Credit Cards for Building
Credit - Learning The Choices
If individuals have
Credit, how can they
tell which Credit Cards
to choose when there are so many possibilities?
The information below will break down a few types
of cards to give you a better understanding
of the pros of each:
Money Back - With a Money Back
card, customers get a rebate equal to
a percentage of their transactions. For instance,
if there is a Money Back
option that gives 5% cashback
on groceries, gasoline, and drugstore
purchases, as the rebates add up they can converted to cash. If you
pay $150 in petro, supermarket items,
and pharmacy purchases weekly, at
the close of a 12-month period, about four hundred dollars
in cash back rewards would have accumulated.
Redeemable Points - Instead
of providing money back, some issuers
give redeemable rewards. Customers earn
points for making purchases. As purchases are made, the rewards
accumulate. After a certain amount of points add up they can be cashed in for perks like
free rental cars, gift items, magazines, etc.
It is important to know whether or not the Credit Cards
for Building Credit you are considering offers
Gas Rewards - Credit card issuers
can be considerate of the price
of gas and want to reward
people for using their credit card by offering them a prepaid
gasoline card. As the credit card is utilized, reward points add up. After you have earned enough points you can get a
free prepaid gasoline card. Sometimes, fuel points can be earned
while buying gas.
Points Redeemable for Free Rental Car Upgrades, Hotel Rooms, or Frequent Air Travel Miles - When these cards are used, points that can be used as free frequent flyer miles or free travel vouchers are earned. Once a certain number of points have been accumulated, they can be applied toward all kinds of travel arrangements including free air travel. This kind of card is great for business travelers.
Zero Percent APR Promotions - With these cards, finance charges are not accrued for a certain amount of time.
This time period usually varies from half a year to a whole year.
Typically, folks take advantage of this time
to shift outstanding balances from their high interest 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 very important.
When a payment is paid late, generally
0% APR rates adjust to a different
rate. Customers that are eligible for
Credit Cards for Building
Credit, and are offered a 0% promotion
should think about this option.
Secured Cards to Re-establish Credit - People with this type of card
would insert money into a secure account that accumulates interest.
This account serves as the security for the issuer. At that point a credit card is
delivered with a credit max equal to
the amount that has been deposited in the account. When purchases are made the amount of that transaction is deducted from your available credit balance, low rate
recurrent payments are computed, and a bill
is sent. Just like any other credit card, when you use it a relatively small monthly payment is expected. Secured Cards to Re-establish Credit
are excellent because they function like
regular credit cards allowing people
to do things that debit cards may not, like making travel accommodations like hotels, rental cars, airline tickets, or cruises
that sometimes do not accept prepaid or debit
cards. However, just like prepaid cards approval is ordinarily
guaranteed whether you have good credit or not. It is important to note that many
credit-rebuilding card companies report your repayment history
to be added to your credit profile. This can be an excellent
way to establish creditworthiness by showing scheduled
payments whether you have Building
credit or not. After paying
a certain number of consecutive timely payments, many times the limit can be increased without
asking for more cash to be put into the account that was used to set up the card.
Pre-paid Credit Cards - With
a Pre-paid card, you get out of it exactly what you put in. Similar to
a typical bank account, a certain amount of money is deposited into an account and that is
the amount that can be spent. When the prepaid account
balance becomes depleted, it can be reloaded with more money and used again. These cards
work well for staying on a budget, purchases can be tracked, and they help people that cannot
obtain a typical banking account.
Quick approval is usually granted regardless of
your credit score and there is
no need for the issuer to deal with the credit bureaus.
With all of the many kinds
of Credit Cards
for Building credit and
rewards that exist, it is easy to identify the best solution for your situation. Look for
Credit Cards that offer rewards that match your lifestyle and spending style. Once you are approved be sure to
make wise purchases and timely payments. Good credit is fantastic
thing to have.
To be certain that you keep developing an awesome FICO profile, follow these few directions:
1. Keep your outstanding balance at a percentage of the
card's max. Another way of saying it is, do not
"go wild". Most people with excellent credit make it a point to retain
a balance that is no more than forty to fifty percent
of the maximum spending limit on any
Credit Cards for Building Credit.
2. Keep the credit card bill paid on time. Even if a minimum payment is all you can afford to make, be sure to pay the bill on time. If the bill is paid 30 days after the due date, that information may be posted to the credit bureaus. This negatively affects your FICO score. As a result, you may also have more points on the card's interest rate as a consequence of a late payment. Thus it is smart to make payments.
3. Pay the balance in total every so often.
When purchases are made, make it your goal to
pay the balance back down to zero at least once a year. After the bill has been paid down to zero you can feel free to
start using the card again and take a few months to pay the balance off again, and keep utilizing this approach as you complete your monthly budget and annual financial plan.
This cycle illustrates to the issuing companies
that you are creditworthy. Some other perks you could get when you repay in this way are
lower rates, a higher limit, and a better credit profile.
Our network members serve
one or more of these states: Alabama
* Alaska * Arizona * Arkansas * California
* Colorado * Connecticut * Delaware * District
of Columbia * Florida * Georgia * Hawaii
* Idaho * Illinois * Indiana * Iowa * Kansas
* Kentucky * Louisiana * Maine * Maryland
* Massachusetts * Michigan * Minnesota *
Mississippi * Missouri * Montana * Nebraska
* Nevada * New Hampshire * New Jersey *
New Mexico * New York * North Carolina *
North Dakota * Ohio * Oklahoma * Oregon
* Pennsylvania * Rhode Island * South Carolina
* South Dakota * Tennessee * Texas * Utah
* Vermont * Virginia * Washington * West
Virginia * Wisconsin * Wyoming
for Building credit
are available online. Click here
to apply for a card that fits