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Do online stores allow split payments?

Though most online retailers do not allow payments between two different credit cards, some allow split payments between a credit card and a gift card. If you have a gift card with a particular retailer but it won’t cover the entire purchase, you can usually use your credit card or debit card to pay the remaining balance.

Many retailers will not allow you to split your transactions across different credit or debit cards. That’s because splitting cards for a single transaction can be difficult because of verification or technical issues, making it difficult to process the payment. Prohibiting dividing payments can also help cut down on fraudulent payments. 

Meanwhile, here is a list of the online stores and whether they allow split payments between two credit cards.

Amazon

Amazon allows you to divide your payment between an Amazon.com gift card and another form of payment. At least, that’s true for most major credit or debit card providers. However, you can’t use multiple debit or credit cards as payment. 

Target

Target Corp. only allows the use of one credit card with online payments. Additionally, you can’t combine a Target credit card and a Target debit card in one purchase. However, you can combine a credit card or debit card with up to 10 Target GiftCard payments.

Going to the store in person is a different story. Target allows consumers to use multiple cards in one transaction. 

BestBuy

Best Buy Co., Inc. accepts most major credit and debit cards as payment. However, when it comes to splitting payments, it’s similar to others. You cannot use multiple forms of payment in one transaction. For example, if you’re trying to buy a refrigerator, you can not combine PayPal or Apple Pay payments and credit or debit card payments. 

Walmart

Walmart Inc. also accepts most major credit cards as payment. They even accept electronic benefit transfer (EBT) cards as a form of payment except in some states.

Though you cannot use more than one credit card for payments at Walmart, the company allows split payments with gift cards. Customers can use up to five gift cards in a transaction with their credit card. 

Wayfair

Wayfair LLC has similar rules as the retailers mentioned above. It limits split payments and accepts major credit cards on the checkout page. 

There is one unique positive that Wayfair offers customers. If you chat with customer service, you may be able to pay with multiple cards. However, it has a limit on the number of gift cards you can use in one transaction. This could make it easier for customers who need to make larger purchases. 

PayPal

PayPal offers split payment methods for purchases. It also provides an option to pay for an item over time, splitting the sum into monthly payments. In addition, PayPal accepts most major credit cards. 

Paying for purchases without splitting payments online

Though most retailers do not allow split payments online, there are still ways to make larger purchases.  

Visit the store in person 

While some retailers do not allow split payments online, you might be able to divide the transaction in-store. In-person, retailers may offer the option to use two credit cards or even have alternative options for you. 

Hold off on making the purchase for now 

If you can’t make a large purchase on a single credit card, you might want to consider holding off on buying that item. Do you have the capability of waiting a bit and saving up more money first? Or do you really have to make a split credit card payment? 

Decide whether you need the item right away. If you can wait a bit, revisit purchasing in a few weeks or months when you can make the payment all at once. 

Use your credit card points 

Depending on the retailer and your credit card, you could use your rewards points to help you pay for something. That might make the final payment cheaper, or it could cover the entire bill.

First, check with your credit card company and see whether the retailer you are looking to make a purchase with has point options available. Sometimes the reward points can significantly impact how much you need to pay, and you can use your card for the remainder. 

Different cards have different perks. Before opening a credit card, you should check its benefits so you know whether you’re best capitalizing on your credit options.

MoneyLion can help you explore a wide variety of credit card options tailored to different needs and preferences.

Make use of buy-now, pay-later apps 

Many popular online retailers offer the pay-later option when making a purchase. They typically divide the total purchase into four interest-free payments paid every two weeks. This option is a great way to manage larger purchases without the need for multiple forms of payment. In addition, most retailers do not require a minimum amount to use this service, and it typically does not involve a credit check. 

Instacash 

MoneyLion offers Instacash^SM, which works as a cash advance that lets you tap into your pay whenever you need it. You can link your primary checking account to your account to qualify for up to $500 with no interest, no credit check, and no mandatory fees. By linking your account, Instacash offers early access to your pay, which can eliminate the need to split payments. 

Splitting payment across cards

Many retailers won’t allow you to divide a purchase across multiple credit or debit cards. However, there are workarounds if that’s what you’d like to do. You could buy in-store or find alternative financing options like a credit builder loan. 

FAQ

What makes up your credit score?

First, it’s important to understand the factors that go into your score and who decides on it. Let’s take a closer look at where your credit score comes from.

Your credit score is a report of how you’ve used credit. It lets companies like lenders and credit card issuers predict how much risk they would be taking if they loaned you money. Your credit report shows if you’ve ever missed payments, the types of loans you’ve taken out and if you have filed for bankruptcy in the past. 

The three major credit reporting bureaus are Experian, Equifax, and TransUnion. These companies collect, store, and organize the data on your credit reports. Then they each issue you a credit score from the information contained in your report. Credit scores are important because they allow creditors to see a snapshot of your credit history without spending time reading your report.

There are a few different methods that credit reporting bureaus can use to calculate your score. One popular model is the FICO model. The factors that go into your credit score include:

• Your payment history (35%): Your payment history is a record of how often you pay your bills on time. Missed or late payments affect your score negatively, while on-time payments result in a higher credit score.
• Your credit utilization (30%): Your credit utilization is the percentage of the total available credit you use every month.
• Length of your credit history (15%): Typically, creditors trust borrowers who have a long history of managing their credit. Keeping your accounts open longer could help raise your score.
• Your credit mix (10%): Most creditors like to see that you have experience managing a few different types of credit. Diversifying your credit types could help raise your score.
• New credit inquiries (10%): Borrowing a ton of money at once could be a red flag for some lenders. 

Five levels of credit scores

Now that you know what goes into your score, let’s take a look at what lenders consider a good score and a bad or poor score. The FICO scoring ranges are as follows: 

• Very poor: 300-579 points. Obtaining a credit card or loan with very poor credit is more challenging. 
• Fair: 580-669 points. Lenders consider borrowers with a “fair” score to be higher risk. 
• Good: 670-739 points. You’re a much more appealing candidate for loans and credit cards if you have a credit score in this range.
• Very good: 740-799 points. This range is typically considered above average.
• Exceptional: 800-850 points. At times, lenders may see people with exceptional credit scores as very dependable borrowers. 

The maximum credit score that you can have is 850. However, also keep in mind you might not need a perfect score to achieve your financial goals. In fact, in 2022 the average credit score was 714 according to Experian, so don’t feel too much pressure if you are not in the 800 club. 

Why is my score different on different credit bureaus?

Depending on what type of loan you are applying for, the lender can use many companies that access risk. FICO, Experian, TransUnion, and Equifax are some of the most used bureaus. 

Each bureau assesses your payment history, credit utilization, credit history, credit mix, and inquiries at a different weight, resulting in a slight deviation in score from each company. You might notice a variation depending on when you look too. Each credit bureau could be on a different rotation when receiving your credit updates. For example, Experian could be updated in 7 days, and TransUnion could be updated in 15 days. All three scores could be different and not in sync, depending on when you look. Lenders also have the choice to report to their preferred credit bureau(s), which can positively or negatively affect your credit score.

How long does it take to build credit?

Building credit takes time; essentially, it is a lifelong process. The amount of time it’ll take to see your score rise depends on what types of items are on your credit report, your current score, how long you’ve had your accounts, and what steps you’re taking to raise your credit.

Your credit score will take at least thirty days to change because credit reporting bureaus usually only collect payment data once a month. However, it’ll take much longer to reach your goal if you’re trying to raise your score by 200 points. Patience is key here! It may take anywhere from six months to a few years to help raise your score by 200 points depending on your financial habits. As long as you stick to your credit-rebuilding plan and stay patient, you’ll be able to help increase your credit score before you know it.

Increase your credit score by 200 points over time: 6 tips

Are you ready to start improving your credit score? Use these tips to help your credit score rise month after month.

1. Use multiple types of credit

Using your credit card and paying it off every month is an excellent way to help boost your score. However, creditors want to see that you have experience managing multiple types of credit.

A credit card is considered a revolving type of credit. Revolving credit “refills” after you pay it down and allows you to use it again and again. As for non-revolving credit lines, you can only use those once. As soon as you pay off a non-revolving account, your lender closes your account. Personal loans, mortgage loans, and student loans are all examples of non-revolving credit types.

