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Issues Associated With Ownership of Credit Cards and How to Tackle Them

Published on December 14, 2012 by   ·   No Comments

AssociatedFor some, a credit card is the most excellent spending vehicle ever created  for man. It not only gives convenience in paying goods, but rewards as well. As  good as this may sound, this plastic is also a reason why people get into debt.  Many cardholders face different issues once they get close to a credit card -  starting from the time they signed up to the time they ended up in a huge  financial obligation.

Knowing how to handle your card is the right approach to using the plastic to  your advantage. Knowing the different issues associated with ownership of credit  cards is essential as well. Being aware helps you tackle card-related problems  in the future.

Here are different issues that you may have faced, or will probably be  facing, as soon as you apply for a card:

Getting Turned Down

You have not missed any payment and you are fully aware that you have good  credit rating. Still, you get denied for a card. One way to solve this issue is  to know the exact reason why you have been rejected. Perhaps, it is because you  did not fill out the application correctly or you do not meet the income  requirement. You can also check your credit report. There are cases where your  score is the reason why you have been declined. There may be errors in your  credit file.

Card application rejection does not affect your score. However, if you apply  for too many cards at the same time, this will decrease your rating.

Credit Card Fraud

If you have lost your card, you should report the incident immediately. If  not, someone could gain access to it and charge purchases on it. Sadly, fraud  does not only happen this way. There are times when even if you still have the  card, someone else could be using it as well. To avoid this, do the  following:

  • Don’t give out your card’s PIN.
  • Don’t let anyone else know about your Social Security Number.
  • Shred all financial documents that you don’t need.
  • Keep your card in sight whenever you pay for anything.
  • Only transact with trusted websites.


You can check if you are a victim of fraud by looking at your credit report.  It contains all the accounts open under your name and all the debts you  have.

Can’t Pay Bills

You may already know that paying your balances in full on time is the best  thing that you can do. However, if you are barely making ends meet and you have  no room for full card payments, make the effort to repay at least your minimum  payment. Be warned, however, that even though this will not harm your score,  your balance can rack up interest. Whether or not you have high interest rates,  making it a habit not to repay your balances will lead you to debt.

Chasing Rewards

Most people get attracted to the rewards scheme, making them spend more than  what they can pay for. Rewards are great, but only if you can pay off your card  in full. A card that comes with rewards often has high interest fees. So, if you  choose to carry a balance, your rewards would become insignificant.

A card holder should bear three qualities to take full advantage of his  plastic: responsible, disciplined, and in control. With such traits, you can  have the power to outsmart the issues associated with ownership of credit  cards.


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