How Long Do Credit Card Applications Stay On Credit Report?

If you've applied for a credit card, you might be wondering how long does the resulting hard inquiry from your credit card application stays on your credit report. We will answer this question in much detail below.

How Long Do Credit Card Applications Stay On Credit Report?

Credit card applications stay on your credit report for 24 months from the date that you submitted your credit application. After the 24 month period is over, the resulting hard inquiry will automatically be removed from your credit report. A hard inquiry from a credit card application will stop affecting your credit score within 12 months of submitting your application.

A hard inquiry is placed on your credit report whenever you submit a credit card application regardless of whether your application is approved or denied. A hard inquiry can lower your credit score by a few points, but so long as you make payments on all your accounts and avoid having anything negative added to your credit report, your credit score will quickly recover from a credit card application.

You should keep in mind that every credit card application you submit will result in a hard inquiry being added to your credit report. So, avoid submitting too many credit card applications within a short period of time. This is so because even though a single credit card application will lower your credit score by a few points, submitting too many within a short period of time can significantly lower it. Also, lenders don't like seeing too many hard inquiries on your credit report because it shows them that you're actively seeking too much credit.

How Many Points Can a Single Credit Card Application Lower Your Credit Score?

A single credit card application can lower your credit score by a few points. That said, the stronger your credit profile, the less of an impact there will be on your credit score. That said, it's common for a single credit application to lower your credit score by 3 to 5 points. That said, hard inquiries only make up 10% of your credit score, so they do not play a major role. Having said that, ideally, you should have no more than 2 to 3 hard inquiries on your credit report. If you have more than 3 hard inquiries, lenders may be hesitant to lend you money because it shows them that you're actively seeking credit, which is something that they do not like to see. So, keep your credit card applications to a minimum, and only apply for credit cards that you have a reasonable chance of being approved for.

If you know that you'll be applying for a mortgage in the foreseeable future, you should keep credit card applications and other credit applications to a minimum in order to have the highest credit score possible and for your credit report to look as clean as possible.

Things to Consider Before Submitting a Credit Card Application

You should consider the following factors before submitting a credit card application:

1. you should keep in mind that whether your application is approved or denied, a hard inquiry will be added to your credit report, so make sure that you're only applying for a credit card that you're reasonably certain you'll be approved for. There are many helpful sites on Google that will tell you the credit score requirements for the credit card you want to apply for, so review the requirements and compare them to where your credit score stands.

2. The better your credit score, the less of an impact submitting a credit card application will have on your credit score. If you have a low credit score and have too many hard inquiries, you could see a bigger drop in your credit score when submitting a credit card application.

3. Even though your credit score may drop a few points as a result of a credit card application, if you continue to make all of your payments on time, your credit score will quickly recover.

4. Review your credit report before applying. If your credit score is lower than what's required for the credit card you want, consider applying for a different card that caters to consumers with your credit score.

How Many Credit Card Applications Should You Submit?

As a rule of thumb, you should keep the hard inquiries that result from submitting credit card applications below three hard inquiries. Also, you should space out your credit card applications, leaving at least 90 days between submitting applications. If you submit an application and are denied, you should wait before submitting another application. Applying for a bunch of credit cards within a short period of time is a big no no and should be avoided. If you submit too many applications, lenders will view you as actively seeking too much credit, making them weary about whether to approve you. Additionally, you should space out applications so that the hard inquiries resulting from credit applications do not lower your credit score too much.

How Long Does a Credit Card Application Stay On Your Credit File?

As mentioned previously, a credit card application will stay on your credit file (credit report) for 2 years from the date you submitted your application and the lender reviewing your credit report. After the 2 year period, the resulting hard inquiry will automatically be removed from your credit report.

How To Improve Your Credit Score After Submitting a Credit Card Application?

If you want to improve your credit score after submitting a credit card application, you should make sure to make all of your credit card and loan payments on time. Missing a single payment could cause significant damage to your credit score. Additionally, you should lower the balances on your credit cards and loans. Your credit utilization accounts for 30% of your credit score, so paying down your cards and loans will improve your credit score. Furthermore, keeping old accounts open even though you barely use them is a good idea as your overall account age impacts your credit score. Moreover, you should limit the number of credit applications that you submit to keep hard inquiries at a minimum. Although a single hard inquiry can lower your credit score by a few points, having too many of them on your credit report within a short period of time can significantly lower your credit score. If you have any questions or comments, please feel free to leave them in the comments section below.


Is an Authorized User Responsible For Credit Card Debt?

If you're an authorized user on someone else's credit card account, you might be wondering are you, as an authorizer user, responsible for the credit card debt on the credit card? We will answer this question in much detail below.

Is An Authorized User Responsible For Credit Card Debt?

No, an authorized user is not responsible for credit card debt on a credit card. That said, merely because an authorized user is not responsible, does not mean that there are no consequences if the account goes unpaid. If the primary account holder does not make his payments on time, the delinquent payments will appear on both the authorized user's credit report and the primary account holder's credit report, significantly lowering both of their credit scores. So, only add yourself as an authorized user on another person's account if you know that they are responsible enough to make their payments on time and keep their credit utilization low.

An authorized user is like a guest on your credit card. They enjoy using your credit card, but they are not liable for making payments on the debt on the account. If the primary cardholder does not make his or her payments on time, the missed payment marks will be added to both the authorized user's account and the primary account holder's account.

The missed payments will show up on the authorized user's account because the account status is usually reported on both the primary account holder's credit report and authorized user's credit report, causing both the primary and authorized user's credit score to go down.

That said, although most card issuers report negative items onto an authorized user, not all do. For example, American Express does not report negative items on an authorized user's credit report. But, most financial institutions do report negative items onto an authorized user's credit report, so be careful whose account you add yourself onto.

