Popular Credit Cards for Building
Credit - Understanding The Opportunities
When individuals have
Credit, how do they
know which Popular Credit Cards
to pick when there are so many opportunities?
This article will break down several kinds
of cards to offer a helpful understanding
of the advantages of each:
Money Back - With a Money Back
card, customers are rewarded with a rebate that is the same as
a percentage of their transactions. For example,
if an applicant is approved for a Money Back
option that gives five percent cash back
on groceries, fuel, and drugstore
items, as the rewards accumulate they can be cashed in. If you
use one hundred and fifty dollars in gasoline, supermarket items,
and drugstore items weekly, at
the completion of a year, almost $400
in cash would have accumulated.
Rewards Points - Instead
of rewarding customers with cash rebates, some companies
present customers with redeemable rewards. Customers receive
rewards for just about every transaction. Every time the card is used, the rewards
add up. After a certain amount of points add up they can be redeemed for all kinds of goodies including
free merchandise, gift items, subscriptions, and more.
It is smart to be aware of whether or not the Popular Credit Cards
for Building Credit you are considering offers
Petro Rewards - Card Issuers
are often times understanding about the price
of gas and will reward
consumers for making card purchases by offering them a prepaid
fuel card. As purchases are made, points are earned. Once enough points have been earned they can be redeemed for a
free prepaid fuel card. The cool thing is, with some cards gas points are actually accumulated even
while buying gas.
Points Redeemable for Free Hotel Stays, Rental Cars or Frequent Flyer Miles - When purchases are made with this kind of card, points that can be used as free frequent flyer miles or free travel vouchers are earned. Once enough points are accumulated, they turn into vouchers that can be used for discounted or free travel arrangements like rental cars, hotels, or even airline tickets. This kind of card is great for business travelers.
0% Introductory Interest Rates - Customers that utilize these cards are not charged any interest or finance charges for a certain number of months.
The promotional period generally spans 6-12 months.
Many customers are advised to utilize promotions such as this
to move their balance from their current Popular Credit Cards
to one like this and pay the balances off within the promotional period. Making monthly payments on time is very important.
When the first payment is received late, generally
0% APR rates go up to a much higher
rate. Individuals that are eligible for
Popular Credit Cards for Building
Credit, and are offered an interest free period
should consider this money saving option.
Secured Cards to Re-establish Credit - Customers with a secured card
simply deposits a cash amount in an account that can earn interest while it is there.
This "is why the card is called "" secured"" ." Once the account is set up, a credit card is
sent with a credit max equal to
the opening balance of the interest bearing account that was created. Each time a transaction is approved your available credit is recalculated, low rate
monthly payments are determined, and payment plan
is given to you. If the card is being used a relatively small monthly payment is expected. Secured Cards to Re-establish Credit
are terrific because they perform like
normal credit cards allowing customers
to complete all kinds of transactions including booking travel accommodations like hotels, rental cars, airline tickets, or cruises
that typically do not take consumer checking account
cards. Another great feature is that approval is ordinarily
guaranteed despite your credit profile. It is important to note that many
secured card issuers submit whether or not you are keeping up with your payments
to be added to your credit profile. This can be a terrific
way to show creditworthiness by making regular
payments whether you have Building
credit or not. Once you make
several payments on or before their due date, some secured card companies will approve a higher limit without
requiring an additional deposit.
Pre-paid Credit Cards - With
a Pre-paid card, purchases can be made without interest, fees, or finance charges. Similar to
a regular bank account, a deposit is made into an account and this is
the credit limit. When the prepaid credit card
balance has been completely used, a deposit into the prepaid account can be made and the new credit limit will be the amount of the new deposit. Prepaid cards
are excellent for budgeting, they offer the kind of flexibility that debit cards have, and they work well for individuals that are unable to
get a conventional bank account.
Approval is normally not a problem regardless of
your FICO report and there is
no need for the prepaid company to deal with Experian, Equifax, and TransUnion.
With all of the different sorts
of Popular Credit Cards
for Building credit and
rewards that exist, there is something for everyone. Seek
Popular Credit Cards that offer rewards that match your lifestyle and spending style. The most important thing is to be sure to
spend within your budget and stay under the limit. Timely payments are important as well. Super credit is a wonderful
To guarantee that you keep building an excellent credit profile, follow these general tips:
1. Always have your outstanding balance at a percentage of the
card's limit. In other words, it is not smart to
"over spend". It is smart to carry
an account that is no more than forty percent
of the max on any
Popular 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, pay it. When payments are made more than 30 days late, that information will be told to the credit reporting companies. This is not good for your FICO report. And let's not forget the fact that you may also be assessed a rising interest rate as a result of just one past due payment. Thus it is smart to make this bill payment a financial priority.
3. Repay the entire bill every so often.
When purchases are made, try to
bring the balance to zero as many times a year as possible. Then once your balance is paid off you can feel free to
start using the card again and after a couple of billing cycles, pay the whole thing off just like you did before, and make this your repayment pattern.
This pattern shows the lenders
that you will be a great customer. Some of the other benefits of this approach are
lower rates, a higher credit max, and a better FICO score.
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Popular Credit Cards
for Building credit
are easy to find. Click here
to apply for a card that fits