Credit Card Q&A

Have a question about credit cards? Our experts answer the top ten most frequently asked credit card questions. Read our answers and submit your own question by email.

1. How do I apply for a credit card?
Applying for a credit card is easy! Simply choose a credit card online that meets your needs. Click on the orange “apply” button or the picture of the credit card and you will be connected to a credit card application. Most of the applications are very short and only take a minute or two of your time. If you would like a credit card application emailed to you, send us an email at cs@credit.com letting us know what kind of card you are interested in and we will reply with your credit card application.

2. How do I report a lost or stolen credit card?
To report your credit card lost or stolen, please call the customer service number on your billing statement. They will be able to help you close the card and issue you a new card. If you do not have your billing statement, either search online or call directory assistance (411) to ask for the toll-free number of the banking institution (ex. Capital One, Citibank, etc…) that issued your credit card.

3. How do I contact my credit card company?
Your creditor’s toll-free customer service number is printed on the back of your credit card in small lettering. Their customer service team will be able to assist you with billing, lost or stolen cards, fraudulent charges, change of address, and more. Unfortunately, Credit.com is not able to assist you with your account. Please contact your credit card company directly.

4. Where do I send my credit card payment?
If you have lost your billing statement and need help getting the address to make a payment, simply call the toll fee phone number on the back of your credit card. The number will be written in small lettering underneath your signature strip. Most credit card companies also allow you to pay your bill over the phone. To make a payment over the phone you may use the same customer service number on the back of your credit card.

5. What is a "secured" credit card?
A secured credit card can be a very helpful way to start building credit or to rebuild your credit. Secured credit cards are perfect for individuals who have been turned down for a credit cards, have never had a credit card, or are currently in bankruptcy. Secured cards offer guaranteed approval for all borrowers, despite their financial history.

Secured cards guarantee approval by asking you to secure the card with a deposit, usually $200 to $250. This deposit will act as your credit limit and will be returned to you when you cancel your card. While your card is active, your credit card company will report your status to the three major credit bureaus. Your credit line will periodically increase, helping to improve your overall credit score and credit history. These credit cards tend to have higher interest rates, especially when withdrawing cash from an advance fund, so use them wisely. You can apply for a secured credit card online today.

6. Why do I receive credit card offers in the mail and then get declined for a credit card?
Credit card offers often use reporting services from Innovis (Innovis is sometimes know as the “4th Credit Bureau”) to determine what credit card products to offer. However, once you submit your application, the credit card companies may use your credit scores from Experian, TransUnion, and/or Equifax to make the final decision whether to approve your application. Often the information from Innovis is different from the three major credit bureaus, thus causing the discrepancy.

7. How long will it take to receive my credit card?
You can expect to receive a letter in the mail with the status of your credit card application within 5-7 business days. If approved, you will receive your credit card within 10-15 days of your approval letter. The credit card company will inform of you of the estimated time it will take for your card to arrive along with a phone number in case you have questions on your approval letter.

8. What do I do if someone else has used my credit card or obtained a credit card in my name without my authorization?
Contact the credit card company immediately! Let them know you suspect you are a victim of identity theft. They will often remove fraudulent charges from your account. If a card was obtained without your authorization, cancel the credit card and report the fraud to the credit card company. Next contact Experian, Equifax, and TransUnion (the three major credit bureaus) and they will put a fraud watch on your credit. Click here to read more information on identity theft and credit monitoring programs.

9. Why should I have a credit card?
Credit cards help you build your credit, increase your borrowing power, and make major purchases. If your future goals include owning a home, buying a car, owning your own business, or traveling, having a credit card is an excellent first step.

Credit cards give you borrowing power. Your credit limit contributes to the amount of borrowing power you have. If you have several credit cards with large credit limits, you have a lot of borrowing power. This makes you more attractive to lenders because of your increased ability to pay back your loans. Credit cards also report your repayment history on a regular basis to the credit bureaus. If you use your cards wisely, lenders will see that you are a trustworthy person who makes your payments. A person who is responsible and has alternative means to repay loans is a low-risk applicant and has a much better chance of qualifying for a loan than someone with no history and no credit line.

Credit cards can also be used as an additional form of identification. They can be necessary when renting a car or staying in many hotels, and they are excellent alternatives to cash. If your credit card is lost or stolen, you can be reimbursed for any fraudulent charges made. If your cash is lost or stolen…good luck! Cash is much harder, if not impossible, to claim if it is stolen.. Credit cards come with many benefits, but borrowers should be careful to use them responsibly. You can apply for a credit card online now.

10. I have bad credit/no credit: Can I still get a credit card?
Sure you can! There are several different credit card options available to borrowers with credit troubles: secured, unsecured, and student credit cards. Student credit cards are regular credit cards designed for students who are first-time credit card applicants. You must be a student to qualify for these offers.

Secured cards offer guaranteed approval for all borrowers, despite their financial history. Secured cards guarantee approval by asking you to secure the card with a deposit, usually $200 to $250. This deposit will act as your credit limit and will be returned to you when you cancel your card. While your card is active, your credit card company will report your status monthly to the three major credit bureaus and your credit line will periodically increase, helping to improve your overall credit score and credit history.

If you are looking for something similar to the secured credit card but cannot afford to put down a deposit, you may want to consider an unsecured card for borrowers with credit problems. These cards allow you to apply with a processing fee of $39 that you pay after the credit card company receives your application. Your initial credit limit will be at least $250 and the following fees will be billed to your first statement: annual fee of $48, account set-up fee of $29, program fee of $95, monthly participation fee of $6, and an additional card fee of $20 per card (if applicable). These fees will reduce your available credit until they are paid. Although you will ultimately pay the same as if applying for a secured card, an unsecured card will give you the opportunity to spread out your payments over several months.

Our recommendation is if you are considering either the unsecured card or the secured card, choose the secured card. You will save money in the long run by going with the secured card, and the security deposit is refundable. The fees on the unsecured card are not refundable and you will have to pay interest on any initial charges you don’t pay right away.

Disclaimer: Credit.com is not a credit card company.