If the primary account holder misses payments or racks up a lot of debt, utilizing too much of his or her available credit, your credit score could suffer.

How Does Being An Authorized User Work and How Does it Affect Your Credit?

Before a user can become an authorized user, a person (primary account holder to be) must apply for a credit card. After a person applies for account, his credit report and score will be reviewed. If he is creditworthy, his credit application will be approved. The primary account holder is responsible for making payments on the account. The primary account holder typically has the ability to add authorized users to his account. Authorized users can use a credit card just as the primary account holder can, but an authorized user is not responsible for paying the account.

That said, merely because an authorized user is not financially responsible for the account, this does not mean that he will not suffer consequences if the account is left unpaid. The primary account holder will be responsible for the debt, and the authorized user, although not responsible for repayment, will have a negative mark added to his credit report if the account is not paid on time because the account is likely to be reported on an authorized user's credit report, bringing down his credit score.

An authorized user is not liable for the debt on the account because the contractual agreement that stipulates payment is typically only between the financial institution issuing the credit card and the primary account holder. The authorized user is simply a guest on the account when it comes to repayment of debt.

Do All Credit Card Issuers Allow Authorized Users?

Most card issuers allow credit card account holders to add additional users on their accounts as authorized users. Authorized users are issued a credit card linked to the primary cardholder's account that shows the authorized user's name on the account. Authorized users are allowed to legally make purchases on the account without being held liable for the debt on the credit card. The primary account holder remains liable for any charges made to the card. As such, cardholders should be careful who they add as an authorized user because they are legally obligated for any transaction made on their credit card account by an authorized user. So, make sure you understand this before you add another person as an authorized user.

Here are some of the things that an authorized user can do after they're added onto your account as such:

  1. Make purchases of goods and services using the credit card that's issued to them at physical retail stores
  2. Make online purchases
  3. Add the credit card to their phone and utilize tap to pay
  4. Withdraw cash from ATMs as a cash advance on the credit card
  5. Remove themselves from the account at any time

Here are some of the things that authorized users are not permitted to do:

  1. Change the information on the account, including mail address and/or associated phone numbers
  2. Close the account
  3. Increase the credit limit of the credit card
  4. Add additional authorized users

Authorized User vs Joint Account Holder

You should determine whether you're an authorized user on an account or an account joint holder. This distinction is important because it determines whether you're liable for debt on the account. A joint account holder and a primary account holder are both liable for the debt on a credit card. This is so because they were both listed on applicants when they applied for a credit card. This means that there is an agreement between both parties to make payments on the account and so both are responsible for any debt on the credit card.

That said, an authorized user is different from a joint account holder because an authorized user is merely permitted to use the card and is not legally responsible for paying the debt on the card. If you were added to another person's account after they opened the account, you are an authorized user. However, if you applied for a new account with another person, you're a joint cardholder, meaning you're responsible for the debt on the credit card.

Frequently Asked Questions (FAQs)

1. Are authorized users responsible for the debt after death?

No, authorized users are not responsible for credit card on the account after the death of the primary account holder. Only the primary account holder and joint account holder (if any) are responsible for paying the debt on a credit card account.

2. Does making someone an authorized user hurt my credit?

No, making someone an authorized user does not hurt your credit.

3. Do authorized users get their own bill?

Most card issuers do not send an authorized user on a credit card a bill. This is so because only the primary account holder is liable for the debt on the account.

4. Do you need a social security number to add an authorized user?

Some card issuers and financial institutions require a social security number to issue a credit card to an authorized users, and others do not. So, it really depends on the financial institution you have your credit card with.

5. Does adding an authorized user result in a hard inquiry?

No, adding someone as an authorized user does not usually result in a hard inquiry.


Does a Credit Card Have a Routing Number?

If you're like many people out there, you might be wondering whether credit cards have a routing number? We will provide you with the answer to this question in much detail below.

Does a Credit Card Have a Routing Number?

No, credit cards do not have routing numbers. Routing numbers are only used for transferring funds between checking accounts, saving accounts, and investment accounts, they are not used for credit cards. Credit cards have account numbers that are typically 16 digit numbers found either on the front of your credit card or on the back of them. A credit card account number serves as the routing number and account number in a single number. Additionally, credit cards have security features that include the expiration date and a three-digit security code that's typically located on the bank of your credit card.

A routing number is a bank's electronic address and as mentioned previously, is only used for transfers between checking accounts, saving accounts, and investment accounts, it is not used for transfers between credit cards.

So, if you were wondering whether your Bank of America, Chase, Discover, Wells Fargo, Discover, or American cards have a routing number, they do not because they are not deposit accounts. Only deposit accounts have routing numbers to guide the transfer of money between two accounts.

The only situation that we can foresee where you will need a routing number for your credit card is when you're setting up your payment method for your credit card. When setting up the payment method by which to transfer funds from your checking account or savings account to your credit card, you may be asked for the routing number of your deposit account (checking or savings) so that you can transfer money from your deposit account to pay your credit card. That said, remember your credit card does not have a routing number.

What Are Routing Numbers Used For?

A routing number is a nine-digit number that is by banks to identify them as financial institutions. Every bank in the United States and abroad has a routing number. The routing number serves as the electronic address of a bank. It's used for transfers between deposit accounts, such as checking accounts, savings accounts, and investment accounts. Routing numbers are also used for domestic and international wires. However, sometimes, the routing numbers used for international wires are different than those used for domestic transfers.

Routing numbers are different from account numbers in that routing numbers are used to identify the bank or financial institution and the bank account number identifies the individual account from which the money is to be withdrawn or transferred to. If you have two bank accounts with the same financial institution, you'll notice that although the routing numbers are the same, the account numbers are different. This is so because the routing number identifies the bank and your account number identifies your individual account.

What Are Credit Card Numbers Used For?

