Factors that Might Make Your Credit Card Application Waiting

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If you’ve ever applied for a credit card and waited weeks or even months for a response, you know how frustrating it can be. Several factors can delay the approval of your credit card application, and understanding these factors can help you avoid the waiting game and get the credit you need more quickly. We’ll take a look at some of the most common factors that might cause your credit card application to be delayed. Credit score One of the primary factors that credit card issuers consider when evaluating applications is the applicant’s credit score. If your credit score is low or if you have a limited credit history, assess your application and decide whether you are eligible for the card, the issuer might need more time. To avoid delays due to your credit score, check your credit report before applying for a card. Every year, the three major credit reporting agencies will provide you with a free copy of your credit report ( Equifax, Experian, and TransUnion). Examine your re

Avoid These Mistakes While Using A Credit Card


Although a credit card is a valuable asset, using it improperly can result in significant financial loss. You might need to pay high-interest rates for carrying an outstanding balance. Late fees also apply when payments are missed. Not only this, but your credit score will also suffer if you delay payments, or close a credit card. However, developing the habit of using your credit card properly is not difficult. You can save money while establishing credit and perhaps even some nice benefits along the road, provided that you are responsible enough. When you use your credit card to make purchases, you can also receive reward points, cashback, and discount coupons. The credit card company offers interesting prizes and gift cards that may be redeemed for these reward points. 

You must be aware of how to use your credit card to prevent fraud. Following are some frequent credit card mistakes you must never make.

Mistakes to avoid while using a Credit Card:

Applying for several cards too frequently-

To take advantage of credit card incentives from various businesses, many people try to carry multiple credit cards. However, each card has a variety of features, including credit limits, interest rates, and payment deadlines. Thus, handling many cards can be challenging. People who use several credit cards frequently overlook the payment deadlines, which leads to unexpected repayment defaults. Using multiple credit cards is not always a bad idea, but you should make sure that you are not letting it impact your financial health. Moreover, you should avoid applying for multiple cards within a short time period as it can impact your credit score negatively. Even if you want different credit cards for different purposes, don’t just apply for all of them at once. Take a break of at least 3 to 6 months once you have applied for a credit card.

Paying only the minimum due amount-

Even though you should always pay at least the minimum amount owed, doing so is not recommended. Paying your bills partially can cause you to build debt and pay extra interest charges. The time it takes to repay debt might also be extended by months or even years if you only make the minimum payments. The facility of the minimum due amount is only for emergency situations so that you can at least avoid the late payment charges when you are not able to make the full payment.

Forwarding Private Information-

You could become a victim of a scammer who obtains your account information from the websites you made purchases from or by calling you pretending to be from a credit card provider and requesting personal information such as your credit card number, CVV, and Pin. Additionally, there might be a risk when your card could be stolen or lost. In such a situation, you should inform your card issuer as soon as possible and get your card blocked temporarily.

Credit Card Closure-

Several individuals choose a credit card without completely understanding its terms and conditions or intended use, and then they choose to close or delete it to avoid any additional problems. Therefore, the majority of them just stop using the credit card or close the old cards when they acquire a new one without bothering to follow the correct procedure. Your credit score could be impacted if you close your credit card account improperly.  Canceling the older cards will shorten your credit history and it can also impact your credit score further

Lack of maintenance of the Credit Utilization Ratio

Credit Utilization refers to your use of the available credit that is provided through credit cards. So, it’s just about how much credit facilities you’re using through your credit card. Your credit utilization will increase as you will spend more on your credit cards. Credit experts recommend keeping your usage ratio below or equal to 30%. If you are unable to keep this ratio, try to maintain 20% or more of your credit limit free. This ensures access to financing in times of need to help in maintaining a high credit score.

Bottom Line:

Thousands of individuals use credit cards. You might be able to clear some of these problems and save money if you are attentive and cautious. Since credit cards are quite convenient, you must use them. Prevent the above mistakes to avoid further obligations and financial harm. 

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