A recent survey in the United States shows that Americans' fondness for credit cards has increased for the fifth consecutive year, and using credit cards for consumption is a very common phenomenon in the United States. Experts from WorldWay Immigration advise that after immigrating to the United States, credit cards are essential for paying various expenses and for everyday life, and they often provide additional discounts and protections.
2-4 cards are sufficient
It is advisable to obtain a few credit cards from different banks and for different purposes, ideally one each from Visa, MasterCard, and American Express. Additionally, some credit card companies offer small incentives to attract card applicants; do not be misled by these to avoid long-term losses.
It’s not about the quantity, but the quality of the cards
Many banks in the United States offer credit card services, and credit cards issued by major banks such as Bank of America, Chase, American Express, and Discover, which have credit limits of tens of thousands of dollars, are particularly favored. Even within the same bank, there are many types of credit cards, which should be selected according to individual circumstances.
Credit cards help build credit history
If you consistently do not default on credit card payments, your credit record can quickly exceed 700. In such cases, obtaining the best interest rates when buying a house or a car in the United States is possible.
Credit cards provide purchase protection
In the United States, credit card payments can be postponed. If you purchase a product that you are unsatisfied with, you can notify the bank to refuse payment.
Six factors affecting credit scores
1. Length of credit history: the longer, the higher the score. The duration of use for each credit card is also very important. If you constantly jump between different cards, applying for new ones and closing old ones, it can damage your credit.
2. Credit limit: As points increase, credit card companies will compete with each other; if they see that another bank has increased your limit, they will follow suit.
3. Instances of default: the fewer, the higher the score.
4. Frequency of inquiries: frequently checking your credit record in a short period will lower your score; every time you apply for a new card, it requires a check of your credit record.
5. Asset status: Your loan situation will be recorded in your credit history; if you never default and have a long history, your score will be high.
6. Total amount of debt: the more, the lower the score.
Issues of credit identity security
Unless absolutely necessary, avoid disclosing your Social Security Number, date of birth, place of birth, etc. to others. Generally, only banks, insurance companies, and government agencies like the police, tax authorities, or DMV have the right to request this information. It is crucial to protect your credit identity to avoid trouble.
