Credit cards are unstructured debt accounts linked to a plastic card that allows the holder to make purchases from retailers that accept the card. Common credit card networks in the U.S. include Visa, MasterCard, Discover, and American Express.
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5answers
2k views
How do credit card companies make profit?
How do credit card companies make profit by giving us credit for 40-50 days (India). I purchase something on my credit card and I pay it to the credit card company after some days. How are they going ...
8
votes
2answers
187 views
What is the optimal ratio of used credit to credit limit for your credit score?
I have been told to never go over 50% of my credit limit on any credit card even if I pay always off in full for each statement, in order not to hurt my credit score. Is this true? What is the ratio ...
11
votes
4answers
442 views
I've often heard of the “snowball” method for paying off credit card debt. How does it work?
How does the "snowball" method of paying off credit card debt work? In what ways is it superior over other ways of reducing one's debt?
11
votes
6answers
18k views
Can I open a US bank account even if I don't live in the country?
I'm Swedish, but living in Switzerland at the moment. Can I open a US bank account? Either when in the US on vacation or through the internet/phone?
Lots of situations when I find myself in need of ...
14
votes
9answers
465 views
Do I even need credit cards?
I'm 24, and so far I've been able to live without credit cards of any kind. My wife calls this "If we can't pay for it right now, we don't need it." Obviously this does not apply to our car and our ...
11
votes
2answers
557 views
Can a merchant charge you more in the US if you want to use a credit card?
I'm pretty sure the answer is no for Visa/MC and basically no for Amex, and it's actually illegal in some states, but what if they just rephrase it as "We're giving you a discount if you choose to pay ...
7
votes
4answers
400 views
Is it OK to use a credit card on zero-interest to pay some other credit cards with higher-interest?
I was reading up on
What is the difference between "good debt" vs. "bad debt"? and it says borrowing money from a credit card is a bad-debt.
So, I was wondering if the credit card ...
12
votes
3answers
367 views
Should I keep a credit card open to maintain my credit score?
I have a credit card that was opened when I first got ot of college, and was my first credit card. Since then, I have switched to cards with rewards, figuring that since I pay it in full each month, ...
8
votes
3answers
792 views
What to do with expired cards (credit, debit, insurance cards, …)
I wonder if it is safe to throw away expired cards (credit cards, debit cards, health insurance cards) with name and card/account/ID number as trash. Even if other people have them, will they be able ...
8
votes
5answers
295 views
How many credit cards do I need? Should I open another just for the cash back feature?
I just got a mailer from Discover offering a new card, with 5% back on some items and 1% back on everything else. However, I already have a Visa which I have had for a few years.
Does it make any ...
6
votes
2answers
218 views
Are travel point / reward credit cards worth the hassle and cost?
Are travel point / reward credit cards worth the hassle and cost? Many such cards have fees, and when you try to book there are often restrictions. What has your experience been with these types of ...
5
votes
5answers
190 views
What to do when institutions stopped lending you money?
I know the question seems confusing, but this is a real life event. My friend lived beyond his means for a few years, combined with half year of unemployment his Credit Card Debt went to the roof. ...
3
votes
2answers
109 views
What kind of an impact does moving have on your credit (score)?
Being an international student, the room I rent near campus has been my domestic home address since I came here to study.
Now that I am working at a place quite far from campus, I would like to ...
3
votes
2answers
275 views
How bad would maxing out my credit card once a year affect my score
I just got approved for a $1500 cash secured credit card from Wells Fargo.
This means I have no credit history whatsoever, and am going to use this card to establish one.
With fall semester at ...
3
votes
3answers
154 views
Credit card grace period for pay, wait 1 day, charge?
Does a credit card grace period apply in this situation:
March 1: I charge $1000 to my card.
March 8: My billing cycle ends (ie, this my card's closing
date). My due date is March 28th.
March 9: ...
47
votes
14answers
11k views
How can Americans get a chip-and-pin credit card for use while abroad?
Background:
US banks, without exception, issue credit cards with magnetic stripes. In Europe, though, almost all credit cards also have a chip and require a PIN.
Most merchants in Europe don't mind ...
