Good Credit Cards for Rebuilding
Credit - Understanding The Possibilities
If individuals have
Credit, how can they
tell which Good Credit Cards
to pick when there are so many options?
The information below discusses a few types
of cards to give you a helpful understanding
of the pros of each:
Cash Back - With a Cash Back
card, you may be offered a reimbursement that is the same as
a percentage of their transactions. For instance,
if somebody has a Cash Back
option that provides 5% cash back
on food, gasoline, and drugstore
items, as purchases increase and rewards accumulate, they earn cash value. If you
use a hundred fifty dollars in petro, food,
and drugstore purchases every 5-7 days, at
the end of a 12-month period, about four hundred dollars
in rebates would be available.
Rewards Points - Instead
of offering money back, some companies
give redeemable rewards. Customers receive
rewards for making purchases. With each swipe of the card, the rewards
increase. When you earn enough points they can be redeemed for things like
free rental cars, gifts, magazines, and more.
Always check to see if the Good Credit Cards
for Rebuilding Credit that you want will offer
a redeemable rewards program.
Petro Bonuses - Card Issuers
can be sensitive to the price
of gasoline and want to compensate
consumers for their purchases by rewarding them with a prepaid
gasoline card. As transactions are completed, points are accumulated and summarized. Once enough points have been earned they can be turned in for a
prepaid fuel card. The cool thing is, with some cards redeemable fuel rewards can be accumulated
when buying gas.
Points for Free Rental Car Upgrades, Hotel Rooms, or Frequent Traveler Miles - When purchases are made with this kind of card, "customers receive "" points"" toward free travel including free frequent flyer miles." Once enough points are accumulated, they can be redeemed for free travel accommodations. Business travelers find these kinds of programs to be very beneficial.
Zero Percent Promotions - What does this mean? Simply put: for a limited time, finance charges are not incurred.
The promotional period generally spans 6-12 months.
Smart folks take advantage of this time
to move outstanding balances from their high interest Good Credit Cards
to one like this and pay it off while there are no finance charges being accrued. Paying the bill on or before the due date is crucial.
When a single payment is late, typically
the introductory rates are changed to a much higher
rate. Individuals that are eligible for
Good Credit Cards for Rebuilding
Credit, and are offered an interest free period
ought to choose this option.
Secured Cards for Rebuilding Credit - Individuals with one of these
must insert a few hundred to a few thousand dollars, depending on what they could afford, into a bank account that can generate interest.
This account serves as the security for the issuer. At that point a credit card is
issued with a credit max in
the amount of the deposit. Each time you swipe your card the amount of that transaction is deducted from your available credit balance, affordable
recurrent payments are calculated, and a bill
is sent. If transactions are being approved, an affordable monthly invoice will be sent. Secured Cards for Rebuilding Credit
are perfect because they operate like
standard credit cards allowing customers
to complete all kinds of transactions including booking travel accommodations like rental cars
that typically do not take debit
cards. One of the best things about the application process is that approval is typically
guaranteed even if your credit is poor. It is important to note that most
credit-rebuilding card issuers report the way you pay your bill
to the credit bureaus. This is a terrific
way to establish creditworthiness by paying timely
payments no matter if you have Rebuilding
credit or not. After paying
six to twelve payments on or before their due date, 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 regular bank account, you put money in and this becomes
the amount that can be used for purchases. After the prepaid credit card
balance has been exhausted, you can recharge it with an additional deposit. Reloadable prepaid cards
are fantastic for parents to use to give an allowance to their teen or college student, they allow people to make online purchases, and they help people that cannot
get a normal bank account.
Approval is usually guaranteed regardless of
your credit score and there is
no need for the bank that issues the prepaid cards to contact the three bureaus.
With all of the various varieties
of Good Credit Cards
for Rebuilding credit and
incentives that each of them offer, there is something for everyone. Consider
Good Credit Cards that make sense for your situation that will allow you to control your spending habits. When you receive your card always
spend wisely and pay the bill on or before the due date. Great credit is fantastic
thing to have.
To ensure that you keep building a great FICO score, obey these easy directions:
1. Keep a balance less than the
card's limit. In other words, don't
"go crazy". Most people with excellent credit make it a point to maintain
a balance that is no more than forty percent
of the limit on any
Good Credit Cards for Rebuilding Credit.
2. Keep the credit card bill paid on time. Even if a minimum payment is all you can afford to make, that's ok. If the bill is paid 30 days after the due date, it must be reported to the credit reporting companies. This negatively affects the consumer's FICO profile. Not to mention when this happens you may also have to pay a higher interest rate as a consequence of a late payment. Therefore it is smart to be mindful of the due dates.
3. Pay the balance in total every so often.
If the card is used a lot, do your best to
take a few months and pay it off as often as you can. Then once your balance is paid off it is smart to
start using the card again then 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 process illustrates to the lenders
that you are a great customer. Some of the other benefits of this approach are
a lower interest rate, higher credit limits, and a better credit score.
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for Rebuilding credit
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