A credit card number is usually a 16 digit number that contains information that's essential for processing payments. Credit card numbers do not contain a routing number, but they do have identifying information that makes processing payments possible. Additionally, credit cards are equipped with a CVV number that you will often have to provide when processing payments on the web or over the phone. Simply stated, your credit card number although does not contain a routing number, has information that enables merchants to identify your card issuer and account information so that payments you make are withdrawn from your account at your financial institution.

1. The First Number - The first number on your credit card identifies the type of credit card that you have as either being Visa, Mastercard, or American Express.

2. Next 6 to 8 digits - The next 6 to 8 digits are known as the issuer identification number (IIN), commonly known as a bank identification number (BIN) and they are used to identify the financial institution that issued you your credit card.

3. Remaining Digits - The remaining digits are unique to your and they are used to identify your specific account at your financial institution. Typically, these digits are selected by your card issuer to serve as your account number.

What Information Does Your Credit Card Contain?

Credit cards typically contain the following information:

  1. Issuer Name - Typically credit cards contain the issuer name of the bank or financial institution issuing your credit card.
  2. Rewards Offered - Typically, they also contain the rewards program associated with the credit card. For example, on Bank of America Credit Cards, if your card offers rewards, you will see the rewards program name on the credit card. For example, "cash rewards" or "rewards" or "premium rewards" will appear on your credit card.
  3. Cardholder Name - The name of the cardholder is always present on a credit card, allowing merchants to verify the holder of the credit card.
  4. Credit Card Number - Every credit card has a 13 to 16 digit credit card number that identifies the financial institution that issued the credit card as well as the specific account number of a cardholder, allowing for the processing of payments.
  5. Expiration Date - Every credit card has an expiration date that allows merchants to verify your credit card. Also, when your credit card expires, you'll have to obtain a new one. Typically, before your credit expires, your card issuer will mail you a new one. The expiration does not mean that your account will be closed, it only means that the credit card you have in your possession will no longer work after that date.
  6. Security Code - The security code on the back of your credit card serves as an added layer of security so that if someone were able to obtain your credit card number, they would face the added hurdle of having to obtain the security code on the back of your credit card in order to use it.
  7. Magnetic strip - The magnetic strip typically holds your credit card number, name, and expiration date.
  8. Chip - Recently, most merchants are moving towards reading card information from the chip as it is more secure than the magnetic strips that contain your card information.

Frequently Asked Questions (FAQs)

1. Is your routing number on your credit card?

No, credit cards do not have routing numbers. As such, there is not routing number on your credit card.

2. Do credit cards have routing numbers?

No, credit cards do not have routing numbers. Your account numbers is on the front of your credit card.

3. Do Capital One credit cards have routing numbers?

No, Capital One credit cards do not have routing numbers. Routing numbers are only used for deposit accounts, such as your checking account, savings account, or investment account.

4. What is the routing number for a Chase Credit Card?

Chase credit cards do not have a routing number. In general, credit cards do not have routing numbers.

5. How to find credit card routing number?

You will not find a routing number for a credit card because credit cards do not have routing numbers.


Student Credit Card vs Regular Credit Card

If you are trying to choose between applying for a student credit card vs a regular credit, you might be wondering, what is the difference between a student credit card vs a regular credit card. We will explain the difference between the two in more detail below.

Student Credit Card vs Regular Credit Card

Student credit cards are usually marketed towards college students, they offer limited rewards, have lower credit limits, but they are easier to get than regular credit cards. On the other hand, regular credit cards are directed at all adults in the united states, offer plenty of rewards, but typically require very good or excellent credit for a person to be approved for one. That said, both types of credit cards affect your credit, so use them responsibly.

Student credit cards are great for students who have never applied for a credit card because they can help them build credit, especially when used properly. If you open a student credit card, you should spend responsibly and make all of your payments on time. Making your payments on time and keeping your credit card balance low will improve your credit score and help you build your credit.

Student credit cards work the same way as do regular credit cards. So, having a single student credit card that you responsibly use and pay on time can get you a credit score in the mid-700's within just a couple of months. For example, when I opened my first student credit card and paid it regularly, I was able to attain a credit score of 740 within just a few months of opening the student credit card just by spending a couple of hundred dollars a month on my student card and paying the bill in full every month.

So, if you were wondering whether a student credit card works the same way as does a regular credit card, rest assured that it does. Use it responsibly and it will help you build credit. Misuse it and miss payments and you will cause significant damage to your credit. So, use it responsibly and start building your credit with a student credit card.

What Are the Differences Between Student Credit Cards vs Regular Credit Cards?

Let's discuss some of the differences between regular credit cards and student credit cards:

1. Credit Limits - The credit limits (how much you can spend on the credit card) are usually lower on student credit cards than regular credit cards. This is so because students are usually new to using credit cards and giving them too much credit may cause them to overspend and fall behind on making their payments. That said, after you've had a student credit card for 6 to 12 months, your card issuer may increase your limit, or you can request a credit limit increase. If you've been making your student card payments on time, your request should be approved. Once approved for a credit limit increase, you will be able to spend more on your credit card.

2. Limited Rewards - Student credit cards are often barebones, meaning they function as a credit card but offer little rewards. Some student credit cards offer student rewards, such as discounts on subscription services, such as Amazon Prime, but offer nothing more. That said, recently, some student credit cards are offering rewards such as 1% cashback and rewards points on every dollar spent. So, if you want a student credit card that offers rewards, you should research and find one that offers such perks. Regular credit cards, on the other hand, typically offer rewards points, cashback, and other perks for having the credit card.

3. Secured vs Unsecured - Typically, student credit card are unsecured, meaning the student is not required to place a security deposit (cash payment) with the credit card issuer to obtain the credit card. Regular credit cards, on the other hand, can either be secured or unsecured, meaning to obtain some regular credit cards, persons may be required to place a security deposit and the security deposit determines the credit limit. For example, if you were to open a secured credit card and you want a $500 credit limit, you would need to deposit $500 with the card issuer and the card issuer would then open a credit card for you with a credit limit of $500. Student credit cards do not usually require security deposits because the credit limits offered are low and card issuers understand that student are just starting to build their credit.

