Credit Cards FAQ
Frequently asked questions about credit cards
Do you have questions about credit cards or Debit Cards? Send us an email and we'll try our best to provide you with the right answer.
- How do I get the best credit card deal?
- What should I do if my application is denied or downgraded?
- Does pre-approval guarantee me a credit card?
- Should I consolidate my credit card debt?
- How many credit cards should I have?
- How do I cancel a credit card?
- What are the APRs?
- What is the difference between a Fixed or variable APR
- How long is the grace period?
- How is the finance charge calculated?
- What are the fees?
- What are the cash advance features?
- How much is the credit limit?
- How do I find information about credit cards?
- What are your liability limits?
- What happens if my credit card is stolen?
- What can you do about billing errors?
- What's Blocking?
- How do I dispute a credit card purchase?
- Who has to pay the credit card bill?
- How do I expect to pay my credit card bill?
- What happens when my credit card payment is late?
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How do I get the best credit card deal?
What's the best credit card deal? Is a lower rate worth the annual fee? Which is better - flight miles, rebate points, or low rate? Consider all of these features when selecting the best credit card for you.
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What should I do if my application is denied or downgraded?
Credit report errors can happen, so periodically get a copy of your credit report to make sure everything is correct. If you do find an error in your credit record, write to the credit bureau that prepared the report and provide copies of relevant documentation.
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Does pre-approval guarantee me a credit card?
No. This doesn't mean you're guaranteed a card. It means that you have received a firm offer of credit based on criteria established by the company for what it wants in a customer. You must apply for the card and the company will conduct a full credit check. Tip: If you don't receive the card or the terms you were offered, ask the bank for the reasons.
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Should I consolidate my credit card debt?
If you have lots of debt, consolidation may save you time and money. Depending on your financial situation, there may be a solution that's right for you. Learn more.
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How many credit cards should I have?
There are good reasons to have more than one card, especially if your credit limit isn't high enough on one card to suit your needs. You don't want to be traveling and discover you can't charge a hotel room, car rental or airline ticket because you'd exceed your credit limit. Even so, most experts agree that two or three general-purpose cards and a few (if any) cards issued by stores or oil companies should be enough for the average family.
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How do I cancel a credit card?
Once you decide to cancel a card, take the following precautions. First, send a letter to the card issuer stating that you decided to stop the card. This clarifies, for your credit records, that the card was closed by you and not by the card issuer because of any problems you may have created. Also, cut up your old card and dispose of it in such a way that a thief rummaging through your trash can't piece it together and get your account number and expiration date-- it's all he needs to go on a shopping spree over the phone.
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The annual percentage rate--APR--is the way of stating the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest rate as a yearly rate.
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What is the difference between a Fixed or variable APR
Some credit cards are “fixed rate”--the APR doesn’t change, or at least doesn’t change often. Even the APR on a “fixed rate” credit card can change over time. However, the credit card company must tell you before increasing the fixed APR.
Other credit cards are “variable rate”--the APR changes from time to time. The rate is usually tied to another interest rate, such as the prime rate or the Treasury bill rate. If the other rate changes, the rate on your card may change, too. -
The grace period may vary by card issuer. It is the number of days you have to pay your bill in full without triggering a finance charge. For example, the credit card company may say that you have “20" days from the statement date, provided you paid your previous balance in full by the due date.” The statement date is given on the bill.
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How is the finance charge calculated?
Credit card companies use one of several methods to calculate the outstanding balance. The method can make a big difference in the finance charge you’ll pay. Learn more.
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Most credit cards charge fees under certain circumstances. Learn more.
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What are the cash advance features?
Some credit cards let you borrow cash in addition to making purchases on credit. Most credit card companies treat these cash advances and your purchases differently. If you plan to use your card for cash advances, look for this information first.
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The credit limit is the maximum total amount--for purchases, cash advances, balance transfers, fees, and finance charges--you may charge on your credit card. If you go over this limit, you may have to pay an “over-the-credit-limit fee.”
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How do I find information about credit cards?
You can find lists of credit card categories, card plans, rates, and terms by visiting our card application section.
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What are your liability limits?
If your credit card is lost or stolen--and then is used by someone without your permission--you do not have to pay