Credit Cards

You can complete a credit card application in several ways: online, on a paper application, or on the phone. Applying for a credit card online is convenient and you can get a decision almost immediately. Be prepared with personal details like your date of birth and social security number; details on income and housing costs; and information on any authorized users you want to add to the account.

Credit card approval can often be obtained instantly online but getting the plastic in your hands is another matter. If you are in a particular hurry many issuers can ship your card for overnight delivery, but at a significant cost. Otherwise it generally takes 3 - 10 business days to get your new credit card through the U.S. mail.

Credit card issuers determine each cardholder’s credit limit based on many factors, the most important of which is the customer’s credit score. Other factors typically include employment status, income level and debt to income ratio. Whether credit limits are a set dollar amount or are dynamic, i.e. not pre-set, the creditworthiness of the borrower is the most important consideration for lenders in determining how much credit to extend.

Very often it is quite possible to lower the interest rate on your credit card account if you contact your card issuer’s customer service department with the request.  Your account must be in good standing to be eligible for an interest rate adjustment, however, which means you have not been late with previous payments or exceeded your credit limit.

Merchant interchange fees, also known as swipe fees, tend to average around 2% of the transaction amount but can be as high as 2.5% for online or card-not-present transactions. Merchants often pass these fees along to their customers in the form of higher prices.

Credit card disputes typically arise when consumers unsuccessfully attempt to get a refund from a merchant for unwanted or defective merchandise or they notice an unauthorized charge on their credit card statement.  In these cases the customer should contact their card issuer to dispute a charge either online or by calling the toll-free number on the back of their card.