2. Get a credit builder loan

Consider a credit builder loan if you want to add a little diversity to your credit portfolio and use a method proven to help build credit. Credit builder loans are small, low-interest loans that can help you improve your score. 

With some loan providers, you’ll get a sum in cash and can spend that money on almost anything, from home updates to catching up on bills. Then, you pay back the loan and interest with monthly payments. Your loan provider reports the payments to the credit reporting bureau. As long as you don’t fall behind, on time payments can help build your credit score.

3. Report bills to the credit bureaus

Did you know you can boost your credit with all types of payments? Not all bills are automatically reported to credit bureaus. Get in touch with each of your providers to double check. 

4. Use a finance tracking service

Using a financial tracking service can help you stay on top of your finances. From banking to debt to credit scores, financial tracking services can make it easy to get a comprehensive overview in one place. Make sure to explore and research various finance tracking services before settling on a single pick. 

5. Make consistent payments

Your payment history makes up about 35% of your FICO credit score. This means that one of the best ways to improve your score is to build up a history of positive payments.  

Missing payments can lower your score, so prioritize your payments with a new organization strategy. Sit down with all your loan and credit card statements and write down how much you owe on each account, your minimum payments, and your due dates. 

Then, input the dates into your cell phone calendar or write them down on your desk calendar. You may also want to authorize autopay if your creditor allows it. Autopay automatically deducts your minimum payment on your account’s due date so you won’t have to remember it on your own. 

6. Keep your utilization low

On top of keeping your payments low, you should also be mindful of keeping your credit utilization low. Credit utilization refers to how much of your available credit you use.  Maxing out your credit cards could lower your score. A good rule of thumb is to keep your credit utilization below 30%. If it’s possible, make it a goal to keep it around 10%.

If this isn’t possible, consider asking your lender for a credit line increase. Increasing your total available credit automatically lowers your utilization rates. Be careful to avoid the “lifestyle creep” of overspending if you do get a credit line increase. 

Improvements take time

Now that you understand the basics of credit, you can see that building it isn’t hard; it just takes time. Whether it is 200 points or 20, you won’t see results overnight while working to improve your credit score. Always pay your bills on time, keep your credit mixed and your utilization low, and be patient. Think of improving your score the same way as losing weight. You won’t lose ten pounds after a single day or even a week of eating right and exercising. Your credit score works the same way; it takes a pattern of positive habits to see results. While building your credit, remember that having an above-average score could help you get better rates on credit cards, mortgages, auto loans, and more.

FAQ

Meanwhile, you should know that building a good credit score takes time and effort, but it’s definitely achievable. MoneyLion can help you achieve this! Our app offers tools and resources to help you manage your credit and help build a brighter financial future. You can also check the various debit and credit cards below that meet your requirements.

MoneyLion can help you explore a wide variety of credit card options tailored to different needs and preferences.

Understanding how many credit cards you can apply for at once

You are allowed to apply for numerous credit cards. There’s no strict rule stopping you from submitting several applications. However, each application could temporarily lower your credit score because of the hard inquiries lenders make to check your credit history.

Typically, a hard inquiry might lower your credit score by a few points, but the impact is temporary, usually affecting your score for up to a year, even though the inquiry remains on your credit report for two years.

When should you apply for multiple credit cards?

Applying for multiple cards might be a good idea in certain scenarios. For instance, if you’re looking to increase your available credit or you’re interested in diversifying the rewards and benefits you receive, such as cashback, travel miles, or hotel points. Just make sure you’re also considering the impact on your credit score and managing your new credit responsibly.

How often should you apply for credit cards?

In the world of credit cards, experts generally recommend waiting six months between applications, according to CNBC. This might seem like a wait, but there are two smart reasons behind it.

First, applying for too many cards in a short period can make you appear credit-hungry to lenders. Think of it like applying for every job opening you see – it might raise some eyebrows. Spreading out your applications shows you’re a responsible borrower, not someone desperately seeking credit.

Second, each application triggers a hard inquiry on your credit report. Although a single inquiry usually has a small impact, several clustered together can add up and result in a noticeable drop. While a few might not be a big deal, a bunch clustered together can bring your score down. Waiting between applications allows these inquiries to “age” on your report, just like those school marks eventually fade. This means they have less impact on your overall credit score.

Building good credit can help unlock a world of financial benefits, like qualifying for better interest rates on loans and mortgages. If you’re looking for a way to build or improve your credit, join MoneyLion WOW membership and apply for up to a $1,000 Credit Builder Loan with a competitive rate and no hard credit check*.

Pros and cons of multiple credit card applications

There’s a lot to consider when it comes to building your credit with credit cards. Applying for new cards can offer some great advantages, but there are also potential drawbacks to be aware of. 

Advantages of applying for multiple credit cards:

• Unlock rewards and benefits: Many cards offer enticing rewards programs, like cashback on purchases, travel rewards points you can redeem for flights or hotels, or even extended warranties on your purchases. Having a variety of cards allows you to maximize rewards based on your spending habits.
• Improve your credit utilization: This refers to the percentage of your available credit limit that you’re actually using. Keeping your balances low across all your cards contributes to a healthy credit utilization ratio, a major factor in your credit score.
• Increased access to credit: With more cards comes a higher total credit limit. This can be helpful in emergencies or for making larger purchases you’ve been planning for.

Disadvantages of applying for multiple credit cards:

• Hard inquiries can hurt your score: Each time you apply for a card, a hard inquiry is placed on your credit report. While a single inquiry might not cause a significant dip, multiple inquiries in a short period can lower your score.
• The temptation to overspend: Having easy access to credit can be tempting, especially if you’re not disciplined with your budget. Juggling multiple cards and payments can lead to overspending and potential debt.
• Annual fees: Some cards have annual fees, which can outweigh the benefits if you’re not strategic about your choices. Consider if the rewards and perks justify the annual cost.

Alternatives to applying for multiple credit cards

Before hitting the apply button on multiple credit cards, you’ll want to explore some alternative strategies that can also give your financial health a boost.

Prioritize paying off existing debt before considering new credit

One powerful strategy is to focus on paying off any current debts before applying for new credit. This isn’t just good for your peace of mind, it also has a double benefit for your credit score. First, it improves your credit utilization ratio (the amount of credit you’re using compared to your limit), which is a major factor. Second, it reduces the interest you pay over time, freeing up more cash.

There are two popular methods for tackling debt:

• The Avalanche Approach: Focus on paying off the debt with the highest interest rate first. This saves you the most money in interest charges overall.
• The Snowball Method: Pay off the smallest debts first, regardless of interest rate. This can provide a motivational boost as you see debts disappear quickly.

Consolidate existing debts with a personal loan

If you’re juggling multiple debts, consolidating them into a single personal loan can simplify your finances. This could potentially snag you a lower interest rate than your current credit cards, saving you money and making payments easier to manage. Instead of juggling multiple bills, you’ll have one monthly payment, thus reducing the chance of missed payments that hurt your credit score.

Use a balance transfer credit card 

If you’re drowning in high-interest credit card debt, transferring the balance to a card with a lower interest rate, or even a 0% introductory rate, can be a smart move. This lets you pay down the debt without the interest burden growing, especially during the promotional period. 

Just be sure to factor in any balance transfer fees and the standard interest rate that kicks in after the intro period is over. This strategy works best if you’re confident you can pay off the transferred balance before the promo period ends.

Smart steps to save your credit score

There’s no magic number for how many credit cards are “too many.” The key is to be strategic and consider your needs. Think about your financial goals, spending habits, and creditworthiness before applying. Spreading out your applications allows you to reap the rewards and benefits while minimizing the impact on your credit score.

FAQ 

You know that it’s worthwhile to maintain good credit. But what’s the credit score that you should aim for? And how do you get there? We’re going to break it down for you.  

What is the highest credit score you can get?

A 900 credit score may be the highest on some scoring models, but this number isn’t always possible. Only 1.31% of the population can achieve a credit score of 850, so there’s a certain point where trying to get the highest possible credit score isn’t realistic at all. Having good credit can start at around 700. In fact, only a few credit score models have a credit score limit of 900. For instance, both the FICO and VantageScore models max out at 850.