27
votes
5answers
2k views
Pay online: credit card or debit card?
I have a credit card and a debit card. I could use both to pay online. Credit card is only a bit less convenient since I have to transfer the money back in the credit card account later.
Is it safer ...
12
votes
8answers
380 views
Relocated to USA. How to get credit card without existing credit history / score?
I recently relocated to USA and have no Credit Score.
Is Secure Credit Card is the only option for me to start building my credit score?
Also please recommend which other credit cards are available ...
10
votes
4answers
382 views
What are cheap ways to accept small amounts of money (micropayments) on my web site?
I need to receive money from users from my webpage. They will only pay very small amounts, i.e. $1 max, but the total will probably go up to $10,000.00. What is the best way to receive this money ...
15
votes
4answers
995 views
Is a high credit limit on a credit card bad?
I've had a credit card for a long time, and every so often they've sent letters telling me they're increasing my available credit. Does it negatively affect my credit score to have a high limit, one ...
10
votes
4answers
2k views
How are Visa payWave and MasterCard PayPass protected against unauthorized use?
Visa payWave and MasterCard PayPass have similar description - the card is equipped with antenna that it uses to talk to the terminal. For small purchases (something like less that $50) the ...
8
votes
2answers
737 views
Credit card interest calculator with grace period & different interest rate calculation methods?
Is there an (ideally online) credit card interest calculator that
includes grace periods and lets you choose the interest calculation
method (eg, "adjusted balance", "average daily balance", ...
9
votes
6answers
4k views
Why do some online stores not ask for the 3-digit code on the back of my credit card?
How is it that some e-commerce stores are able to process credit card transactions without getting the 3 (or 4-) -digit security code from the back of my credit card?
What value does this code add if ...
9
votes
7answers
565 views
Will be debt Free in 3 years — What order should i pay off my cards?
I have budgeted to the point where i can close all credit cards i have in close to three years from now.
My question is, should I simply pay 1/3 to each card (will be over minimum payment on all)
OR ...
9
votes
8answers
256 views
How many credit cards is it reasonable to have?
Is there a right number of credit cards to hold? (Please don't say zero :) What would be the excessive number of credit cards, or how else would you judge enough is enough? If I have some cards I do ...
9
votes
8answers
4k views
PayPal wants me to “add a bank account”, another funding source. Credit card isn't working. Why?
This is the second time in the last couple of weeks that I'm seeing the following error from PayPal. (Note: I've deliberately hidden the name of the merchant at the top.)
"You cannot use this ...
4
votes
1answer
224 views
How do credit card companies track your purchase categories?
I've seen a few responses scattered on the internet that attempt to answer this but they seem to disagree on the matter.
When dealing with cash-back credit cards, they offer different percentages for ...
3
votes
5answers
118 views
Is the no surcharge rule universal with regard to credit card purchases?
I am referring to this question. My situation is similar, except that I am in Malaysia rather than US.
In US it is understood that
it's part of their merchant agreement
that they can not ...
14
votes
5answers
253 views
What strategies could be employed so as to avoid identity theft and credit card frauds?
Other than getting a credit card with a minimal limit and using it exclusively for online purchases, what other strategies could be employed so as to avoid identity theft and credit card frauds?
13
votes
4answers
2k views
What does it mean to run my debit card as credit?
I've been advised to (and have been) running my normal debit card transactions as "credit" transactions. What does this mean in terms of my security, the time a charge takes to settle, and the fees ...
8
votes
1answer
175 views
Effect of going over the credit limit on a credit card to your credit score?
If I have a credit card balance that is over the credit limit, and I don't go under within 30-days, the provider will report the overage to the reporting agencies. If you have generally good credit ...
8
votes
3answers
505 views
Which reward / benefits credit card is the best value for the money in Canada?
Which card do you use and why? Some cards are similar but some not. This will also be affected by personal preference, so indicate why you chose a certain card vs. another e.g. if you like to travel ...
7
votes
3answers
360 views
Is interest of credit cards caculated based on the amount unpaid within the grace period?
From Wikipedia
if a user had a $1,000 transaction and repaid it in full within this
grace period, there would be no interest charged. If, however, even
$1.00 of the total amount remained ...
