Useful Facts about Credit and Credit Cards - Credit

Convenience Check Received with your Credit Card - Credit

Very often when you receive your credit card bill, along with it comes a check, often of about $1000, to encourage or entice you to spend it.
But before you go on a shopping holiday, take note of the points mentioned below, which are applicable to any cash advance on a credit card, be it a convenience check or an ATM withdrawl.

About Credit Card Cash Advance - Credit

You may be charged anywhere between 16% to 20% for a cash advance. The rate of interest on cash advance is much higher than on a purchase. There is an upfront fee of upto 4% on a cash advance. There may be no grace period for a cash advance, so interest is charged on it the moment you take that advance.

Some Wrong Beliefs about Credit

• If you close old accounts your credit score will improve. This is false and very likely the opposite is true.
• If you make payments on a bad credit, it will be removed from your report. This is also false, the bad record may be available on your report for upto ten years after you clear it.
• If you jointly hold an account for a credit card or a loan, bad credit on that account will not show in your records. This is also false because by being a joint account holder you are equally responsible for that account

What to do if your credit card application has been refused.

If your credit card application is denied, the first thing to do is to find out the exact reasons for the denial. Once you know the reasons, verify them from the proper channels to ensure that they are indeed correct. If you have been denied a credit card due to a report sent by the credit bureau, you are legally authorised to obtain the report from the credit bureau free of cost. Note that these reports are often know to have errors. If your report has an error, get it corrected from the credit bureau and re-apply for your credit card.

If your credit card application is denied twice by two separate agencies, it is best to wait at least for six months before applying again. During this period try and improve your credit rating before reapplying.

Reasons why a Credit Card Application may be rejected

• Minimum income requirements not met
• Due to the report supplied by the credit bureau
• You have not been a resident of the location long enough
• You have not been employed in present job long enough

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