How are credit scores calculated?

You don’t only have one credit score. Credit reporting bureaus calculate your credit score differently. We explain the most popular credit model, which is FICO, and from there, you’ll be able to understand how credit bureaus calculate your credit score. 

How is your FICO credit score calculated?

Here’s how FICO looks at your financial history and ultimately calculates your credit score.

• Payment history: 35%
• Debt or amount owed: 30%
• Length of credit history: 15%
• New credit: 10%
• Credit mix: 10%

5 Benefits of an excellent credit score

Solid credit scores open up a lot of doors. Here are just a few reasons why raising your credit score is worthwhile. 

1. Access to a range of loan products

It will feel like lenders will practically be beating down your door to give you money to buy a house or a car if you have an excellent credit score. But beware of the risks associated with opening too many loan products, like credit cards, since overspending can be tempting. Make sure you don’t spend above your budget and undo your hard work.

2. Better chance of rent approvals 

Your credit score is often the first thing that landlords look at when going through rental applications. Your high credit score will help you stand out in the rental process. It can make it easier to secure your dream apartment and give you leverage when negotiating your rent amount.

3. Larger credit limits

Larger credit limits allow you to use more of your lender’s money. This factor has its obvious benefits, but there’s a little more to it than simply having access to more credit. Greater credit limits also make it possible for you to keep a wider distance between your balance and the amount of credit you have available. This is your credit utilization ratio, and it plays a key role in influencing your score. The more available credit you have that you’re not using, the stronger your score will be.

4. Insurance discounts

One of the first things that insurance providers look at during the approval process is the credit scores of applicants. Lenders label people with high credit scores as more reliable, and they are more likely to approve candidates with stronger credit than those with low scores. 

For instance, in the realm of auto insurance, individuals with excellent credit scores might qualify for significant discounts on their premiums, which could potentially lead to more favorable terms and reduced overall costs for their coverage.

5. Better interest rates

Better interest rates are the result of better credit scores. When you have a strong credit score, your interest rates will be lower when you take out personal loans, credit cards, mortgages, and car loans. You’ll be able to access lower monthly payments and you’ll save over the lifetime of your loan. More savings on interest translates to more money in your budget.

8 ways to achieve a perfect credit score 

You can find many ways to raise and fix your credit score. Here are eight helpful tips. 

1. Maintain a consistent payment history

Consistently paying back debt can be the best way to raise your credit, but it takes time. Speaking of time, make sure you pay your bills on time. Create a pattern of consistency that you can show to lenders, and you will start to see your credit rise over time. 

2. Monitor your credit score regularly

Make sure there aren’t any major snags along the way as you work to raise your credit score. Monitor your credit score regularly. Ideally, you should check in at least once a month, especially since different lenders or creditors will process at different times.

Regularly monitoring your credit score is crucial because it allows you to catch errors or discrepancies early. This process helps ensure that your credit report accurately reflects your financial history. If you notice anything that seems off, you’ll want to contact the credit bureau to report a mistake. 

PRO TIP! Building your credit is easier than you think. It starts with knowing and understanding your score, creating goals, and then monitoring your credit as you take steps to build it.

3. Keep old accounts open and use them sporadically 

Your credit score is affected by your credit history as well as how long you have been building your credit. Your old accounts play a key role in defining the length of your credit history. Keep old accounts open and make sure you use them from time to time. 

4. Report your on-time rent and utility payments

Your credit is affected by the payments that you make, including rent payments and utility bills. Make sure the major credit bureaus know that you pay your rent and utility payments on time because this information can help you increase your credit score.

5. Increase your credit limit when possible  

As you pay your bills consistently, ask your credit card company for a credit limit increase. Having higher credit limits is a sign that you can be trusted to pay your bills on time. This action will translate to a higher credit score over time as well. 

6. Avoid maxing out your credit cards 

Your credit score has the potential to decrease when you max out your credit cards because your credit utilization ratio will drop considerably. Your available credit should be much higher than your credit utilization. If you do max out your credit card, make sure to pay it all off in the same billing cycle.

7. Balance your credit utilization 

It’s best if you keep your credit utilization rate at 30% or less. For example, if your credit limit is $5,000 in total, then your credit utilization balance shouldn’t exceed $1,500. 

8. Consider a credit-building loan

A credit-building loan is a type of loan specifically designed to help individuals with limited or poor credit history build up their creditworthiness. Unlike traditional loans, the primary purpose of a credit building loan is not to provide immediate funds but to demonstrate responsible borrowing behavior to credit bureaus.

So, how does a credit-building loan work? Instead of receiving a lump sum of money upfront, the loan amount is typically held in a savings account or a certificate of deposit (CD). You then make regular monthly payments on the loan, just like with any other loan. However, the payments are not used to pay off the loan but are reported to credit bureaus as on-time payments, which can help positively impact your credit history.

PRO TIP! A good credit score can lead to lower interest rates and increased borrowing power on loans and credit cards. MoneyLion offers a free and convenient way to find offers from our trusted partners to help you improve your credit.

The Power and Perks of a 900 Credit Score

A 900 credit score may seem like a lofty goal — which is why it’s not always attainable. The good news is that you don’t need a 900 credit score to have good credit. Good credit starts at around 700 and improves over time. As long as your score is within the 700 to 800 range, you should have optimistic approval odds and some leeway on negotiating lower interest rates. All in all, building good credit is a process — not a one-and-done. It’s important to stay consistent and practice smart financial habits for the long run!

FAQ

Below, you’ll find a clear overview of types of credit cards, from cashback or travel rewards cards to secured or prepaid credit cards. There is a solution to make payments easier for anyone. With help from the list below, you can choose a card that will help boost your credit score. 

MoneyLion can help you explore a wide variety of credit card options tailored to different needs and preferences.

1. Rewards credit cards

Cards that offer rewards such as cashback, points, or miles for every dollar spent can be redeemed for various benefits like travel, merchandise, or statement credits. Many of the specific credit cards below, such as travel cards, balance transfer cards, or specialty store cards, fall into the general category of rewards credit cards. You’ll find more on those rewards credit card types below.

While the credit cards with the greatest rewards are usually marketed to consumers with good to excellent credit history, there are rewards credit cards with lower bonuses for fair to good credit history as well. 

These cards may offer a signup bonus when you meet a minimum spend (usually within three months) or a higher reward rate in certain categories. 

2. Travel credit cards

Travel credit cards are designed for frequent travelers. A common feature of many travel credit cards is no foreign transaction fees, allowing you to use the card wherever your travels take you. While technically a sub-category of rewards credit cards, travel cards offer rewards and perks specifically targeted for frequent travelers. 

For example, some offer free lounge access at thousands of airport lounges or reimburse you for the cost of TSA precheck. Other common perks include free breakfast during hotel stays or free room upgrades. 

Travel credit cards also typically offer higher points or miles when you book hotels, flights, or rental cars, although some require you to do it through their dedicated shopping portal for the highest rewards. 

Popular travel credit cards include:

• Capital One Venture Rewards credit card
• The Amex Platinum
• Chase Sapphire Preferred
• Chase Sapphire Reserve
• Citi Premier℠ Card
• Wells Fargo Autograph Card
• Bilt Mastercard
• Discover it® Miles

3. Balance transfer credit cards

A balance transfer credit card is a traditional credit card, usually with an introductory or promotional 0% APR offer. These offers range from 12 to 21 months of a 0% APR, encouraging new cardholders to make a big purchase or transfer high-interest debt to the card, helping save on interest charges. 

Note that most cards charge a balance transfer fee, usually 3% to 5% of the balance transferred. That means if you transfer $5,000 in debt, you’ll typically pay a fee of $150 to $250. However, if you need a year to pay off that debt, the interest savings could be worth it. 

