Banks and credit unions on nearly a daily basis are offering plenty of new credit cards, but the newest major credit card issuers are Capital One and Discover. Banks that have been in existence for several decades can suddenly become credit card issuers as soon as they market a new credit card for the first time. Newer credit cards may not be as readily recognized or accepted by merchants, however, a simple phone call to the issuer should alleviate all doubts.
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Since most credit cards are backed by financial institutions, anytime a new credit card is debuted by one of these banks, it can technically be categorized as a new credit card company. Using a credit card finder website can give you vital information on the reputations of the newest credit card companies in the industry.
Both Discover Bank and Capital One have multiple lines of credit cards for consumers with credit scores ranging from excellent to poor. Although credit card companies generally ask for the same information from applicants, online credit card issuers may require special verifications in order to establish that no fraud is taking place.
Is it safe to get a credit card with a new credit card company?
While new credit card companies may not have an established history, they are scrutinized just as heavily as other companies are. As long as the website you visit to apply for a new credit card company is secure, you can safely assume that your personal details will be safe. As for the possibility of fraud, all credit cards can be stolen, hacked, or otherwise compromised. You will not reduce your risk exposure by working with an older credit card company rather than an older one.
Working with a new credit card company is completely safe. If you have specific concerns, you can always call the customer service phone number for the credit card company in question and request verifiable answers. Even some of the newest credit card companies have been ranked by JD Power, which indicates that consumers are just as happy to business with them as with older credit card issuers.
The Massachusetts Office of Consumer Affairs and Business Regulation suggests that all consumers read over the details of their credit card agreements to avoid being hit with unnecessary or questionable fees. The better that you understand your credit card agreement, the more prepared you will be if questions about billing statements or unknown charges arise.
Do new credit card companies have less stringent credit requirements?
Credit card companies are not required to disclose what their individual credit requirements are to consumers before they apply, but many do give applicants a general idea of what can be expected. You will not have a better chance of being approved for a credit card if you go with a new credit card company.
On the other hand, companies such as Capital One do specialize in issuing lines of credit to consumers with bad credit. You will be better off shopping for a credit card that is specifically tailored for applicants with no or poor credit rather than seeking out any particular company.
Some consumers may assume that new credit card companies make it easier for them to apply and qualify for credit cards because they have received an offer in the mail. Well-known credit card issuers like American Express already have a large customer base, so this company may be less inclined to send out pre-qualified credit card offers than their competitors do.
Are there any differences between old and new credit card companies?
Besides the fact that newer credit card companies are often viewed as being less prestigious than established issuers are, there are not many other differences. Visa and MasterCard have been around for a long time, so these companies also have more employees. You might find that more of the merchants that you frequent accept MasterCard and Visa than Discover.
There are no differences in the way that older and newer credit card companies can charge their customers, mainly because of the newest changes in credit card laws. You will pay the charges due every month, be changed interest, and be able to dispute charges in exactly the same manner. New credit card companies have to follow federal laws and comply with the Federal Deposit Insurance Corporation in order to retain their licenses and the right to do business in the United States.
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