Why do credit cards ask if you pay rent?


Why do credit cards ask if you pay rent? When applying for a credit card, the issuer may ask whether you rent or own your home as part of their application process. This information is used to assess your creditworthiness and determine your ability to repay the credit card debt.


Do credit card companies actually check your income?

Credit card companies ask for your income to determine whether to approve your application and, if so, the amount of credit to issue you. For example, a card issuer could decide that based on your income, it will approve you for a card with a credit limit of $1,000, or $5,000, or more.


Is 3 credit cards too many?

If your goal is to get or maintain a good credit score, two to three credit card accounts, in addition to other types of credit, are generally recommended. This combination may help you improve your credit mix. Lenders and creditors like to see a wide variety of credit types on your credit report.