Popular balance transfer credit cards from March 2024 include:

• Discover it Cash Back
• Wells Fargo Reflect Card 
• U.S. Bank Visa Platinum Card
• Citi Diamond Preferred Card
• Citi Double Cash Card
• Citi Simplicity Card
• Bank of America Customized Cash Rewards credit card

4. Secured credit cards

Secured credit cards are geared towards individuals with limited or poor credit history. These cards require a security deposit as collateral and can help establish or rebuild credit when used responsibly. Secured credit cards typically have lower credit limits than traditional credit cards. 

While you could technically put a deposit of up to $10,000 on a secured credit card, most consumers don’t go above $1,000. And there’s usually no reason to unless you want to make a large purchase on the secured credit card. 

Many major credit card issuers offer a secured credit card option, including:

• Discover it Secured Credit Card
• U.S. Bank Cash+ Secured Visa® Card 
• Capital One Quicksilver Secured Cash Rewards Credit Card
• Bank of America Unlimited Cash Rewards Secured Credit Card 

5. Student credit cards

Student cards are tailored for students with limited credit history. These cards typically offer features like lower credit limits, no annual fees, and rewards geared toward student spending habits. A student credit card is an excellent option for a first credit card. With no annual fees, you could use it to build your credit history and keep it open to maintain your length of credit history—helping to build your credit score over time. 

Good student credit cards include:

• Discover it Student Cash Back
• Bank of America Customized Cash Rewards credit card for Students
• Capital One Quicksilver Student Cash Rewards Credit Card
• Capital One SavorOne Student Cash Rewards Credit Card
• Bank of America Travel Rewards credit card for Students
• Bank of America Unlimited Cash Rewards credit card for Students

6. Business credit cards

Business credit cards, as the name implies, are designed for small to medium-sized businesses and entrepreneurs. These cards offer perks such as expense tracking tools, employee cards, and rewards for business-related spending. A business credit card can help small businesses separate personal and business expenses.

In addition to offering better rewards than personal credit cards, business credit cards are one of the simplest ways for businesses to access capital. They give companies of all sizes a simplified solution for easily reviewing transactions, tracking expenses, and documenting activity. 

Some of the best business credit cards include:

• Ink Business Unlimited Credit Card
• The Business Platinum Card from American Express
• Venture X Business
• Capital One Spark Miles Select for Business
• Ink Business Cash Credit Card

7. Specialty store credit cards

With specialty store cards, retailers partner with a lending bank to offer a revolving line of credit to make purchases at that specific retailer. These might include retailers such as major department stores or clothing stores, gas stations, or other co-branded cards.

A common feature of a specialty store credit card is that it typically offers better rewards, points, or discounts when used at that retailer. For example, gas cards usually offer rewards or discounts on gas purchases. 

Sometimes, a store credit card is limited to use at its issued retailer, although many store cards can be used at other retailers without the same rewards.

Some of the biggest retailers offer specialty store credit cards. The most popular specialty store credit cards as of April 2024 include: 

• Capital One Walmart Rewards Card
• Costco Anywhere Visa Card by Citi
• Amazon Prime Visa
• Target RedCard
• Lowe’s Advantage Card
• Gap Good Rewards Mastercard
• Home Depot Consumer Credit Card
• My Best Buy Visa Card
• Amazon Business American Express Card

8. Cashback credit cards

Another subset of rewards credit cards are cashback cards that offer a percentage of all eligible purchases as cashback. This allows you to access direct monetary rewards redeemed as statement credits, checks, or deposits into bank accounts. Most cashback credit cards offer a base rate of 1% cashback, but some may offer higher rates in certain categories or with other conditions. 

For example, the Citi Double Cash Card offers 1% cashback on purchases and an additional 1% cashback when you pay off those purchases, while the Citi Custom Cash card offers 5% cashback in your highest spend category. 

Other popular cashback credit cards include:

• U.S. Bank Cash+ Visa Signature® Card
• Discover it Cash Back
• Chase Freedom Flex
• Bank of America Customized Cash Rewards credit card
• Chase Freedom Unlimited
• Wells Fargo Active Cash Card

9. Low-interest credit cards

Cards with lower ongoing interest rates are rare, but you can find them. These cards are suitable for cardholders who carry a balance and want to minimize interest charges over time. Of course, paying off your credit card in full each month can help you avoid interest charges altogether; a low-interest credit card is a reasonable solution if you have to carry a balance from month to month. Some of these also come with a 0% APR balance transfer offer. 

Remember that these cards often still have higher interest rates than a personal loan (after any introductory period), so consolidating debt could be a better solution if you have to carry the debt long-term.

Options for low-interest credit cards include:

• Chase Slate Edge
• Citi Diamond Preferred Card
• Blue Cash Everyday Card from American Express
• Wings Financial Visa Platinum Credit Card
• The Plum Card from American Express

10. Premium credit cards

Premium credit cards are high-end cards with exclusive perks and benefits, such as concierge services, luxury travel amenities, elite status with hotels and airlines, and high reward rates. However, you pay for these premium features as they also often come with substantial annual fees. However, if you will use the services offered, the higher fees can be worth it.

Top premium and luxury credit cards include:

• The Platinum Card from American Express
• U.S. Bank Altitude Reserve Visa Infinite Card
• Hilton Honors Aspire Card from American Express
• Chase Sapphire Reserve
• Capital One Venture X Rewards Credit Card
• Delta SkyMiles Reserve American Express Card
• United Club Infinite Card

11. Prepaid credit cards

Prepaid credit cards are loaded with funds by the cardholder and can be used for purchases like a regular credit card, but they are not tied to a line of credit. They’re often used by individuals who want to control their spending or those who don’t qualify for traditional credit cards. You can get prepaid credit cards directly from Visa or Mastercard, as well as retailers like Target and Walgreens. 

How to choose the right type of credit card

Choosing the right type of credit card requires careful consideration of your financial goals, spending habits, credit history, and personal preferences. While it requires some research, it’s not rocket science. Consider a few key criteria:

• Are you in the market for a reward credit card, or do you need to build credit with a secured, prepaid, or student card?
• If you want a rewards credit card, do you know your credit score? 
• Do you qualify for a card that requires good to excellent credit?
• Do you prefer cashback, travel rewards, or store rewards?
• Do you want a card with no annual fee, or do the rewards justify the annual fee for your lifestyle?
• Of course, if the credit card is for your business, you’ll want to look at the best business credit card offers to narrow down your options. 

Based on those criteria, you can usually narrow down the type of credit card for your current needs. While it’s usually not a good idea to apply for more than one credit card every three to six months, there’s no reason you can’t apply for another later. For example, you might choose a travel rewards credit card now and a cashback credit card later, or vice-versa.

Should you have multiple credit cards?

Credit cards of all types offer a practical way to make purchases online and in stores. Choosing different types of credit cards at different times can make sense for many consumers and for building a strong credit score at different phases of life, with responsible use. You could use the cards for specific rewards, to maximize signup bonuses, or to separate business and personal finances. 

Credit cards also make it easier to track expenses and get a clear picture of spending categories. Choosing the right credit card for your needs is a personal decision, but regardless of the card you choose, it’s important to follow good credit-building habits. Find more tips to use credit wisely or learn to improve your credit score in three months to access more credit card options.

FAQ 

Do you need a credit card to rent a car?

It depends. If you don’t have a credit card, there are still ways to rent a car. Major car rental companies offer customers a few options when it comes to booking and paying for rental cars. Options can vary by location. Most rental car companies ask for a deposit to protect their assets. This can include a hold on a debit or credit card or a cash deposit. 

Most rental car companies prefer a credit card because it allows them to block the full amount of the rental insurance deductible, which can be $500 – $4,000. 

Why do car rental companies require a credit card?

Rental car companies require a credit card to prove you’re not a financial risk. It is a way for them to ensure that they can recoup their costs if the vehicle is damaged or you don’t return it on time. 

In addition, rental car companies typically can’t pull funds from a debit card if the account has insufficient funds. This creates additional liability for rental car companies. To get around this, some rental car companies will take an additional payment from a debit card or place a hold that is released after the car is returned in good condition. 

How to rent a car without a credit card: 5 steps

If you want to rent a car without a credit card, the main options to consider are below. 

1. Check with different car rental companies on their policies regarding debit cards

Car rental policies vary by location. Different rental car companies have different policies for different locations. Most U.S.-based rental car companies don’t allow you to use a debit card at airports. Many will allow you to rent a car with a debit card at other locations. You may need to provide additional documentation if you want to rent a car with a debit card. 

