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Credit Card Applications: Are They Free?

If you need to apply for a credit card but are worried that you won’t get it, then you’re in luck. Unfortunately, you will have to pay an application fee. In order to make an application you have to spend some time in the website of the company you’re applying for. Thus, it’s still possible that you’ll get a card you want. However, there are many drawbacks to getting a card with no credit limit.

The biggest drawback here is you pay your balance in full each month. In the early days of the Internet, when credit cards were relatively unknown, you could not get the corresponding credit card from a given issuer. Your average American college degree doesn’t teach you the value of credit. Therefore, you will have to pay an application fee in order to get a credit card. Yes, you will be paying an APR of 1.5%. However, you also pay a portion of the bill each month. Thus, you actually pay for using your credit card, which is high!

Two other negatives of getting a credit card with a credit limit are:

You pay an annual fee. This is a small fee, but not worth it if you can pay off that annual fee by the end of the grace period. You can get the card for $50, but if the card doesn’t have an annual fee, then you pay 14% interest and penalty late fees. The interest penalty fees cover late charges, annual fees, and other charges that are unavoidable if you use the card every month.

So whether you get or receive a credit card is up to you! Don’t rely just because you are told there are no credit limits on your credit card. You have to choose wisely, and that means choosing your card wisely and with care. Don’t rely just because you qualify for a credit card.

Do your homework!

Copyright – Jeanette J.

Credit Card Statistics

According to the Fair, Isaac & Company (FICO) study “Consumer FICO (Consumer Market Operations Estimate) has consistently shown the following:
The following is a 45-day moving average;
The 12-day moving average is a multiple of the 30-day moving average;
The fixed-variable rate (the rate of rate of change of the Treasury note rate;
Fixed-Visa’Monthly Rate’Monthly Short-term Rate’Variable Rate;
Short-term Rate with Return on Equity Fundamentals or Cash Return on Equity’Low rate with rising interest rate;
Rate-Adjusted Short-term Rate’Fixed Rate’Fixed Fixed-Rate or Short-term Rate’ variable;
Balance-Transfer Rates are one measure of consumer credit;
Credit card transactions are a major contributor to consumer credit;
Overlaying APR’Default Fee’Cost of Financing can create a ‘revolving debt’ effect. Default requirements can quickly become ‘revolving loans’;
Unpaid credit balances can create a significant credit card debt;
Credit cards that require high limits on purchases have lower credit score and therefore lower earnings potential than cards without limits on purchases;
A heavy premium is charged for high finance charges, annual fees, late fees, penalty fees and default fees.

The following facts were included in a consumer research report that analyzed the three financial services companies:

1) Experian (http://www.experian.com) http://www.annualcreditreport.com For the study, the study was categorized into three age groups: 18 to 34-years-old (18-49 year olds), (Experian) 18-54 year olds, and 55 and over (54+ years olds).

The basic formula used in all analyses (the two-stage model) was:

The total number of credit card inquiries (consumer-reporting credit score + income) was calculated using the most recent data available from each of the national Equifax (http://www.equifax.com) and Experian (http://www.experian.com). This is the data used in the most recent Equifax Equifax Student Credit Score Score Request, issued on March 16, 2005, by the ECR scoring system.

Average number of outstanding credit card inquiries was calculated using the most recent data available from the following sources:

* FICO Total Credit Scores (http://www.fico.com) http://www.annualcreditscore.com

The most recent available data for each of the three consumer reporting credit scores is:

* FICO Total Credit Scores (http://www.fico.com) http://www.