Common Credit Card Questions
Below is a list of the top questions on credit cards that we receive on the CompareCards.com website:
FAQ on Balance Transfer Credit Cards:
- Q1. How do you transfer credit card balance to another card?
- Card companies send out lots of credit card transfer offers as a way to attract new customers. Transferring high-interest credit card debt to a less costly card is a great way to save money. You can do a transfer to another card over the phone, online, or by using a special check provided by your card company for that purpose.
- Q2. Are balance transfers bad for your credit?
- If you receive a credit card transfer offer in the mail or online, that’s usually a good thing. Balance transfers to other credit cards card can help you switch from higher-interest rate card balances to lower interest rate balance transfer cards can save money on interest, thereby making it easier to reduce balances owed on credit lines. Generally speaking this is not bad for your credit, and if you pay down the transferred balance faster while saving money with a 0 transfer credit card this process can actually help boost your credit score. When paying down balances it’s worthwhile to note that you should also try to use only 30% of the available credit line offered to you.
- Q3. What are balance transfer cards with no transfer fee?
- No balance transfer fee credit cards are those that let you transfer balances from other credit cards without paying an extra charge for the balance transfer transaction. Many card companies will charge a fee of around 3% of the total amount transferred, for example, or they’ll charge a minimum fixed amount. Those kinds of fees apply each time you do a transfer. So it pays to compare balance transfer credit cards and credit card transfer offers. Try to use no balance transfer fee credit cards if you can find them, because the savings can be a significant amount of money that you can apply toward paying down your card balances.
- Q4. How is balance transfer interest charged?
- If you receive credit card transfer offers the key thing to look for is a low-interest or, better still, a 0% balance transfer credit card. Balance transfer interest can be either a 0% promotional apr rate or it can be the rate charged at your regular interest rate (e.g. 13.99%). It’s important to note what your balance transfer interest rate is before performing any balance transfers. That’s because the balance transfer interest is normally charged as soon as the funds are transferred. Balance transfer interest is normally calculated as your interest rate (e.g. 0% or 13.99%) multiplied by your balance on the account, divided by 12 months or the annual period.
- Q5. What are balance transfer cards for fair credit?
- Balance transfer credit cards typically offer the best possible transfer rates to people with superior credit, so excellent credit is often required to qualify for a 0% balance transfer credit card. But if you only have fair credit you'll likely still qualify for a low transfer rate, somewhere below 5%. Some companies may offer their best 0% rate however for a shorter period of time such as six months instead of 12 months. After paying off expensive balances look for opportunities to raise your credit line. That way you may soon be able to qualify for a long-term 0% balance transfer credit card.
FAQ on 0% Low Interest Cards
- Q1. Which low interest cards have no annual fee?
- There are many credit card issuers that extend interest free credit card offers, including those that do not require an annual fee. Some of the best low interest credit cards without an annual fee are Capital One Venture, Chase Slate, Citi Simplicity, Discover More, and the Citi Diamond preferred. All of these currently offer 0 APR introductory rates with no annual fee.
- Q2. What are the best low interest credit cards for teachers?
- The best low interest cards for teacher are those that have no annual fee. Many of the best cards for educators are issued by teaching profession credit unions. The best way to find teacher credit unions is to perform a search in online search engine as many of these are offered on a regional basis. Teacher credit unions tend to offer features like low rates, no annual fees and rewards programs. With no annual fee you can get a Visa card with the ScoreCard rewards program, for instance, and earn one rewards point for every dollar you spend. Redeem rewards for travel, merchandise, and products and services especially tailored to educators – with no limits on how much you can earn and no travel restrictions like blackout dates.
- Q3. What are the best low interest credit cards for nurses?
- Nurses can save by carrying low interest credit cards that don’t charge an annual fee. Examples of great cards that meet these criteria are the Capital One Venture, Citi Simplicity, and Discover More. But the American Nursing Association (ANA) also has a partnership with GE Money to provide an attractive credit card offer to nurses that includes a rewards program. Earn points and redeem them for benefits that include such things as payment of your ANA membership fee. Other great nurse association credit cards are the National Student Nurses Association Card, the Registered Nurse Card, the Nursing WorldPoints Card, and the Oncology Nurses Society Card.
- Q4. What are the best low interest credit cards for college students?
- Students should look for the best low interest credit cards that are specifically geared toward college kids. Discover Card offers some excellent ones such as the Student Clear Card, Mix Tape Student Card, and Student Tropical Beach Card.
- Q5. What are fixed low interest credit cards?
- A fixed low interest card is one with an affordable rate that doesn’t change over time. But almost all credit cards issued today come with a variable interest rate. You can still find many, however, that have a fixed rate for a limited number of months. The best low interest credit cards with this option are those that extend zero interest credit card offers to new customers. The next best option is cards with fixed rates that are under 5%. Introductory rates offered by card companies are normally fixed for anywhere from 3-18 months, and the longer the rate is fixed, the better.