2. Consider renting from smaller, local car rental companies instead of larger chains

Many smaller rental car companies may be willing to accept more flexible payments. Some will accept debit cards, cash, or a check. You will often still need to make a deposit that’s refunded when you return the car in good condition. Be sure to check with the companies ahead of time for policies at each location. 

3. Look for car rental companies that offer prepaid rental options or cash deposits

Some rental car companies accept a prepaid rental option or a cash deposit. In this case, the rental car company will retain cash, a hold, or a transfer from your bank account that will be automatically returned when the vehicle is returned according to the contract you signed. Deposits or holds vary by company and rental duration but range from an average of $200 to $800. 

4. Find a friend or family member who is willing to use their credit card for the rental and reimburse them

If a friend or family member is willing to let you use their credit card to rent a vehicle, you can reimburse them via cash, check, or bank transfer. Keep in mind that sometimes the rental car company will ask to see the card at the rental counter, so be sure to ask what your options are if you are using someone else’s card. 

5. Use a third-party booking website that allows alternative forms of payment, such as PayPal or Apple Pay

Some third-party booking sites let you pay with Paypal, Apple Pay or Google Pay. All of these systems allow you to link your bank account directly. Rental companies may treat these as a viable alternative to credit cards and treat them as though you’d paid by credit card. 

What to know about car rentals with a debit card: 5 factors

There’s good news for people who want to rent cars without a credit card: Most well-known car rental companies let you book and pay for a rental car using a debit card. 

But car rental companies run the risk of losing money if you don’t have adequate funds available in your bank account. For this reason, they often require you to meet certain requirements to rent a car with a debit card.

Here are some requirements car rental companies might impose if you pay with a debit card: 

1. Additional documentation

Car rental companies can require additional identification and proof of travel plans when you book with a debit card. Exact policies can depend on your car rental company, so make sure you research their exact policies.

2. Authorized hold

When you use a debit card to book a rental, the car rental company may place an additional hold on your funds. Dollar places an additional $500 hold when you secure a reservation with a debit card. The hold on your funds keeps you from spending your money on something else. 

3. Limited selection

While most car rental companies let you rent a car using your debit card, the type of car you can book might be limited. In some cases, you can’t book a premium vehicle or convertible. Each rental car company will have unique policies about selection. Make sure to thoroughly research or get in touch with your car rental company about their specific terms. 

4. Credit checks

Some car rental companies will check your credit if you want to book a rental using a debit card.This isn’t always the case, but you’ll want to be in the know when it comes to your car rental company’s policies to avoid any unforeseen hiccups. 

5. Car rental with a prepaid card 

When booking a car rental without a credit card, most companies accept prepaid cards as payment at the end of the rental. But they won’t accept prepaid cards to book a car rental. 

Which rental car company does not require a credit card?

Customers may be able to obtain car rentals that don’t require a credit card at the following major car rental companies: 

• Alamo Rent A Car
• Avis Car Rental
• Budget Rent a Car
• Dollar Rent A Car
• Enterprise Rent-a-Car
• Hertz Corp.
• National Car Rental
• Payless Car Rental
• Sixt SE
• Thrifty Car Rental
• Turo

Can I use cash for a rental car?

Most car rental companies let you pay cash for the initial rental and for any additional fees when you return the car, but you will still need to use a credit or debit card to secure the rental. Not every rental car location accepts cash. It’s a good idea to call the location to confirm if it will accept cash before booking the car rental.

What to know about renting a car without a credit card

You can get a car rental without a credit card, but you may encounter a few hurdles along the way. 

1. You’ll need a balance on your debit card 

Many car rental companies require a security deposit to hold your reservation with a debit card. They often need to verify that you have enough money in your account for a security deposit. 

When you pick up your car, the rental company might place an additional hold for the amount you owe at the end. These funds won’t be available until the company releases the hold. If you’re tight on cash, the hold on funds may keep you from meeting other financial obligations. 

2. You’ll need to bring all the required documents

Most car rental companies will ask for even more documentation when you book a rental with your debit card. If you cannot provide these documents, you may not be able to rent a car without a credit card. 

Most airline locations require two valid forms of identification and proof of your return travel ticket that coincides with the rental vehicle return time. You can also expect to be required to provide the name and address on your driver’s license to match your current home address. A car rental without a credit card can be difficult if it doesn’t match.

3. You’ll need to meet age requirements

Age requirements vary based on the car rental company but often require renters to be at least 21 years old or pay for premium insurance. For example, you must be at least 21 to rent a car using a debit card at Avis.

But you can rent a car through Dollar if you are 20 (or 18 in New York or Michigan), have a valid debit card, and have a driver’s license that’s been in good standing for at least one year. Some Enterprise locations allow renters between the ages of 21 and 24 to rent a car with a valid debit card as well as a valid driver’s license. 

4. You may undergo a credit check

Some rental car companies may require a credit check to secure a car rental reservation with a debit card. If your credit score does not meet the requirements of the car rental company, you may be unable to rent a car with them. You can know for sure by contacting the car rental company and asking about their unique policies. 

5. Double-check whether the car is manual or automatic

Most car rental companies in the U.S. only offer vehicle rentals for cars with automatic transmissions. Europe and other international locations often charge a premium for automatic cars. If you’re renting internationally, it’s a good idea to ensure your car isn’t manual unless you prefer manual transmissions. 

If you’ve only ever driven automatic cars, it can be difficult to make the switch to manual. Make sure you have some driving experience with manual cars before taking out a manual car rental.

Find a car rental that does not require a credit card

Renting a car without a credit card is possible with a little research and planning ahead of time. That and third-party booking sites offer more options than ever to secure a car rental without a credit card.

FAQ

Take a look at this guide, as we go over how to remove an old address from your credit report.  

PRO TIP! Building your credit is easier than you think. It starts with knowing and understanding your score, creating goals, and then monitoring your credit as you take steps to build it. MoneyLion is here to help.

Can you remove an old address from your credit report?

Yes, you can remove addresses from your credit report as long as it isn’t currently associated with any of your accounts. Usually, you’ll need to file a dispute with the credit bureaus. Each of the three credit bureaus — Experian, Equifax, and Transunion — have ways to dispute a charge online or through the mail. Experian, for example, allows you to initiate a dispute online directly at the Experian Dispute Center. You may need to send an address removal letter for credit reporting. 

Not sure which addresses are showing up on a credit report? You can check them at AnnualCreditReport.com. 

Does removing an old address impact your credit score?

No. Removing addresses from the credit report won’t impact your credit score. But incorrect identifying information can be a sign that someone else’s file has been mixed up with yours. Or, more seriously, incorrect information can be a red flag of identity theft. 

Keep in mind that the addresses themselves aren’t a problem. Address or other personal identifying information won’t impact your credit score. But an incorrect address can be a sign of a current (or future) problem. 

Reasons your address may not update on your credit report

If you see an old or different address on your credit report, there are several harmless explanations. An old joint account or being an authorized user on someone else’s account can be reasons you see an unfamiliar address on your credit report. Here are some other reasons your address may not update on your credit report. 

1. You’ve moved recently

If you’ve recently moved, your old address may still show up on your credit report. In that case, you don’t need to do anything. Your mailing address and physical address will be automatically updated after creditors report to the credit bureaus. A delay of 30 to 60 days can be normal. 

2. A joint account user is associated with another address

If someone adds you as an authorized user to their credit card, their address will show up on your credit report. Likewise, if you add an authorized user with a different address, that address will also appear on your credit report. An authorized user’s address will not affect your credit score, although their account activity can. 

3. The address is associated with an account

If the address is associated with an account — even a forgotten credit card — it will remain on your credit report as a current address. If you’ve received mail for an account at the address, it will most likely show up on your credit report as a past address. That includes Post Office boxes, work addresses, or temporary mailing addresses. Even if the address is no longer associated with any account, it will remain on the record as information to verify your identity. 