4. Very Good / Excellent Credit - Typically to get a regular credit card from the major banks in the United States, you need very good to excellent credit. This is different for student credit cards. You can often get a student credit card with a good credit score that ranges from 630 to 850, so even if you don't have much credit established, it's significantly easier to be approved for a student credit card than it is to be approved for a regular credit card. This makes student credit cards great for student who are just beginning to build their credit.

5. Annual Fee - Most student credit cards do not charge an annual fee. This is different than regular credit cards that offer rewards because they often charge hefty annual fees to offset the value of the rewards that they offer customers. Some student credit cards charge annual fees, but they are very low fees, but most card issuers don't charge them.

6. International Students - Card issuers know that some students come to the U.S internationally and therefore do not have a social security number. So, some of them provide students with the ability to obtain a student credit card without a social security number. This is extremely helpful for international students who do not have an SSN. Regular credit cards are very difficult to obtain without an SSN as it is the primary way for card issuers to verify a person's identity.

Should You Apply For a Student Credit Card?

If you're a student and you're just starting to build your credit, student credit cards can be a great option for you as the requirements for approval are significantly lower than those to get a regular credit card. That said, if you think that you might not be approved for a student credit or regular credit card that you have in mind, you can ask a parent or sibling to cosign with you on your credit card application. If you have a co-signer who has good credit, your odds of approval are much better because the card issuer will consider their credit in addition to yours. However, co-signers should be cautious when co-signing on credit card application because both you and co-signer will be liable for repayment of the credit card debt. If you primary cardholder fails to make payments on the credit card, the primary cardholder's credit will suffer and so will the co-signer's credit.

Overall, if you choose to open a credit card, regardless of whether it is a regular credit card or a student credit card, you should use your credit responsibly. By responsibly we meaning not going over your credit limit, keeping a low balance or no balance on the card, and making your payments on time. Keeping a large balance on your credit card or missing a payment can cause significant damage to your credit.

If You Aren't Approved For a Student Credit Card, What Are Your Alternatives?

If you applied for a student credit and were denied by multiple card issuers, here are some alternatives that you should explore:

  1. Secured Credit Card - Secured credit cards are a great alternative to student credit cards, especially if you were denied when you applied for a student credit card. Secured credit cards are very easy to obtain even if you have no credit or you have bad credit. This is so because card issuers do not take any risk when issuing secured credit cards. This is so because to obtain a secured credit card, you must make a security deposit in order to obtain the card. The security deposit you make will set your credit limit. For example, if you want a secured credit card with a $500 limit, you will have to give the card issuer $500. The card issuer will then provide you with a secured credit card that works the same exact way as does a regular credit card. Also, it impacts your credit the same way as does a regular credit card.
  2. Authorized User - The second option that you have if you need a credit card is to become an authorized user on another person's credit card. Although this is not a great alternative to have your own credit card account, it is an option if you need a credit card. Becoming an authorized user means that you will be issued a credit card in your own name, but you'll be on another person's credit card account. To become an authorized user your friend, parent, sibling, or another person must add you as an authorized user on their account. Once added, you will be issued a credit card that you can use under your own name. That said, use the card responsibly because it will impact your credit. Nevertheless, the primary account holder will be liable for making the payments on the card. So, you should trust the person who is adding you onto their account, and they should trust you to use the credit card responsibly because they are liable for making the payments on the card.
  3. Apply for a Different Student Credit Card - If you have applied for a single student credit card and were denied, you have the option of applying for a different student credit card. Check the requirements for the credit card before applying as some student credit cards have lower requirements than others. That said, do not apply for too many credit cards within a short period of time. This is so because every time you apply for any credit card, a hard inquiry is placed on your credit report. Although a single hard inquiry will only lower your credit score by a couple of points, submitting too many applications will lower your credit score significantly. Also, if lenders and card issuers see that you've submitted too many applications within a short period of time, they may deny you because of too many hard inquiries.

What Are the Requirements to Get a Student Credit Card?

To get a student credit card, the requirements are the same for a regular credit card, however, since student credit cards are designed for students, the credit score and history requirements are relaxed. That said, here is what you will need to obtain a student credit card:

  1. Must be 18 years of age or older
  2. Name
  3. Address
  4. Date of Birth
  5. Social security number
  6. Government-issued ID
  7. Employment status
  8. Income

These are the most common things you will have to provide when you apply for a student credit card or any other credit card.

Bottom Line

At this point, we hope that you now know the difference between a student credit card vs a regular credit card. If you have any questions or comments, please feel free to leave them in the comments section below. That said, student credit cards are a great way for students to begin building their credit. Just remember to use your credit card responsibly, keep low balances, and always make your payments on time to avoid damaging your credit.


Can You Pay Medical Bills With a Credit Card?

If you've had unexpected medical expenses and don't have the funds to pay your medical bills, you might be wondering whether you can use a credit card to pay your medical bills. We will answer this question in much detail below.

Can You Pay Medical Bills With a Credit Card?

Yes, you can pay medical bills with a credit card so long as your healthcare provider accepts credit cards. Usually, there is nothing in the terms of your credit card agreement that prevents you from paying medical bills with your credit card. That said, there are some disadvantages to paying your medical bills with a credit card.

Although you can pay your medical bills, such as emergency room visits or any other type of medical bills using a credit card, there are some disadvantages associated with doing so.

The first disadvantage is that you will have to begin making payments on your credit card if you're going to leave a balance on your credit card. There is no grace period and most card issuers will require you to make at least the minimum payment on your credit card. If you fail to make the minimum payment due on your credit card, your financial institution will report your account to the credit reporting bureaus as soon as the payment becomes more than 30 days past due.