FAQ on Business Credit Cards
- Q1. What are instant approval business credit cards?
- This refers to business credit card offers that let authorized company officers apply online and find out within a matter of minutes whether or not their application was approved. To find out if the new business credit cards you are interested in provide instant approval just visit the card company’s website.
- Q2. Which business credit cards use EIN only?
- Companies like Home Depot, Lowe’s, and Staples often issue cards based only on your Employer Identification Number (EIN) without asking for your social security number. Occasionally banks will also do this if you have a business account with them and a good banking relationship. First compare business credit cards to find ones that will accept the EIN. Then choose ones with the best rates and most flexible features.
- Q3. Can I apply for a business credit card without a social security number?
- Almost all card issuers require a social security number when you apply for any new business credit cards. Some stores that issue in-store charge cards (i.e. Home Depot or Staples) waive this requirement, however, if you provide a valid Employer Identification Number (EIN).
- Q4. Are business credit cards attached to my personal credit?
- Anyone who gives their social security number on a credit card application will be held liable for charges and responsible for payments. All full-fledged credit cards require that anyone requesting new business credit cards provide their social security number. So virtually all business credit cards issued today are attached to the applicant’s own personal credit.
- Q5. Can business credit cards be used for personal use?
- If you compare business credit cards to personal credit cards, the main difference is that business cards simply offer more features that are geared toward business owners. But if you carry a business credit card how you use it is entirely up to you. If you want to keep business and personal expenses separated for legal or tax accounting reasons, however, you should never make personal purchases on a business credit card. In the event that you do that personal expense should be fully reimbursed to the business.
- Q6. What business credit cards have no personal guarantee?
- There are virtually no business credit card offers that do not require some kind of personal guarantee. The officer of the company applying for the business credit card is required to provide a social security number or EIN and is responsible for repaying any charges to the card.
FAQ on Rewards Credit Cards
- Q1. Which rewards credit cards can help with groceries?
- Some cash rewards credit cards that let you earn bonus points in specific categories of purchases. So choose one that lets you earn business credit cards. Double or triple cash-back for groceries, for example, will save you 2-3 percent for every dollar you spend.
- Q2. What are the best rewards credit cards for students?
- Choose a rewards card that is designed specifically for students and offers extra rewards or cash back in categories of purchases that are popular with students like gas or restaurants. Solid choices include, for example, the Discover Open Road for Students and Discover Student Clear Card.
- Q3. What are the best rewards credit cards according to Consumer Reports?
- Consumer Reports advises that you’ll receive the best credit cards rewards from companies that don’t put restrictions on the rewards you earn and also don’t have expensive annual fees. Among Consumer Reports’ top picks for rewards card are the Chase Freedom, American Express Blue Cash Back, and American Express Fidelity. But they also suggest that each consumer do a credit card rewards comparison to determine which card best matches their particular spending patterns. For those who shop at Amazon.com, for example, Consumer Reports recommends the Amazon.com Rewards Visa card.
- Q4. What are the best travel rewards credit cards?
- The best travel rewards credit card is one that allows cardholders to earn unlimited rewards that don’t expire and are not subject to reservation restrictions such as blackout dates. The Southwest Rapid Rewards Credit Card is an excellent choice, and card members earn 3,000 bonus points every year. The Capital One Venture Rewards and the Miles by Discover are also great travel rewards cards, and points earned with them can also be redeemed for travel on any airline.
- Q5. Which credit card offers best rewards points program?
- Consumers need to do a credit card rewards comparison based on their buying habits and preferences to determine exactly which rewards card is their best choice. For those who travel, two of the best credit cards rewards programs are Capital One Venture Rewards and Capital One VentureOne Rewards. The Venture Rewards card awards 1.25 miles for every dollar spent, with no annual fee. The VentureOne card charges a $59 annual fee but waives the fee in the first year of membership, and with it you earn 2 miles per dollar spent. Meanwhile the Discover More and Chase Freedom cards are excellent cash-back rewards card with no annual fee and the chance to earn bonus rewards in certain categories of purchases.
FAQ on Cash Back Credit Cards
- Q1. What's the difference between cash back cards vs reward cards?
- When you compare cash back credit cards with rewards cards, the main distinction is that cash back cards give you cash credits when you make purchases. Most cash back credit offers let you redeem the credits for actual cash or gift cards, or you can apply them directly to your credit card bill to pay off your balance. Reward cards, by contrast, give non-cash perks such as free airline tickets or hotel stays.
- Q2. Are cash back credit cards taxable?
