed the money dies. Some people think the obligation will be automatically wiped clean, while others believe the debt is transferred to relatives. The truth is that it all depends on the situation. Here's the real story about what happens to a person’s credit card debt after they die. Navigate This Article: ... read more »

50 Important Credit Card Terms You’ll Find in a Cardholder Agreement

By: John Ulzheimer, 12/12/2022

If you’ve ever read through a cardmember agreement, you may have thought the bank was speaking a foreign language. The credit industry has its own nomenclature and tends to speak in acronyms. And while you may not fully understand everything you’re reading, I can assure you that it’s very important to your financial health. What follows is a guide to many of the credit-related terms and acronyms that you will likely see in a credit card’s terms and conditions. Terms... read more »

Can You Have Good Credit With Credit Card Debt?

By: John Ulzheimer, 11/1/2022

There’s no question that being in credit card debt is a bad deal financially. Credit card debt, especially if it’s too close to your credit limits, can damage your credit score. Having made that point, it’s not entirely impossible to still have respectable credit even if you have balances on one or more of your credit card accounts. If you’re working to pay down your credit card debt, which you should, you may be wondering just how serious your situation is in terms of... read more »

20 Things You Didn’t Know Your Credit Card Could Do

By: Erica Sandberg, 8/2/2024

The most basic function of a credit card is that it allows you to purchase things using the issuer’s funds. Each time you charge, you borrow the amount of that purchase. At the end of the month, you'll get the bill for everything you bought and are given the option to pay in any increment above the minimum amount due. Your credit card can do plenty of other things for you, too. Depending on the card, yours may entitle you to all or some of the following perks. 1.... read more »

How to Use a Credit Card

By: Andrea Woroch, 11/3/2022

Credit cards are an essential financial tool that many Americans rely on every day, whether to pay for daily essentials, monthly utilities, or unexpected bills. There are many good reasons to choose a credit card when deciding how to pay for goods and services, including convenience, multiple layers of protection, and even rewards. But credit cards come with real financial risks you need to consider before you open an account and start charging. One of the most... read more »

How to Get a Free Credit Score From Your Credit Card Company

By: Marcie Geffner, 9/21/2023

Checking your credit score is a smart financial habit. While your score isn’t the only criteria for whether you’ll be approved for new cards or other forms of credit, it typically is one of the most important factors that card issuers and other lenders consider. By checking your score, you can determine whether it reflects your own perception of your creditworthiness. If your score is higher than you thought, well done! If it’s lower than you had expected or hoped, you can... read more »

Is Capital One a Good Credit Card?

By: Eric Bank, 8/13/2024

We get it. After years of watching ads about the contents of your wallet, you're finally asking, "Is Capital One a good credit card company?" OK, we'll field that softball and introduce you to all the company's cards. But we'll also devote time to answering other burning questions about Capital One credit cards. By the end of this article, you'll know enough about the company to make your own commercial. Or just sit back and watch Mr. Samuel L. Jackson make his irresistible... read more »

6 Great Reasons to Use a 0% APR Deal (Oct. 2024)

By: Erica Sandberg, 10/1/2024

Credit cards that offer 0% APR deals to new cardholders can be compelling. There are two basic types — one for new purchases and the other for balance transfers. Some even offer a 0% APR on new purchases and balance transfers. They work like this: New purchases: When you open the account, you may have a year or longer to use the credit card for purchases without financing fees on any debt you carry over from month to month. Balance transfers: You can open a credit... read more »

How Many Credit Cards Is Too Many?

By: Marcie Geffner, 5/24/2022

Many people love having lots of credit cards. One for cash back, one for travel, and a third for business expenses. More for other reasons, or just because, why not? For these card-loving folks, no specific number of cards reaches the point of "too many." On the other hand, other people may have concerns that dozens of cards could facilitate overspending or result in missed payments and impaired credit. With good arguments on both sides of the "How many cards is too many?"... read more »

3 Credit Cards For Kids & Ways to Help Them Build Credit (Oct. 2024)

By: Erica Sandberg, 9/24/2024

Children often want to feel more grown-up than they actually are, and that includes craving a certain amount of financial autonomy. Yet as much as kids may want to have their own credit card, minors cannot legally sign a contract. You must be at least 18 years old to get a credit card as the primary cardholder. Prepaid cards can bridge the gap. They let kids enjoy spending freedom without the risk of amassing credit card debt or credit damage. They can also help children... read more »

What Are the Different FICO Scores Used in Lending Decisions?

By: John Ulzheimer, 3/14/2022

In 1989, a credit score with the brand-name Beacon was made commercially available by Equifax in partnership with a little-known company based in San Rafael, California, called Fair, Isaac and Company. Thirty-plus years, a name change, and hundreds of billions of scores later, checking your FICO (the acronym for the Fair Isaac Corporation) credit scores remains standard operating procedure by thousands of lenders in the United States. One small but important point has to be made... read more »

What Is a Schumer Box?