On the other hand, not paying your medical bills and leaving them unpaid may give you some time. This is so because medical providers don't usually sell your unpaid medical debt to a collections agency unless it is 60, 90, or 120 days late, offering you some extra time before the debt impacts your credit score.

Once the debt is sold to a collections agency, if the collections agency adds a collections account to your credit report, the three major credit reporting bureaus will not report the medical debt until it is 180 days or more past due, giving you almost 6 months of extra time before the debt impacts your credit score.

Additionally, leaving medical bills unpaid gives you some negotiating power with the collections agency or the medical provider. You may even be able to have the medical charges significantly reduced from the original amount owed. However, if you pay them using your credit card, you will lose that negotiating power and as soon as your credit card becomes 30+ days late, your late account will be reported to the credit reporting bureaus, causing significant damage to your credit score.

So, before you rush to pay your medical bills with a credit card, think about the consequences we just listed above. It might be in your interest to leave the medical bills unpaid. However, if you know you can make your credit card payments on time and the bills seem fair, you can go ahead and pay them using your credit card.

When Should You Pay Medical Bills With a Credit Card?

You should pay your medical bills with a credit card only if you're reasonably certain that you can pay the balance in full shortly after paying it with your credit card. If you leave the medical bill payment balance on your credit card to pay down the amount gradually, you may end up paying a ton of fees in the form of interest on the balance.

Additionally, when paying a medical bill with your credit card, you should consider how much of your available credit you're going to utilize. As a rule of thumb, you should never use more than 30% of your available credit, and you should always strive to keep your credit utilization below 10%.

For example, if you have a $10,000 credit limit, and your medical bills total $6,500, you will use 65% of your available credit, which will cause a drop in your credit score. This is so because your credit utilization accounts for 30% of your credit score, and when you use too much of your available credit, your credit score will drop significantly. So, make sure you're not going to use more than 30% of your available credit by paying your medical bills.

What Other Options Do You Have to Pay Your Medical Bills?

If you have racked up medical expenses, here are some other options that may be available to you to pay your medical bills:

1. Negotiate - If you were charged with unreasonably high medical bills and are having difficulty paying your bills, you should try to negotiate the amount of your medical bills with the the hospital or medical provider. You will be surprised, but many medical providers will be willing to work with you to ensure that you pay your medical bills, often providing large discounts to persons who pay a large amount or all of the medical bills at once. So, negotiate with them and see if they offer you a discount. This method could save you hundreds or even thousands of dollars depending on the amount you were billed.

2. Payment Plan - If you do not have the full amount to pay your medical bill, you should ask your medical provider about being placed on a payment plan. A payment plans allows you to break down the amount you owe into several payments, making it easier for you to pay down the amount you owe your medical provider. Before you agree to a payment plan, ask your medical provider if they're going to charge you any interest or fees for this service. Based on the interest and fees, you will be able to make an informed decision as to which method best suits you.

3. Personal Loan - If you've have medical bills that you do not want to pay with a credit, you should explore the option of taking out a personal loan to pay your medical bills. Personal loans often have a lower interest rate than paying your medical bills with a credit card, making them less expensive than credit cards to pay off your medical bills and debt.

4. Medical Bill Advocate - If you are having trouble paying your medical bills because they are unreasonably high, you should look for a medical bill advocate. Medical bill advocates are experienced in reading and understanding medical bills and common costs for procedures. So, if you've been overcharged for a procedure or medical, they will be able to spot the overcharges and negotiate the bill with your healthcare provider. So, if you want the help of a professional health bill advocate, contact the Medical Billing Advocates of America and ask for their assistance. They might just be able to have your medical bills reduced.

The Bottom Line For Paying Medical Bills With a Credit Card

Although paying your medical bills with a credit card is possible, you should explore other options before using your credit card for such bills. This is so because credit cards often charge high-interest rates, so unless you are paying your medical bills with your credit card and immediately paying them off, you will have to pay interest on the amount. Also, if you're using a credit card, you will need to make your monthly credit card bills on time to avoid a negative impact on your credit score in the event that you do not make the minimum payments that are due. Failing to make minimum credit card payments is an extremely fast way to cause significant damage to your credit because late credit card payments are reported to the credit reporting bureaus once they become 30+ days past due. We provided you with some alternatives that you should explore prior to using your credit card to pay your medical bills. So, if you have any general questions or comments, please feel free to leave them in the comments section below.

Frequently Asked Questions (FAQs)

1. Can you put medical bills on a credit card?

Yes, you can put medical bills on a credit card. Typically, there is nothing in the terms of your credit card agreement that prohibits you from charging medical bills to them. Check your credit card agreement for more information.

2. What medical bills can you pay on a credit card?

You can pay all sorts of medical bills on your credit card. This includes dentist bills, hospital bills, and other types of medical bills.

3. Why can it be a bad idea to pay medical bills with a credit card?

It can be a bad idea to charge medical bills on your credit card because if you charge medical bills and need time to pay them off, your card issuer may charge you a ton of interest on the amount. Make sure you can make the minimum payment on your credit card, if you can, pay more than the minimum to reduce the interest you're charged. You should explore other options before using a credit card to pay medical and hospital bills.

4. What is the best way to pay hospital bills?

This all depends on your situation. If you do not have the money to pay the full medical or hospital bill, you should ask your medical provider about paying in installments and ask for a discount on the overall cost of your medical treatment.


Does a Company Credit Card Affect My Credit Score?

Whether you work at a large company and you've been given a credit card or you have your own small business and have opened a credit card, you might be wondering whether having a company or business credit card affects your credit score? We will answer this question in much detail below.

Does a Company Credit Card Affect Your Credit Score?