4. Failure to notify all creditors

If you have updated your address with some creditors but not others, the ones who still have your old address will continue to report that information until you provide them with the updated address details. It is important to inform all relevant creditors to ensure consistency in your credit report. Maintaining uniformity in your address information across all creditors helps prevent confusion and potential errors and ensures that your credit report accurately reflects your current situation. This consistency is important for lenders and creditors when assessing your creditworthiness, as discrepancies in address information could lead to complications in the approval process for loans, credit cards, or other financial transactions. 

5. Administrative errors

Occasionally, administrative errors can occur within the credit reporting system itself, resulting in the failure to update address information accurately. Administrative errors often stem from simple data entry mistakes. It’s possible that a human or computer error during the data input process caused your new address information to be incorrectly recorded or not updated at all. These errors can include typographical errors, transposition of numbers or letters, or system glitches.

These errors may require contacting the credit reporting agency directly to correct the information.

Why it’s important to keep your credit report updated

Keeping your credit report updated is important to protect your personal information. When you check the credit report, you’re able to ensure that the information on file is correct and see what creditors see when evaluating your account. It’s worth regularly checking your credit report as a part of your financial planning. 

This allows you to spot and dispute inaccuracies and remove addresses from the credit report as well as track your credit score before applying for a mortgage or other loan. By making a habit of checking your credit report, you can also spot signs of identity theft and take steps to protect your accounts. 

How to dispute an incorrect address on your credit report

If there is an address on your credit report that you or authorized users never used as an address, you can ask for it to be removed from the credit file. To do this, contact the credit reporting agency. You may also need to contact creditors. You may need to send an address removal letter for credit. Here’s how:

1. Contact the credit reporting agency

There are three main credit bureaus: Experian, Equifax, and Transunion. The incorrect address may show up on one credit file or with all three credit bureaus. You may be able to call the credit reporting agency to ask it to remove addresses from the credit report. 

Here are the phone numbers:

Experian: 888-397-3742 

Equifax: 888-378-4329

TransUnion: 888-909-8872

In the case of incorrect information, you’ll need to explain that the address and related information was never associated with you and must be a mistake. If the credit bureau is not willing to remove the old or incorrect address, you still have the option to request that creditors remove the address or file a dispute with the credit bureau. 

2. Contact creditors associated with the old address

Creditors associated with the old address can update the address information in your file. This will automatically update current address information with the creditors they report to. Even if your current address is updated, old addresses can remain in your credit file. 

3. File a dispute

If you end up with a late payment on your credit report because of a wrong address, discuss this with your creditor. If calling to dispute the payment doesn’t work, you’ll need to file a dispute. The Consumer Financial Protection Bureau provides detailed information on how to file a dispute with each of the credit bureaus. You can file an online dispute with Equifax, Experian, or TransUnion, or you can mail in a dispute form. 

If you think you’re a victim of identity theft, government resources are available through the Federal Trade Commission. 

4. Follow up on your dispute

After filing a dispute, it’s important to follow up on the progress. Credit reporting agencies typically have a specific time frame within which they must investigate and resolve disputes, often around 30 days. During this period, they’ll contact your creditor to verify the accuracy of the information in question. It’s advisable to maintain communication with the credit reporting agency during this process to ensure your dispute is being actively addressed.

5. Monitor your credit report to ensure the removal of old addresses

Continuing to monitor your credit report is crucial to confirm that outdated addresses have been successfully removed. Credit bureaus are required to update your report with corrected information following the resolution of a dispute. Regularly reviewing your credit report, allows you to verify that these changes have been implemented and that your credit profile accurately reflects your most accurate information.

Important Tip! MoneyLion offers a free and convenient way to find offers from our trusted partners to help you improve your credit — such as credit monitoring, credit report disputes, and getting credit by paying bills. A good credit score can lead to lower interest rates and increased borrowing power on loans and credit cards. 

How to maintain a clean credit report

Maintaining a clean credit report is essential for securing favorable financial opportunities and ensuring your creditworthiness. Here are key steps to help you achieve and preserve a pristine credit profile:

1. Regularly check and update personal information:

Start by emphasizing the importance of regularly reviewing your credit report for accuracy. Check that all personal information, such as your name, address, and Social Security number, is up to date and correct. Inaccuracies or discrepancies in this information can lead to credit reporting errors. Address these promptly by contacting the credit bureaus to request corrections.

2. Sign up for credit monitoring services

Consider enrolling in credit monitoring services. These services provide ongoing, real-time access to your credit reports and alert you to any significant changes or suspicious activity. Early detection of errors or unauthorized transactions can help you address issues promptly, minimizing potential damage to your credit.

3. Prevent incorrect address information

To avoid incorrect address information on your credit report:

• Notify creditors and lenders of address changes: Whenever you move, promptly update your address with all relevant creditors and lenders. This ensures they have your current information and reduces the chance of outdated addresses being reported.

• Monitor your mail: Keep an eye on the mail you receive to verify it corresponds to your address. If you receive mail at an incorrect address, follow up with the sender to correct it.

• Opt for electronic statements: Whenever possible, opt for electronic statements and notifications from creditors and financial institutions. This minimizes the chance of paper mail being sent to outdated addresses.

• Regularly review your credit report: Continuously monitor your credit report to promptly detect and address inaccuracies or outdated information, including addresses. Report discrepancies to the credit bureaus for correction.

Keeping your credit report current and error-free

Addressing inaccuracies or outdated addresses on your credit report is easier than you might think. If it’s merely an old address, there’s usually no dire need for action as it serves as a means to verify your identity. Although you’ll want to make sure credit bureaus have your current information, the outdated address isn’t going to impact your score. But if you spot an incorrect address, it’s recommended you immediately contact the credit bureau to fix the situation as this could signal identity theft.

In either scenario, getting into the habit of routinely monitoring your credit report for discrepancies is a wise practice. This proactive approach not only saves you time and hassle but also prepares you for important financial milestones, such as securing a mortgage or other credit opportunities. Keeping your credit report clean and accurate is a key step in maintaining a solid financial foundation.

FAQ

And keep reading to the end to see how you can search offers to help build credit from our trusted partners through MoneyLion!

Credit card liability explained

Credit card liabilities refer to the financial obligation you create when you use a credit card. A liability is a debt with an obligation to repay it. All credit card purchases create a liability to repay the borrowed funds. As long as you make the charges and repay them yourself, there are no fraud issues. 

If a hacker or criminal gets hold of your credit card information, you’ll end up with a fraudulent credit card liability. Fraud can happen in several ways. Cybercriminals can obtain credit card details by hacking into businesses holding your information. Data breaches have become increasingly concerning in recent years, exposing login credentials, home addresses, financial account numbers, and other sensitive information. 

In addition, hackers regularly attempt to use phishing emails to steal people’s information while posing as reputable brands. These emails have become increasingly sophisticated and more difficult to spot, especially when there’s an urgent call to log into your bank account to resolve an issue. 

When merchants pay for credit card fraud

The bank that issues the credit card will cover most credit card fraud issues, but sometimes the bank rules that it is merchant credit card fraud, making the merchant responsible. Small business owners using outdated swipe payment terminals may have to make up for the difference. Merchants are also responsible for credit fraud charges if the hacker makes an unauthorized online purchase. Sometimes banks suggest merchant responsibility for stolen credit card information if it is due to poor security or outdated systems.

As a credit card holder, you’re also protected by the Fair Credit Billing Act, or FCBA, which states that if your credit card has an unauthorized transaction or is stolen, you will only be liable for a maximum of $50. If your card is stolen and you report the theft before any loss occurs, your liability drops to $0.

When cardholders pay for credit card fraud

Cardholders are rarely responsible for credit card fraud. Even under these rare circumstances when you’re considered liable, FCBA limits your liability to $50. Some banks have zero liability policies that waive the $50 loss, protecting you from the fraudulent behavior. However, you must report suspicious credit card activity within 60 days of it appearing on your billing statement to avoid paying for the fraudulent activity.

What about cases of debit card fraud?

Debit cards do not have the same built-in protections as credit cards, thus carrying a greater risk of being liable for fraudulent charges. To protect yourself, immediately reporting debit card fraud can help you avoid costs, but it’s not a guarantee. Since debit cards deduct funds directly from your bank account, your bank account likely won’t be replenished immediately, if at all. Freezing your debit card can limit the damage as you wait to see what will happen to the stolen funds. Stay closely in touch with your bank if you’re in this situation.