- Technically speaking, the credits you earn through cash back credit card offers are only taxable if you receive them in cash that is recorded as part of your annual income. If you get a cash back check from a credit card company, for example, and deposit it into your bank account then it will show up as taxable income on your bank statement. But all tax related questions should be answered by a qualified tax professional. So if you are not sure about cash back earned on a credit card always consult your tax planner.
- Q3. What's the best cash back credit card?
- Compare cash back credit cards based on your individual spending habits to ensure the best match. For people who frequently shop at Costco, for example, the True Earnings American Express Card may be a good choice. But generally speaking, the best cash back credit card offers are those that offer generous ways to earn cash and have no annual fee. Some of the top cash back credit cards for all-purpose spending are the Citi Dividend Platinum Select, the Chase Freedom, and the Discover More credit card.
FAQ on Student Credit Cards
- Q1. What are the best student cards for someone with no credit history?
- Students with no credit history can apply for a prepaid card because these do not require a credit check. The most affordable is the American Express Prepaid Card, and it also offers a program to help build credit and graduate to the American Express Charge Card. But there are also full-fledged credit cards designed to help students who have no credit. One of the best student credit card offers for those with no credit history is the Journey Student Rewards Card from Capital One. Using the card automatically creates a credit history track record. Each month that a student repays the Journey Card on time they also qualify for a cash back bonus.
- Q2. What are the best student credit cards for someone with no income?
- The best cards for those with no income are prepaid instant approval student credit cards. But it is important to select one that does not charge excessive fees. The American Express Prepaid Card is currently the most affordable prepaid card, because it has almost no fees. Another option is to apply for a card and have a parent cosign for it. Since their income and credit will be evaluated that improves the chances of having the card application approved despite the fact that you have no income.
- Q3. What are the best student credit cards for someone with bad credit?
- Those looking for student credit cards with bad credit may want to apply for prepaid credit cards. Most of these are instant approval student credit cards available to everyone, regardless of their credit history. There is no credit check required, there are no late fees or overdraft penalties, and you can find prepaid cards that are honored wherever major credit cards like Visa and MasterCard are accepted.
- Q4. Can I get a student credit card with no cosigner?
- Because of recent federal legislation the only student credit card offers available to minors without a cosigner are those for students who demonstrate enough financial stability to repay their credit card debts. But there are some good cards available. The Citi Dividend Platinum Select Card for College Students is, for example, an excellent student card with no cosigner required.
- Q5. How do student credit cards work?
- Student credit cards work just like other credit cards, except that they offer tools and benefits that are especially designed to appeal to students and meet their unique financial needs. To determine which card is best, compare student credit cards based on features such as online account management tools, rewards programs, and cash back opportunities. Also check to see if the card requires an annual fee and if the APR is competitively priced.
FAQ on Airline Credit Cards
- Q1. Are there airline cards for bad credit?
- Virtually all air mile credit cards, the kind that let cardholders earn travel rewards, require at least decent credit. There are some cards specifically geared toward people with bad credit, however, and by responsibly using one of those it is possible to repair one’s credit history. The American Express Prepaid credit card, for instance, has a special program to help people do that. By achieving a good credit rating with that type of card you can become eligible for an airline rewards card.
- Q2. What are the best airline credit cards promotions?
- The Southwest Airlines Rapid Rewards Plus card gives new cardholders a free ticket just for signing up, which is one of the best credit card airline rewards. There are also promotions from Citi Platinum Select AAdvantage World MasterCard and Delta Airlines Gold Delta SkyMiles that award up to 30,000 bonus miles to new members. Meanwhile the Citi ThankYou Rewards Card is great for earning points that can be applied to air travel, and it comes with a generous 15-month 0% introductory rate.
- Q3. Do airline credit cards offer companion tickets?
- Yes, many airline credit cards, including those from Visa, American Express, and MasterCard, offer companion tickets. Credit card airline rewards including complimentary companion tickets are also offered by almost all major airlines including Delta, U.S. Air, and many others. To find out if a particular credit card extends this kind of offer just review the details of their rewards program promotions.
- Q4. Do airline credit cards offer free bags?
- Many credit card airline rewards programs include free bags as one of their benefits. Review the details of the credit card’s promotion to learn whether free baggage is included. Two prominent air mile credit cards that offer this feature, for example, are the Southwest Airlines Rapid Rewards Plus Card and theDelta Airlines Gold Delta SkyMiles Card.
- Q5. Which are the best airline credit cards for good credit?