A company credit card can affect your credit score if you are the primary account holder on a small business credit card because small business credit cards typically require a personal guarantee, causing them to appear on your credit report and affect your credit score. Additionally, if you are an authorized user on a small business credit card, the credit card can also affect your credit score. However, if you work with a large company and have a corporate credit card issued in your name, the credit card is unlikely to affect your credit score as the account status is only reported on the corporate company's credit file and not your personal credit file.

So, if you have a small business and you're the primary cardholder or an authorized user, the credit card will appear on your credit report and will impact your credit score. So, be careful how you use the credit card and make sure to make all of your payments on the card in time to ensure that the card does not negatively affect your credit score.

If you're unsure as to whether a company credit card affects your credit score, you should pull a copy of your credit report and review it. If the account appears on your credit report, this means that the credit card will affects your credit score, so use it responsibly.

Even though you're not using your business credit card for personal expenses and the account has your business name on it, if it appears on your credit report, it will have an effect on your credit score just as would a personal credit card. So, if you make late payments, the late payments will appear on your credit report and they will have an impact on your credit score.

On the other hand, if you use your company credit card responsibly, make your payments on time, and keep your credit card balance low, these things will improve your credit score. However, if you miss payments and carry a high balance, this will lower your credit score.

This applies to the primary account holder and any authorized users on the account. For authorized users, if the primary account holder manages the account responsibly, makes payments on time, and keeps a low balance, this will help your credit score.

So, even if you're just an authorized user, you should ensure that the primary account holder responsibly uses the account because you're credit will be affected just as would the primary cardholder's credit.

Did The Card Issuer Check Your Credit Report When You Got Your Company Card?

When a small business borrower applies for a small business credit card, the card issuer will almost always check the primary cardholder's credit report before issuing them a credit card. This allows the card issuer to examine the person's credit report to determine whether the person is creditworthy enough to be approved for the credit card. However, if you're an employee of a small business and a small business owner wants to add you to the company credit card, the card issuer will likely not check your credit report. Only the primary account holder's credit report is reviewed prior to the card issuer opening the account. If you're uncertain as to whether your company card affects your credit score, you should review all three of your credit reports to determine whether it will impact your credit. If the account appears on your credit report, it will affect your credit score.

How to Avoid A Negative Impact On Your Credit Report?

If you have a small business credit card and you want to avoid the credit card from having a negative impact on your credit report, you should make sure to make all of your payments on time and keep your credit utilization (how much of your available credit you're using) at 10% or below and never to exceed 30%. Use the card just as you would your personal credit card because if you're the primary cardholder or an authorized user it will affect your credit just as would your personal credit card.

Also, to keep your account in good standing, you should periodically login into your online banking dashboard and check to see if someone else used or account or if there is unauthorized activity on your account. This ensures that no one else is misusing your account. Also, if you're not already in the habit of reviewing your credit report on a monthly basis, you should. This ensures that no one else has opened accounts in your name and that nothing negative that does not belong to you hurts your credit score.

Bottom Line

So, if you were wondering whether a company credit card affects your credit score, now you know that it all depends on the type of card that you have. If you have a small business credit card, the card will most probably affect your credit score because the status of such accounts is usually reported to the credit reporting bureaus just as would a regular personal credit card. Also, if your employer is a small business owner and he or she adds you as an authorized user on a small business credit card, this will affect your credit score the same way being added as an authorized user on a personal credit card affects your credit. That said, if you've been added to a large corporation's credit card, chances are that it will not affect your credit score because the account status is only reported as part of the organization's credit file and not your personal credit file. If you have any general questions or comments, please feel free to leave them in the comments section below.

Frequently Asked Questions (FAQs)

1. Do business credit cards affect your credit score?

If you are a small business owner and you open a small business credit card for your business, you are essentially making a guarantee to being held responsible for the debt on the card. So, if you have a small business credit card, your account status is likely going to be reported on your credit report, and the card will therefore have an impact on your credit score.

2. Can you be declined a company credit card?

Yes, you can be declined a company credit card. That said, corporate credit cards are easy to obtain as most corporate card issuers will not check your credit in the initial application process.

3. Is it illegal to use a company credit card for personal use?

Not necessarily. You can use a company credit card as agreed upon between you and your employer. Also, if you own the business, you are permitted to make personal purchases on your credit card account as there are no laws that prohibit a person from using a company credit card to make personal purchases. There may be some tax implications, but other than that the practice is permitted.

4. Does a business account affect personal credit?

Yes, a small business credit card account can affect your personal credit and credit score. So, review your credit report to determine whether the account is reported on your credit report and affecting your credit score.


Can a Non U.S Citizen Get a Credit Card?

If you're new in the United States because you've immigrated over and you're not a U.S Citizen, you might be wondering whether a Non US citizen can get a credit card? We will explain the answer to this question in much detail below.

Can a Non US Citizen Get a Credit Card?

Whether a Non-U.S citizen can get a credit card depends on the immigration status of the immigrant, as well as whether he or she has a social security number. Credit card issuers will want to verify your identity when you open an account, and so some card issuers will only issue credit cards to holders of a social security number, while others may be willing to open credit cards for holders of an ITN. Other card issuers might be willing to open a credit card for you without a social security number so long as they are able to verify your identity.