By: John Ulzheimer, 11/15/2023

Credit card agreements contain a lot of information that can be challenging for the average person to digest. In fact, did you even read all of that fine print when you applied for and opened your last credit card account? The same may be true about the details in your monthly credit card statements. Most consumers don't take the time to read through pages upon pages of fine print. And even those who do may not fully understand what it is they are reading. One such... read more »

When Do Credit Cards Get Reported to the Credit Bureaus?

By: John Ulzheimer, 12/15/2021

Your credit reports are not static objects frozen in time. Instead, the information on credit reports tends to change often. In fact, your credit reports change anytime a creditor sends an update about one of your accounts to one of the credit bureaus. This tends to occur multiple times each month, depending on how many open and active accounts you currently maintain. If you're in the habit of actively checking your credit reports or you have signed up for a service that monitors... read more »

Which Credit Card Should I Pay Off First? (Oct. 2024)

By: Marcie Geffner, 10/1/2024

Unwanted credit card debt can feel overwhelming. Having a plan to pay it off and knowing which card you should pay off first can help you feel more in control of your finances and improve your financial situation. The first step is to make a list of your cards with your current balances and the annual percentage rates (APRs) you're currently paying. If you don't know your APRs, check your most recent monthly statements or contact your card companies for this information. You may be... read more »

5 Best Starter Credit Cards by Experts (Oct. 2024)

By: Eric Bank, 10/1/2024

Folks regularly ask us, “What is the best starter credit card?” These cards represent the means to build credit history, which is an important consideration for young people starting their work or academic careers and not-so-young folks who are reluctant to use any type of credit. That’s why we’ve assembled a list of our highest-rated cards that welcome new cardmembers who have little or no credit history. Read on to see which one works best for you. ... read more »

When Does Interest On a Credit Card Start? (Oct. 2024)

By: Marcie Geffner, 10/1/2024

Interest charges for credit card purchases don't have to cost an arm and a leg — or even a finger or toe. With its relatively high interest rates, credit card debt can be among the most expensive debt you'll ever experience. But a few smart habits can set you up to never pay a penny of credit card interest, which can save you hundreds or thousands of dollars that you can reallocate to higher priorities, such as living expenses, savings, and investments. The first thing you need... read more »

14 Types of Lenders You Should Know About

By: Erica Sandberg, 10/14/2021

The United States has no shortage of available lenders. Some are financial institutions that offer many different products and services, while others are more narrow in scope. They may be for-profit, nonprofit, or even peer to peer. It is important to approach the best lender for your needs and credit rating when you want to borrow money. Thankfully, you have plenty of options from which to choose. Here are 14 types of lenders you should know about and why you would... read more »

When Were Credit Scores Invented?

By: John Ulzheimer, 9/29/2021

Credit scores are an important part of everyday financial life in America. Do you want to buy a house? Do you need to finance a new or used vehicle? Are you looking for a loan, credit card, or insurance coverage? If you answered “Yes” to any of these questions, it's almost certain that some business will use a credit score or several of your credit scores to evaluate whether it's a safe investment to work with you. That same business will also probably use a credit score to... read more »

How to Read a Credit Card Agreement

By: Andrea Woroch, 10/7/2021

Credit cards can be hard to resist, thanks to enticing sign-up offers from free cash back to zero-percent interest for the first year on purchases to enough miles that could cover a couple of roundtrip tickets to an exotic destination. Some even extend a one-time discount off your store purchase or may provide a rebate when booking a hotel. Though all these rewards and promotions seem great on the surface, spending time to understand a credit card’s terms and conditions is more... read more »

6 Steps for Graduating From Secured to Unsecured Credit (2024)

By: Erica Sandberg, 1/27/2024

A secured credit card can be a terrific option when your credit rating isn’t high enough to qualify for a traditional unsecured credit card. To get a secured card, you put down a cash deposit that acts as collateral, and the issuer provides you with a credit line equal to -- or perhaps even greater than -- your deposit. This deposit is kept in a separate custodial account. All parties come out ahead with these tools. The issuer assumes little risk in lending you money because, if... read more »

How Long Does It Take to Build a Credit Score?

By: John Ulzheimer, 6/14/2021

Credit scores are the go-to tool used by lenders to assess the risk of doing business with you. Good credit scores mean good financing deals. Poor credit scores mean less attractive offers and terms. And while many consumers focus, rightly, on building a credit history, it’s also important to focus on building a credit score at the same time. There’s no universal answer to the question, “How long does it take to build a credit score?” Instead, the time frame is going to be... read more »

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