- The best airline credit cards for those who have good credit are ones that offer a robust rewards program with the potential to earn unlimited miles with no expiration dates or travel restrictions. The top credit cards let you use the miles on any airline without blackout dates, for example, and offer generous sign-up bonuses. Money Magazine ranked the Capital One Venture Rewards as one of the best airline miles credit cards, and the Capital One VentureOne is another highly rated airline rewards card. Two American Express cards, the Gold Card and the Delta Reserve, are among the best airline credit cards in terms of valuable luxury perks. But their annual fees are extremely high. The Discover Escape is an excellent alternative with a reasonable $60 annual fee, and the Miles by Discover Card is another great airline credit card with no annual fee.
- Q6. Which are the best airline credit cards for bad credit?
- Virtually all airline credit card offers that include a travel miles reward program require at least average credit. But consumers with poor credit can get a prepaid card or one designed for people with bad credit. They can then use it to gradually repair their credit so that they can successfully apply for the best airline credit cards.
FAQ on Gas Credit Cards
- Q1. Which gas credit cards are good for business?
- The best gas credit cards for business are those that offer double rewards earned for each dollar spent on gas, such as the Chase Ink Classic and the American Express OPEN Business Gold Rewards Card. The Capital One Sparks Cash for Business Card is another great choice for businesses wanting to save money withgas station credit cards.
- Q2. Are there gas credit cards for people with no credit?
- People with no credit or bad credit can apply for gas rebate cards, and gas cards typically have lenient credit application standards. Companies like BP and Exxon sometimes award cards to applicants with bad credit, for instance, and Discover Card offers secured or unsecured gas credit cards for people with average, bad, or no credit. First shop around and compare credit cards. Then apply only for those with a reputation for issuing cards to consumers with no credit, because submitting multiple requests for credit can potentially damage your credit score.
- Q3. What are secured gas credit cards?
- Secured gas credit cards or gas rebate credit cards are those that require a cash deposit into the cardholder’s account. Gas can then be purchased against the cash in the account. When the credit is depleted the cardholder can recharge the card by depositing additional funds. Secured gas cards are an excellent choice for people with bad credit who have been turned down for unsecured credit cards.
- Q4. Which gas credit cards have the best rewards?
- The Discover Open Road Card is one of the best gas credit cards with no annual fee, and there is also a Discover Open Road Card for Students. For those who buy gas at Costco, the Costco True Earnings Card from American Express is a smart choice. Meanwhile the Chase Freedom Card has no annual fee, generous bonuses, and is an excellent all-purpose rewards card also good for saving money on gas.
FAQ on Prepaid Debit Cards
- Q1. Can I use a prepaid debit card with Paypal?
- Yes, you can use a prepaid debit card with PayPal. In fact, there is a PayPal Prepaid MasterCard which is one of the most popular prepaid credit cards to build credit. The PayPal Prepaid card has an optional savings account feature, online financial management tools, and gives rewards for specific kinds of purchases. But you can use prepaid debit cards with PayPal even if they are issued by other credit card companies not affiliated with PayPal.
- Q2. Can I use a prepaid debit card at Walmart?
- Yes, you can use any prepaid debit card at all Walmart stores. Walmart also sells its own MasterCard and Visa prepaid cards. The Walmart Money Card is one of the best prepaid credit cards since it is available at Walmart stores worldwide and charges very reasonable fees.
- Q3. Can I use a prepaid debit card to pay loans?
- Prepaid debit cards can be used to repay loans, as long as there is sufficient credit on the card to cover the loan payment. One of the best ways to do this is by using the convenient online bill paying features that many prepaid cards offer. But to avoid unwanted charges it is important to use prepaid credit cards with no fees imposed for those types of payment transactions.
- Q4. Where can I find prepaid debit card reviews?
- There are many places to compare prepaid credit cards and read expert reviews. Some of the best prepaid credit card summaries are published by Consumer Reports, for example, and in financial magazines like Money and Kiplinger’s. But there are also extensive reviews on websites such as CompareCards.com that you can read for free. You will also find recommendations on those sites for prepaid credit cards with no fees or more affordable terms.
- Q5. Where can I purchase a prepaid debit card?
- Prepaid debit cards from companies including MasterCard and Visa are widely available for purchase online and at retail locations worldwide. You can buy them at many convenience stores, for example, and also at Walmart. American Express also offers one of the best prepaid credit cards to build credit and it can be bought online or at participating retail locations.
- Q6. Can I rent a car with a prepaid debit card?
- Consumers often use prepaid credit cards to build credit until they are eligible for a conventional credit card, and they want to know if they can use a prepaid card at car rental agencies. It all depends upon the policy of the particular rental agency and upon what kind of prepaid card is used. Some rental companies do not accept cards they know are prepaid. But with some prepaid cards the merchant cannot tell whether it is a prepaid or not because the card does not have a bank identification number (BIN). Each rental company has its own policy, and prepaid debit cards may or may not include a BIN. So if you plan to use a prepaid debit card to rent a car the best thing to do is to inquire in advance to find out if that is permitted by the rental agency.