Best Credit Cards for Building
Credit - Understanding The Opportunities
If people have
Credit, how can they
distinguish which Best Credit Cards
to select when there are so many options?
The information below will expand on a few kinds
of cards to provide a better understanding
of the advantages of each:
Money Back - With a Money Back
card, customers get a rebate that equals
a fraction of their transactions. For example,
if somebody is approved for a Money Back
solution that provides 5% cash back
on supermarket, fuel, and drugstore
purchases, as the rewards accumulate they can be cashed in. If you
use $150 in fuel, supermarket items,
and drugstore items weekly, at
the close of a 12-month period, about four hundred dollars
in cash would have accumulated.
Rewards Points - Instead
of providing money back, some companies
present customers with points programs. Customers earn
points for making purchases. As purchases are made, the rewards
increase. Once a specified number of points have accumulated they can be redeemed for items including
free merchandise, gift items, subscriptions, etc.
Be sure to find out if the Best Credit Cards
for Building Credit you apply for offers
Gas Rewards - Lenders
are often times considerate of the cost
of fuel and will compensate
consumers for using their cards by rewarding them with a free
fuel card. As the card is used, points are accumulated. After a specified amount of points are accumulated they can be turned in for a
prepaid gas station card. The funny thing is, with some cards gas points are actually accumulated even
when you are getting gas.
Rewards for Free Hotel Accommodations, Car Rentals, or Frequent Traveler Miles - When purchases are made with these cards, customers can earn frequent traveler's points that can be redeemed for free travel. Once a specified number of points are earned, they can be cashed in exchange for free airline tickets, hotel stays, or rental cars. Frequent travelers really like these rewards.
Zero Percent APR Promotions - With these cards, finance charges are not accrued for a certain amount of time.
This time period generally lasts anywhere from six months up to a year.
Generally, customers use this interest-free period
to shift outstanding balances from their current Best Credit Cards
to one of these, then pay it off while there are no finance charges being accrued. Keeping monthly payments up to date is especially crucial.
When a payment is paid late, most times
the introductory rates are changed to another
rate. Individuals that are applying for
Best Credit Cards for Building
Credit, and are offered a 0% promotion
should consider this great opportunity.
Secured Cards to Re-establish Credit - People with this type of card
simply inserts a specified amount of cash in an account specified by the secured card issuer.
This "is why the card is called "" secured"" ." Once the account is set up, a card is
sent with a credit max in
the amount that has been deposited in the account. As the card is used your available credit is recalculated, low interest
regularly scheduled payments are determined, and a monthly invoice
is generated. Just like any other credit card, when you use it you will receive a payment plan. Secured Cards to Re-establish Credit
are terrific because they operate like
normal credit cards allowing you
to do things that debit cards may not, like making travel arrangements including hotels
that typically do not accept check
cards. However, just like prepaid cards approval is ordinarily
guaranteed even if your credit is poor. This is good because most
credit-rebuilding card companies submit whether or not timely payments are made
to the credit bureaus. This could be a terrific
technique to show creditworthiness by paying timely
payments no matter if you have Building
credit or not. After paying
six to twelve payments on or before their due date, many times the limit can be increased without
requiring additional collateral.
Prepaid Credit Cards - With
a Prepaid card, you get most of the benefits of a credit card without the debt. Similar to
a checking account, you put money in and that is
the amount that can be used for purchases. As the prepaid credit card
balance is used up, simply put more cash into the prepaid account and your card will be ready for use once again. Reloadable prepaid cards
are excellent for staying on a budget, purchases can be tracked, and they help people that cannot
acquire a conventional checking account.
Fast approval is normally granted despite
your credit report and there is
no need for the prepaid card issuer to deal with the three bureaus.
With all of the various types
of Best Credit Cards
for Building credit and
bonuses that are available, it is easy to identify the best solution for your situation. Look for
Best Credit Cards that offer rewards that match your lifestyle and spending style. The most important thing is to always
try to keep your purchases at less than half of your credit limit and make more than the minimum payment every month. Great credit is an awesome
thing to have.
To be certain that you keep growing a super FICO profile, obey these three rules:
1. Keep your bill at no more than half of the
card's max. Another way of saying it is, don't
"go wild". Try to retain
a balance that is no more than forty percent
of the limit on any
Best Credit Cards for Building Credit.
2. Pay your credit card bill on time every month. Even if the minimum is the most that your budget will allow, that will be just fine. Once a payment is more than 30 days behind, it may be sent to the credit reporting companies. This has adverse affects on the consumer's FICO profile. Additionally, you may also experience an increased interest rate as a result of a delayed payment. Hence it is wise to pay the bill.
3. Pay the entire bill every time your finances will allow.
When you make purchases, try to
take a few months and pay it off as much as possible. Once you do this it is smart to
make more purchases and pay it back down to zero again after a few months, and make this your repayment pattern.
This cycle shows the issuers
that you can be an excellent credit candidate. Most lenders reward customers like this with
a lower interest rate, a higher credit max, and a higher credit score.
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