That said, here is some information that will help you determine whether you can open a credit card as a non-U.S citizen:

  1. Legal permanent resident - Some card issuers will only offer credit cards to persons who are legal U.S residents or U.S citizens. So, for example, if you have a green card and a social security number, most card issuers will allow you to open a credit card account. However, if you're an undocumented immigrant, you will have very few choices, if any.
  2. Social Security Number - Most card issuers will allow anyone who has a social security number to apply for and open a credit card. This is so because they can verify your identity easily if you have an SSN. That said, if you do not have a social security number, you should try to get an ITN, ITNs are used for persons who do not have a social security number to file for tax and obtain other government benefits. If you obtain an ITN, you will have more choices when it comes to opening a credit card because this offers card issuers a means through which to verify your identity. That said, you should keep in mind that not all card issuers and banks accept ITNs, so you may face some challenges obtaining a credit card with only an ITN.
    Card Issuer
    Allows Credit Card Application with ITN Only
    Bank of America
    Yes
    Citi Bank
    Yes
    Capital One
    Yes
    Chase
    Yes
    Discover
    No
    American Express
    Yes
    US Bank
    No
    Barclays
    No
    Wells Fargo
    No
  3. No ITN & No SSD - If you do not have an ITN nor have an SSN, you can still apply for a credit card using identity documents such as your passport or government ID. That said, without a social security number, it will be quite difficult to open a credit card with any of the major credit card issuers.
  4. Credit History - Even U.S citizens who have a social security number often find it difficult to open a credit card if they do not have good to excellent credit history. This is so because card issuers and banks rely on a person's credit history to assess whether or not the person is likely to repay the money they're going to borrow on the credit card. That said, if you're a U.S citizen or permanent resident with a social security number, it will definitely be easier for you to open a credit card because your identity is easily verifiable.

Permanent Residents With a Social Security Number

If you're a permanent resident and you have a valid U.S social security number, you can apply for any credit card that you want and you have decent odds for being approved for an entry level credit card. If you apply and you're rejected because you do not have sufficient credit history, you should consider applying for a secured credit card. Secured credit cards works the same exact way as do regular credit cards, however, the only difference is that you must pay a security deposit to obtain the credit card. Typically, the security deposit that you pay will set your credit card spending limit.

For example, if you apply for the Bank of America Secured Visa credit card, you may be required to place a minimum security deposit of $300. If you place a $300 security deposit, your credit limit will be set at $300, meaning you can spend up to $300 on the credit card. Secured credit cards build credit just as do regular unsecured credit cards. If you keep the account open for 12 months and you use the credit responsibly and make your payments on time, Bank of America and other banks may return your security deposit to you and convert your account into a regular unsecured credit card.

Undocumented Immigrant (Non U.S Citizen)

If you're an undocumented immigrant, you probably do not have a social security number and therefore need to obtain a credit card that does not require an SSN and these gems are extremely difficult to find. If you're undocumented, your best option is to visit your local credit union or community bank and ask them about your options. The major card issuers are unlikely to issue you a credit card because they will not be able to verify your identity. We have heard of some people living in communities with high populations of undocumented immigrants being able to open credit cards, so it is not impossible, but it will be very difficult. That said, there are no laws that prevent financial institutions and card issuers from issuing credit cards to undocumented immigrants. Card issuers often choose not to because it is very risky to issue a credit card to someone without being able to verify his or her identity. So, if you really need a credit card, you should ask immigrant advocacy groups for advice or you should visit your local community bank or credit union and ask them about your options.

Students in the U.S on Student Visa

If you're a student in the United States and you've come to America on a student visa, there are plenty of student credit card options that you can take advantage of. For example, Bank of America will allow you to open a student visa credit card with only a copy of your passport, student visa, and immigrations forms. Many banks allow the practice and welcome students to apply for their credit cards. To obtain a student credit card, you're often not required to have a social security number.

Becoming an Authorized User

If you are undocumented, you should consider becoming an authorized user on another person's credit card. To become an authorized user, you need to find someone who has an open credit card account and ask them to become an authorized user on their account. If the person agrees, they can add you by either adding you to the credit card online via online banking portal, by calling the bank and having your name added to the account, or by visiting your local bank branch. You typically do not need a social security number to become an authorized user, it's the easiest way to obtain a credit card.

Once added as an authorized user, you will be issued a credit card with your name on it. That said, the challenge with becoming an authorized user is finding a person who is willing to add you to their account as one. This is so because the main cardholder is responsible for the debt that you add to the card. So, if you do not pay, the account owner will be responsible for repaying the money spent on the card. Typically, this option works best if you're added to a parent, brother, sister, son, or daughter's account because there is some trust that you will not misuse the card.

What Will You Need to Apply for a Credit Card?

The application process to obtain a credit card is almost the same regardless of which bank or card issuer you're applying at. Here is some of the common information that you must have in hand to apply for a credit card:

  • Name
  • Date of birth
  • Physical address
  • Income & Employment Status
  • SSN or ITN
  • Citizenship
  • Country of citizenship
  • Monthly housing or rent payment
  • Whether you have a bank account
  • Visa (If you're not a U.S citizen)

Once you have all of this information, you can fill out the form either online or by going to your local bank branch and applying there. After you apply, you will be notified whether you've been approved for the credit card. If your application is denied, you will be given a reason as to the denial.

Use Your Credit Card Responsibly

If you're successful with opening a credit card, you should use your new credit card responsibly. Responsible use involves charging only as much as you can afford to pay off at the end of every month. You should strive to keep your credit card balance as low as possible, never exceed 30% of your available credit limit. Ideally, you want to keep your credit utilization below 10% and never to exceed 30%. Keeping your balance low is essential for building a good credit history.

Additionally, you should make your payments on time before the payment due date. Missing a single payment can cause significant damage to your credit score. So, make sure to make your payments on time. Signing up for online banking can make it much easier for you to make payments and be notified of upcoming credit card payment due dates.

If you have any general questions or comments, please feel free to leave them in the comments section below. We hope that we answered the question can a non-U.S citizen get or open a credit card. Feel free to share your experience of applying for a credit card while being an immigrant or non-U.S citizen.


Should You Close a Credit Card With an Annual Fee?

If you have a credit card with an annual fee and you're thinking about closing such a credit card because it has an annual fee, you've come to the right place as we will discuss what the consequences are for closing a credit card with an annual fee, as well as the alternatives that you have.