What to do if credit card fraud happens to you 

It’s essential to act quickly if you detect suspicious credit card activity. Debt can accumulate, and you only have 60 days to report fraudulent spending to your bank if you want to help prevent the amount of money you could be out. You should review your finances to minimize the likelihood of becoming a victim of credit card fraud. 

Notify your credit card company

Create a list of suspicious credit card transactions and notify your card issuer about the activity. Your credit card company can help reduce the damage and cover you for fraudulent activities. 

Remove unauthorized charges

Consumers can request that their credit card providers remove unauthorized charges. This step prevents credit fraud charges from harming your payment history, a critical component of your credit score.

Close the account

If a hacker has your credit card details, they won’t stop spending unless you hit the brakes. You can ask the credit card issuer to send you a new credit card with a new number and cancel the previous card. This maintains your credit history and keeps the credit account open but stops the hacker from using the card number they have. In most cases, the issuing bank will send the new card to you worldwide. This option shouldn’t affect your credit score. 

Of course, you can also close the credit card account, but this can hurt your credit length, especially if it’s the oldest credit line you have. You can ask your bank whether it’s necessary and worth the short-term credit downside to keep your finances safe. 

Double-check your other accounts

Some hackers don’t stop with your credit card. They can also use your personal information to take out loans and lines of credit. If someone steals your credit card information, you should check your credit report, as it will provide a snapshot of your financial activity. You should also immediately act if you see anything suspicious on another credit account. 

Placing a fraud alert on your credit or, better still, temporarily freezing it can keep your credit safe. You can learn how to place a security freeze on your credit accounts and lift it when you’re sure your information is safe. 

Open a new account

If you freeze your credit, you won’t be able to apply for any new credit card accounts. However, if the fraud was isolated to one credit card, you may not need to freeze your credit. In that case, you can open a new account if needed. You will still be responsible for any credit card debt on the previous card outside of any suspicious activity. You can use the new credit card for purchases and continue building your credit score. 

Don’t delay

In the case of credit card fraud, it’s important to act as quickly as possible. You must notify the bank about suspicious activity within 60 days for financial protection. Dealing with the issue now will minimize the damage, and you may discover hackers have obtained additional information after reviewing your credit report. If needed, you can contact each of the three credit bureaus to let them know you are a victim of fraudulent activity.  However, it’s usually enough to contact your bank and request a new credit card. 

If you do check your credit reports, you can also remove old addresses (if necessary) and double-check all accounts listed in your name to confirm that the hacker didn’t open a new account. 

How to protect your credit card from fraud

Protecting your credit card from fraud includes learning online security and other best practices for credit card security. Here are the key steps:

Don’t give out your info

Never give out your credit card information, Social Security Number, or other personal financial details to anyone who contacts you by phone or email. Instead, contact your bank directly with the phone number on the back of your credit card or log in to the bank’s website app by navigating there directly. 

Avoid clicking links in emails asking you to input information like personal details, even if they look legitimate! Of course, reading an informational article linked in an email without logging in won’t jeopardize your security. But one of the most common phishing scams is when scammers impersonate banks or other financial institutions with, in some cases, impressively accurate replicas of their emails. Double-check the sender’s email address to see if it looks legitimate. Better yet, contact the bank directly through your regular channel such as a phone number, website, or app. 

Avoid public WiFi

While everyone uses public Wi-Fi occasionally, avoid any sensitive financial transactions while you’re connected to it. This includes making online purchases that require you to enter your credit card information. If you have to make transactions on public Wi-Fi, use a virtual proxy network (VPN) to protect your information. In addition to Wi-Fi in public places, hotel Wi-Fi can be a hotspot for hackers looking to steal information. Learn more about how hackers can steal your information.

Choose to tap

Most current credit cards and credit card readers allow you to tap the card without inserting it. This helps prevent hackers from trying to manually steal your credit card information when you insert it into a card reader. While rare, this has happened, especially at gas stations.  

Use malware protection 

Installing well-reputed malware protection and scanning software on your computer and phone can prevent viruses from hackers that could steal your sensitive information.

Malware protection software is downloaded directly onto your computer or other device. It will periodically scan your computer to identify, quarantine, and eliminate any malware that hackers can use to access your information or disrupt your computer’s functioning, keeping your systems secure.

Keep your card safe

Store your credit card securely where someone couldn’t easily steal it or take a photo. If you have multiple credit cards, consider keeping some at home and avoid carrying all of them in case your wallet or purse is stolen.

Monitor credit reports and card statements

Finally, habitually check credit card statements each month for any activity you don’t recognize. Checking credit reports regularly can also alert you to any account openings or other unusual activity. 

Final tips to protect yourself from credit card fraud

While data breaches are increasing, the resources available to deal with them are also growing. If you’re a victim of credit card fraud, act quickly to contact your issuing bank to remove the charges and cancel the card number. Then, check your credit reports and freeze your credit if you suspect your information is compromised. 

In addition to the best credit protection practices, you can consider trusted identity theft monitoring software like CreditScoreIQ. MoneyLion’s app helps you track your credit score and notifies you about changes in your credit so you stay on top of your credit and any charges linked to your name. 

Need to boost your credit score? Learn how to help improve your credit score in three months, and get more tips to manage credit cards responsibly!

FAQ

After seven years, unpaid credit card debt falls off your credit report. The debt doesn’t vanish completely, but it’ll no longer impact your credit score.

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Does credit card debt go away after 7 years?

Most negative items on your credit report, including unpaid debts, charge-offs, or late payments, will fall off your credit report seven years after the date of the first missed payment. However, it’s important to remember that you’ll still owe the creditor. 

7-year credit rule and your credit score

Under the Fair Credit Reporting Act, in most cases, debts can only appear on your credit report for seven years. After that period is up, the debt can no longer be reported. 

Also, if you’ve had a delinquent account on your credit report, creditors can hold the debt against you. Keep in mind that some actions can restart the seven-year clock, such as making a partial payment or accepting a settlement offer. 

What happens after 7 years of not paying debt?

Although the debt won’t be factored into your credit score after seven years, there are still consequences. When you stop paying your debt, the creditor will start charging late fees and interest will continue to accumulate, increasing the balance you owe. 

The creditor will report the debt as unpaid and continue to report the debt to the credit bureaus. Eventually, the creditor may sell the debt to a third-party debt collector for enforcement. 

Can I start my credit report over after 7 years?

Your credit report doesn’t technically start over after seven years. The seven-year starting point will vary for each negative item and is based on the date of your first missed payment. Negative items will automatically fall off after seven years, which can give you the ›opportunity to establish and rebuild your credit. 

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Can I remove negative items from my credit report before 7 years?

You can’t remove negative items from your credit report before seven years have passed. Your credit report is a record of your entire payment history, so if you pay your debt in full, it will show as being paid, which might help your score. It won’t remove the late payment history. 

If there’s a discrepancy or an error on your account, you have the legal right to file a dispute. If you notice something reported incorrectly on your credit report, contact each of the major credit bureaus: Equifax, TransUnion, and Experian. 

From there, you can begin the process of disputing information on your report. They’ll launch an investigation to determine whether there are any errors in the balance, your payment history, specific dates, ownership, or other factors. If the investigation reveals errors, they will be corrected and updated on your report.

Will unpaid credit card debt after 7 years affect my ability to apply for loans or credit?

Unpaid credit card debt that is more than seven years old shouldn’t affect your ability to apply for loans or credit. The reason for this is that after seven years, credit reporting companies may no longer report on unpaid credit card debt.

Lenders and creditors may still consider other factors when evaluating your loan or credit application. This is especially true when it comes to your current financial situation. At a minimum, you may need to show that you have sufficient income to repay new debts you may take on.

You should also anticipate that lenders will examine your credit score and overall credit history. Even if your old unpaid credit card debt does not show up on your credit report, they will still assess your creditworthiness based on other debts, payment history, and other negative marks. It will still be important to have a good credit score to improve your chances of being approved for new loans or credit.

