Good Credit Cards for Building
Credit - Knowing The Opportunities
When people have
Credit, how can they
distinguish which Good Credit Cards
to choose when there are so many choices?
This article will break down a couple varieties
of cards to give you a helpful understanding
of the pros of each:
Money Back - With a Money Back
card, customers are offered a reimbursement equivalent to
a percentage of their transactions. For instance,
if somebody is approved for a Money Back
option that gives 5% cash back
on food, fuel, and pharmacy
items, as purchases increase and rewards accumulate, they earn cash value. If you
spend a hundred fifty dollars in fuel, supermarket items,
and drugstore purchases each week, at
the end of a year, almost $400
in rebates would be available.
Rewards Points - In lieu
of giving money back, some lenders
give redeemable rewards. Customers get
points for just about every transaction. Every time the card is used, the points
increase. Once a specified number of points have accumulated they can be redeemed for great stuff, such as
free merchandise, gifts, subscriptions, and so on.
It is important to know whether or not the Good Credit Cards
for Building Credit you apply for offers
a points program.
Fuel Rewards - Card Issuers
are often times understanding about the price
of gasoline and want to offer an incentive to
consumers for their purchases by rewarding them with a prepaid
fuel card. As the credit card is utilized, reward points add up. Once enough points have been earned they can be redeemed for a
prepaid gas card. The cool thing is, with some cards gas points are actually accumulated even
while you are gassing up your vehicle.
Reward Points Toward Free Hotel Stays, Rental Cars or Frequent Flyer Miles - When purchases are made with this kind of card, redeemable points that can be used for free travel arrangements including airline travel are accumulated. Once a certain number of points have been accumulated, they turn into vouchers that can be used for discounted or free travel arrangements like rental cars, hotels, or even airline tickets. These programs are great for frequent travelers.
0% Introductory Rates - What does this mean? Simply put: for a limited time, finance charges are not incurred.
The period where no finance charges are being applied generally varies from half a year to a whole year.
Most times, folks use this interest-free period
to move balances from their interest bearing Good Credit Cards
to one of these and pay it off while there are no finance charges being accrued. Making timely payments is incredibly important.
When just one payment is not received on time, generally
0% APR rates go up to an interest-bearing
rate. Individuals that are approved for
Good Credit Cards for Building
Credit, and have the chance to get a 0% introductory rate
should choose this great opportunity.
Secured Cards to Re-establish Credit - People that have a secured credit card
would deposit a certain amount of money in an account that can earn interest while it is there.
This is what secures the account. After the deposit is made a credit card is
sent with a spending limit equal to
the amount that has been deposited in the account. When purchases are made your available credit is recalculated, low rate
recurrent payments are computed, and a monthly invoice
is given to you. If purchases are made an affordable repayment plan will be created. Secured Cards to Re-establish Credit
are awesome because they perform the same as
ordinary credit cards allowing customers
to do things that debit cards may not, like making travel arrangements including hotels
that typically do not accept check
cards. For those with bad credit approval is ordinarily
guaranteed despite your credit profile. It is important to note that most
credit-rebuilding card issuers submit whether or not the bill is paid on time
to be added to your credit profile. This is a great
practice to prove you are creditworthy by paying regular
payments no matter if you have Building
credit or not. After paying
several payments in a row, some secured card companies will approve a higher limit without
requiring additional collateral.
Prepaid Credit Cards - With
a Prepaid card, purchases can be made without interest, fees, or finance charges. Similar to
a conventional account, a certain amount of money is deposited into an account and that is
the credit limit. As the prepaid credit card
balance becomes depleted, it can be reloaded with more money and used again. Reloadable prepaid cards
are excellent for staying on a budget, transactions can be tracked and recorded if necessary, and they are generally granted to those that may not qualify to
acquire a conventional checking account.
Fast approval is generally guaranteed despite
your bureau report and there is
no need for the prepaid card issuer to deal with the credit bureaus.
With all of the diverse kinds
of Good Credit Cards
for Building credit and
benefits that each of them offer, it is easy to identify the best solution for your situation. Look for
Good Credit Cards that give the benefits that fit your situation. When you receive your card be sure to
make wise purchases and timely payments. Excellent credit is a wonderful
To ensure that you keep developing a prime FICO profile, follow these three tips:
1. Always have a balance lower than the
credit max. Another way of saying it is, it is not smart to
"max out". Make sure to keep
a bill that is about sixty percent or less
of the limit on any
Good Credit Cards for Building Credit.
2. Make the monthly payments by the due date. Even if the minimum is the most that your budget will allow, that will be just fine. If you miss a payment, it could be reported to the credit reporting companies. This could bring down your FICO score. And let's not forget the fact that when this happens you may also have an increased interest rate as a result of just this one past due payment. Therefore it is recommended that consumers pay the bill.
3. Repay the balance completely every so often.
When purchases are made, make it your goal to
pay the balance back down to zero at least once a year. Once you do this you can feel free to
begin creating transaction activity (like buying gas, shopping online, or making purchases) then pay it back down to zero again after a few months, and keep utilizing this approach as you complete your monthly budget and annual financial plan.
This approach confirms to the issuers
that you are creditworthy. Once this sequence is repeated a couple of times, you could qualify for
low rates, an increased credit limit, and a higher credit score.
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Good Credit Cards
for Building credit
are available online. Click here
to get approved for a card that fits