Credit Card Application
Credit Card Application – Credit cards can be a powerful temptation. We live in a society where immediate satisfaction is normal, acceptable, expected. We are constantly put in front of beautiful and happy people on TV and in print ads having fun, laughing, flirting, not caring about the rest of the world, as if they have no problems, as if they have every material thing they want, as if did not have monthly receipts.
It reminds us a bit of the old cigarette commercials, right? They encouraged smoking, until we learned about the deadly diseases associated with smoking. Media images and catchphrases can be stormy and misleading. The lesser evil is that they are pure fantasies, dreams of paradise. Worse, they are deceptive fascinations and can be dangerous to your financial health and peace of mind. Let’s think about the most common catchphrases from some of the major credit card companies. Let’s think about the most common tag lines for some of the top credit card companies.
- MasterCard: “There are some things that money cannot buy – everything else is there, MasterCard.”
- Visa: “Wherever, whenever, whatever. Visa.”
- American Express: “Members Receive Their Reward.”
- Discover Card: “You pay to discover.”
- Diners Club International: “Do you have the key that opens doors around the world? The card is the key. “
Now consider the banks that offer these credit cards.
The fact is that it is your fiscal responsibility to have one or two general credit cards to help you establish good credit, in case of some unexpected emergency and to pay for certain things that can only be paid with a credit card instead of cash. , like car rentals and airline tickets. Maybe even a card from a store where you shop regularly. But you don’t need more. Credit Card Application.
Having more than 2 or 3 credit cards can be detrimental to your financial health.
- It is difficult to keep track of all the dates and grace periods of each of the credit cards.
- If you carry too many cards, you have too many temptations to spend.
- The more credit cards you have, even those with no outstanding balance, the more you are considered a risk to future lenders. Just because you don’t have an outstanding balance right now doesn’t mean that you always will. In fact, what characterizes credit cards is that if you have an active account, you will eventually start to accumulate an outstanding balance. Lenders know. That is why they worry when you have many active accounts. Lenders want to feel confident that you can keep your monthly payments under control. If you have many active credit card accounts, their payments may not be your priority. It can also mean that you are a person who likes to use plastic too much.
Credit and Divorce: Know the Statistics
During the course of a marriage, a couple can acquire joint credit. This usually happens because when you combine your credit and that of your spouse, it can help you to have a superior support in case you want to ask for a mortgage loan. Or you can authorize your spouse to use one of your credit cards. Here are the risks:
- Individual Accounts: If you open an individual account and authorize your spouse to use it, the credit activity, if reported, will be on both credit reports. However, the authorized user is not legally obligated to pay the debt. (This can become a problem if you get divorced, and your ex-spouse charges purchases on your credit card.) Remember that the authorized user is not required to pay the debt.
- Joint Accounts: However, with joint credit, you and your spouse are responsible for paying the debts. Also, your history and anything else related to your joint card activity, if reported, will show up on both credit reports.
- Important: If it has been decided by a court order that your ex-spouse is responsible for paying the debt on the joint account, be it debit cards, home loans, car loans, etc., if your ex-spouse / a does not pay it, the lender can legally demand payment. This will also hurt your credit report.
What do you do to avoid this disaster?
First, make a copy of your credit report to find out exactly what you owe. You and your ex-spouse may have shared the same credit history without knowing it. Then, once you’ve identified your debt, you want to make sure it doesn’t get worse for either of you by adding new charges.