Should You Close a Credit Card With an Annual Fee?

Whether you should close a credit card with an annual fee depends on the benefits that come with this card and whether you're taking full advantage of them. If you're not taking advantage of the benefits and rewards of a credit card with an annual fee, you should consider closing the card. However, an alternative option that you have is contacting your card issuer and asking them to convert your account into a credit card account that does not have an annual fee. This will assist you with retaining the good credit history you've built with your credit card.

Before closing a credit card with an annual fee, you should keep in mind that closing an account can typically lower your credit score. Also, closing a credit card with a long credit history can reduce the total age of your accounts, which can have a negative impact on your credit score. Also, closing a credit card can lower your credit score because it can increase your credit utilization. So, if you have an account in good standing, you should consider alternatives to closing such an account, as well as consider the consequences of closing down a credit card account (more on this below).

The best alternative to closing an account with an annual fee is to contact your card issuer and ask them about the option of converting your account into a credit card that does not have an annual fee. This will allow you to keep the good credit history that you've built on your account by transferring it over to an account that does not have an annual fee.

How Do Credit Cards With an Annual Fee Work?

Credit cards with an annual fee work in that a person who opens account is charge a fee on an annual basis, usually the fee is charged on the anniversary of opening the account. For example, if you open an account on January 1st 2021, every January 1st, you will be charged an annual fee. Annual fees typically range from $95 to $495, with some credit cards charging lower amounts or higher amounts for the privilege of having the credit card.

The annual fee on your credit card account is usually charged to your credit card and will show up as a balance on your credit card account. The annual fee will be charged to your credit card account even if you have not been using your credit card. So, to keep your credit card in good standing, you should pay the annual fee in order to keep your account from being reported as late. A late payment notation can cause significant damage to your credit score, especially if you have flawless credit history.

That said, credit cards with annual fees often offer premium benefits and rewards, and so they charge an annual fee to offset the cost associated with offering you the rewards and benefits that they offer. Typically, the higher the annual fee, the more rewards and benefits a card holder will be able to obtain. Rewards and benefits includes points per dollar spent on purchases, access to airport lounges, and the waiver of some fees for certain services.

Having said that, some secure credit cards also charge annual fees, such as $39, but this fee is charged to applicants who have poor credit. Not all secured credit cards come with annual fees, but some of them do and they do not offer any rewards for the fee that they charge.

When Should You Keep a Credit Card With an Annual Fee?

Generally, you should keep a credit card with an annual fee when the rewards and benefits exceed the annual fee that you pay on your credit card. For example, if you have a credit card account that offers cashback, look at how much cashback you've earned in the past year, if your cashback earnings exceed the annual fee on your credit card, it might be worth it to keep that card since you've earned more money than you paid for to hold the credit card. Furthermore, you should look at other cashback credit cards that offer similar rewards, if they offer the same rewards without an annual fee, it may be worth it for you to switch cards.

That said, if your credit card does not offer cash back, try to estimate the value of the rewards and benefits you receive from the credit card. If the benefits and rewards exceed the annual fee that you pay on the credit card, then the card is probably worth keeping.

However, if you're not getting a decent return on the money you spend to keep the card, it may be worth it to switch accounts. Some card issuers offer several credit cards and may be able to switch your account to a free one. Converting an account will help you keep the credit history you've built on the card by transferring it over to a non-annual fee credit card.

When Should You Close a Credit Card with an Annual Fee?

You should close a credit card with an annual fee in the following situations:

  1. The value of the rewards and benefits that you earn do not exceed the annual fee spent on the card
  2. You do not take full advantage of the benefits the credit card offers
  3. You find a credit card that offers similar benefits without you having to pay an annual fee
  4. The card issuer has changed the rules of the rewards and benefits program to the extent that card no longer offers the value it once offered

Alternatives to Closing a Credit Card That Charges an Annual Fee

Here are some alternative to closing a credit card that charges an annual fee:

  1. Converting the account to a credit card that does not charge an annual fee
  2. Contacting the card issuer and asking them to waive the annual fee
  3. Contacting the card issuer and asking them to provide you with addition rewards in exchange for continuing to keep the credit card open

How Happens to Your Credit Score If You Close a Credit Card with Annual Fee?

Before closing a credit card with an annual fee, you should consider the consequences to your credit score. Typically, when a person closes his or her credit card, he will decrease the amount of available credit he has, thus increasing the total credit utilization. Increasing credit utilization can lower a person's credit score because credit utilization (how much of your available credit you're using) accounts for 30% of your credit score. So, when it increases, your credit score will drop. That said, one way to avoid this is to close the card and lower the balances on your other cards to avoid using (utilizing) more of your available credit.

Furthermore, if you have an old account that's in good standing, you should avoid closing it because it will reduce the overall age of your accounts. Your account age makes up 15% of your credit score. So, the older your accounts, the better your credit score will be. So, to avoid lowering the average age of your accounts, you should consider keeping the account open or converting it to a free credit card with the same card issuer. This will allow you to keep the good credit history you've built behind your card.

How Should You Close a Credit Card with an Annual Fee the Right Way?

  1. Ask your card issuer to convert the account into a free account before you close it
  2. Use the rewards in your account because if you close the account you will lose them
  3. Make sure not to leave a balance on the credit card because you could cause significant damage to your credit if you leave an unpaid balance.
  4. Consider the consequences for closing down your account before you close it, it will be too late to do so once the account is closed

Bottom Line

At this point, it should be apparent that you should consider closing down a credit card account with an annual fee if you're not taking full advantage of the benefits of the card and the rewards you receive do not exceed the annual fee that you're paying. That said, you should consider some of the consequences associated with closing a credit card account before you close it. If you have any general questions or comments concerning whether you should close a credit card that charges an annual fee, please feel free to leave them in the comments section below.