7
votes
4answers
184 views
Is there a downside to asking for a credit increase?
I have a $500 limit, and probably below average credit history. Is there a downside to asking for a credit increase?
6
votes
4answers
571 views
Are the new “Smart” or “Chip” Credit Cards better from a security standpoint?
The new Chip credit cards are being introduced to provide better security to consumers, merchants and credit card vendors.
Sample Card:
Card Reader & PIN Entry:
Are they really better ...
6
votes
2answers
172 views
Are there advantages to getting a “secured” credit card, if you have poor credit?
I've heard about "secured" credit cards - where you basically pre-pay the amount of your "credit card" limit - surely your use of this type of card is evident on your credit report, and the advantage ...
5
votes
4answers
347 views
how do i get an out-of-state billing address for a credit card?
When I buy virtual items online that do not need to be shipped, sales tax is often calculated by the merchant automatically based on my credit card billing address. My billing address is in ...
5
votes
5answers
385 views
Should credit card payments be broken up into amounts smaller than $10K?
As mentioned in this answer about bank transaction reporting, a Cash Transaction Report (CTR) will be generated for deposits (or all transactions?) greater than $10K.
So, there are two parts to this ...
4
votes
3answers
102 views
How can I use my low credit card rate to save interest on my student loan payments?
I have student loans at a rate of 6.55%. I have zero credit card debt - and have a card with a rate of 6%. I have a comfortable amount saved for emergencies and have some extra income that can go ...
4
votes
3answers
105 views
What proactive measures can be taken before or when a lender closes your credit card?
A blogger and contributor here recommended Digital Federal Credit Union (DCU) as a possible lender in my search for cash secured credit cards to establish my credit history, and I got approved for one ...
4
votes
4answers
1k views
How do credit card balances relate to getting a Mortgage?
My wife and I have been paying off debts since we got married about 3 years ago. We have about 15k left in credit card debt, 1 car loan, and 2 student loans (one is very negligible @ < 4.5k). The ...
4
votes
4answers
1k views
How to calculate credit card interest with respect to grace period transactions?
If my credit card currently has a $0 balance, and I make a transaction
and pay it back within 25 days, I won't pay any interest, even if I
had a balance and was paying interest previously. Is that ...
4
votes
2answers
92 views
Who checks my credit history when I apply for a credit card?
I'm guessing this may be how it works:
Card company > Some Company > Me
I can get a credit card from my bank or some company. Do those guys review my history? Or does the card company? Perhaps "Some ...
3
votes
2answers
110 views
Credit card payment date
I recently got my first credit card and after calling the bank, the lady on the phone was not able to clarify my questions (weird, huh?). Maybe you can help me understand the following scenario:
...
3
votes
2answers
198 views
Calculating the most optimal way to pay off credit cards
I have 3 credit cards which I am slowly paying them off.
Card# Balance Monthly Interest Months to pay of Minimum
Payment at current rate Payment
1 ...
3
votes
3answers
384 views
Why is my credit card not showing on my credit report?
I have just got my credit report. All seems fine, but I have noticed that there is no mention of my credit card on the report.
I only have one and it is with the same bank current account. I was a ...
2
votes
2answers
695 views
Is it a bad idea to have 3 secured credit card accounts open?
I initially signed up for a Wells Fargo cash secured credit card, last month, but lately with their changing the ToS and extra fee, I am worried about my choice.
People have asked me not to close ...
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vote
2answers
184 views
What is the average value of a credit card or debit card transaction?
There are a plethora of statistics regarding credit card usage but what I can't seem to find is the the value of the average credit card (or debit card) transaction.
Are such statistics provided by ...
1
vote
1answer
95 views
How to understand the caculation of interest for credit cards?
From Wikipedia
The general calculation formula most financial institutions use to
determine the amount of interest to be charged is APR/100 x ADB/365 x
number of days revolved. Take the annual ...
1
vote
1answer
97 views
Maximising total credit limit on credit cards
I am curious about the tactics that someone would use if they wanted to obtain the maximum possible total credit limit. I don't actually intent to do this, but I'm just curious about how much money ...
