A credit card is a card issued by a bank that allows the cardholder to purchase services and goods on credit. The card issuer, which in most cases is a bank, will provide a revolving account’ ( the type of credit account) through which the cardholder may make payment on part of the balance. Interest is charged on the unpaid balance. That’s then added to the total that the user owes.
The card issuer grants a credit line to the holder, from which money can be borrowed for payment to a merchant. The term credit line is also used to refer to the credit limit of a customer, that is, the maximum amount of credit a customer is allowed.
Cashback reward program
Cashback is one of the many perks that card issuers offer to cardholders as incentives.
This program is operated by the card issuer, where a percentage rate(around 0.5 to 2%) of select purchases is paid back to the cardholders. For example, if your card gives you 1% cashback, then you’ll earn $1 for every $100 you pay.
Sometimes cashback is paid annually, monthly, or at the end of the year. Some card issuers need cardholders to call to get cash back.
One credit card company actually offered a percentage rate of 5% on purchases. This consisted of – grocery items, gasoline, and purchases from drug stores. It also had a full 1% on other purchases, no matter what the spending amount was.
Some issuers offer a cash bonus to spend a certain amount within a given period of time (around $50 to $200). That’s a lot of money in your pocket.
Credit card programs like Cashback are helpful to people who pay off their credit card statement every month. If the balance isn’t paid within the time limit, the extra interest eclipses any reward points earned.
How to avoid losing the rewards
One problem that some cardholders face is that some card issuers rarely show the cardholder which purchase amounts earned cash back.
Usually, the reward check is automatically mailed to the cardholder, but recently, the more common theme is for the cardholder to process the reward check once the cash back reaches a certain amount.
That’s called as breakage. This means that card issuers get increased profits when a cardholder fails to collect their reward.
Consider going for reward programs like this if you spend a lot of money in categories that offer cash back like gas, clothes, groceries, food, etc.
But if you carry a balance (like most people), it’s better to go for a low-interest card. Otherwise, you’ll be spending a lot on interest. See what incentives are right for you. A little bit of research can find a lot of different cards that can be potentially amazing for you.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.