How to avoid incurring credit card debt for 7 years

If you’re looking to avoid incurring credit card debt for the next seven years or longer, it’s important to develop good financial habits and make smart decisions when it comes to using your credit cards. Follow these tips to help you stay debt-free and build a solid financial future.

Consider debt consolidation

Debt consolidation may help simplify your debt repayment process and allow you to save money on interest payments. By obtaining a personal loan for debt consolidation, you can pay off all your high-interest credit cards and consolidate them into one manageable loan with a lower interest rate. 

As long as the interest rates on your new loan are less than on your existing debt and other costs such as fees balance out, you may be able to reduce the overall interest you pay, allowing you to become debt-free sooner.

Consider debt relief

Debt relief options like debt settlement or bankruptcy may help you escape overwhelming debt that’s impacting your finances and quality of life. Pursuing debt relief allows you to renegotiate or discharge certain debts so you can get a fresh start and move forward without the burden of unmanageable debt weighing you down.

One solution is to explore Accredited Debt Relief Options from MoneyLion. Have $20k+ in Credit Card Debt?

• Reduce your monthly payment by 40% or more
• Get out of debt in 24-48 months
• 100% free, no risk consultation
• A+ Better Business Bureau rating

Create a budget

One of the most important things you can do is to create a budget and stick to it. Knowing how much money you have coming in and going out will allow you to allocate funds and avoid overspending. Tracking your expenses also makes it easier to identify areas where you can cut back and save money.

Cut unnecessary expenses

One of the most practical ways to avoid credit card debt is by reducing unnecessary expenses. To accomplish this, start by analyzing your spending patterns and identifying areas where you can make budget cuts.

Be mindful of daily habits like eating out, online shopping, or monthly subscriptions. By cutting down on these spending areas, you can redirect those funds toward paying off debts or saving for emergencies.

Negotiate lower interest rates

Many credit card issuers may be willing to negotiate if you have a good repayment history or if you mention the possibility of transferring your balance to a competitor with a more favorable rate. Lower interest rates mean a significant reduction in the overall cost of debt, enabling you to pay off your credit cards faster and avoid credit card debt for a longer period.

Understanding the impact of credit card debt after the 7-year mark

Credit card debt doesn’t go away, but the consequences of credit card debt can only last for seven years. After this time has passed, credit bureaus may be able to give you a fresh start and delete the debt from your report. Payment history is the largest factor of a credit score, so removing old credit card debt can have a major impact, boosting your score significantly. To avoid future debt, you can try debt consolidation. It simplifies your repayment process and saves you money on interest payments.

FAQ 

After seven years, unpaid credit card debt falls off your credit report. The debt doesn’t vanish completely, but it’ll no longer impact your credit score.

MoneyLion offers a service to help you find personal loan offers based on the info you provide, you can get matched with offers for up to $50,000 from top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you. You can also use the loan funds to pay off other existing debts.

Does credit card debt go away after 7 years?

Most negative items on your credit report, including unpaid debts, charge-offs, or late payments, will fall off your credit report seven years after the date of the first missed payment. However, it’s important to remember that you’ll still owe the creditor. 

7-year credit rule and your credit score

Under the Fair Credit Reporting Act, in most cases, debts can only appear on your credit report for seven years. After that period is up, the debt can no longer be reported. 

Also, if you’ve had a delinquent account on your credit report, creditors can hold the debt against you. Keep in mind that some actions can restart the seven-year clock, such as making a partial payment or accepting a settlement offer. 

What happens after 7 years of not paying debt?

Although the debt won’t be factored into your credit score after seven years, there are still consequences. When you stop paying your debt, the creditor will start charging late fees and interest will continue to accumulate, increasing the balance you owe. 

The creditor will report the debt as unpaid and continue to report the debt to the credit bureaus. Eventually, the creditor may sell the debt to a third-party debt collector for enforcement. 

Can I start my credit report over after 7 years?

Your credit report doesn’t technically start over after seven years. The seven-year starting point will vary for each negative item and is based on the date of your first missed payment. Negative items will automatically fall off after seven years, which can give you the ›opportunity to establish and rebuild your credit. 

Considering a way to build your credit? Join MoneyLion WOW membership and apply for up to a $1,000 Credit Builder Loan with a competitive rate and no hard credit check*.

Can I remove negative items from my credit report before 7 years?

You can’t remove negative items from your credit report before seven years have passed. Your credit report is a record of your entire payment history, so if you pay your debt in full, it will show as being paid, which might help your score. It won’t remove the late payment history. 

If there’s a discrepancy or an error on your account, you have the legal right to file a dispute. If you notice something reported incorrectly on your credit report, contact each of the major credit bureaus: Equifax, TransUnion, and Experian. 

From there, you can begin the process of disputing information on your report. They’ll launch an investigation to determine whether there are any errors in the balance, your payment history, specific dates, ownership, or other factors. If the investigation reveals errors, they will be corrected and updated on your report.

Will unpaid credit card debt after 7 years affect my ability to apply for loans or credit?

Unpaid credit card debt that is more than seven years old shouldn’t affect your ability to apply for loans or credit. The reason for this is that after seven years, credit reporting companies may no longer report on unpaid credit card debt.

Lenders and creditors may still consider other factors when evaluating your loan or credit application. This is especially true when it comes to your current financial situation. At a minimum, you may need to show that you have sufficient income to repay new debts you may take on.

You should also anticipate that lenders will examine your credit score and overall credit history. Even if your old unpaid credit card debt does not show up on your credit report, they will still assess your creditworthiness based on other debts, payment history, and other negative marks. It will still be important to have a good credit score to improve your chances of being approved for new loans or credit.

How to avoid incurring credit card debt for 7 years

If you’re looking to avoid incurring credit card debt for the next seven years or longer, it’s important to develop good financial habits and make smart decisions when it comes to using your credit cards. Follow these tips to help you stay debt-free and build a solid financial future.

Consider debt consolidation

Debt consolidation may help simplify your debt repayment process and allow you to save money on interest payments. By obtaining a personal loan for debt consolidation, you can pay off all your high-interest credit cards and consolidate them into one manageable loan with a lower interest rate. 

As long as the interest rates on your new loan are less than on your existing debt and other costs such as fees balance out, you may be able to reduce the overall interest you pay, allowing you to become debt-free sooner.

Consider debt relief

Debt relief options like debt settlement or bankruptcy may help you escape overwhelming debt that’s impacting your finances and quality of life. Pursuing debt relief allows you to renegotiate or discharge certain debts so you can get a fresh start and move forward without the burden of unmanageable debt weighing you down.

One solution is to explore Accredited Debt Relief Options from MoneyLion. Have $20k+ in Credit Card Debt?

• Reduce your monthly payment by 40% or more
• Get out of debt in 24-48 months
• 100% free, no risk consultation
• A+ Better Business Bureau rating

Create a budget

One of the most important things you can do is to create a budget and stick to it. Knowing how much money you have coming in and going out will allow you to allocate funds and avoid overspending. Tracking your expenses also makes it easier to identify areas where you can cut back and save money.

Cut unnecessary expenses

One of the most practical ways to avoid credit card debt is by reducing unnecessary expenses. To accomplish this, start by analyzing your spending patterns and identifying areas where you can make budget cuts.

Be mindful of daily habits like eating out, online shopping, or monthly subscriptions. By cutting down on these spending areas, you can redirect those funds toward paying off debts or saving for emergencies.

Negotiate lower interest rates

Many credit card issuers may be willing to negotiate if you have a good repayment history or if you mention the possibility of transferring your balance to a competitor with a more favorable rate. Lower interest rates mean a significant reduction in the overall cost of debt, enabling you to pay off your credit cards faster and avoid credit card debt for a longer period.

Understanding the impact of credit card debt after the 7-year mark

Credit card debt doesn’t go away, but the consequences of credit card debt can only last for seven years. After this time has passed, credit bureaus may be able to give you a fresh start and delete the debt from your report. Payment history is the largest factor of a credit score, so removing old credit card debt can have a major impact, boosting your score significantly. To avoid future debt, you can try debt consolidation. It simplifies your repayment process and saves you money on interest payments.

FAQ