Recommended Credit Cards for Building
Credit - Understanding The Options
If people have
Credit, how can they
know which Recommended Credit Cards
to select when there are so many options?
This article will discuss several kinds
of cards to offer a better understanding
of the benefits of each:
Cashback - With a Cashback
card, customers get a reimbursement that equals
a fraction of their transactions. For example,
if there is a Cashback
option that awards 5% cashback
on food, gas, and pharmacy
items, as purchases increase and rewards accumulate, they earn cash value. If you
use a hundred fifty dollars in gasoline, supermarket items,
and drugstore purchases each week, by
the end of a year, about four hundred dollars
in cash back rewards would have accumulated.
Rewards Points - Instead
of providing cash back, some companies
offer redeemable rewards. Customers earn
points when purchases are made. As purchases are made, the rewards
accumulate. Once a specified number of points have accumulated they can be cashed in for all kinds of goodies including
free hotel stays, gifts, magazines, and more.
Always check to see if the Recommended Credit Cards
for Building Credit you apply for offers
a points program.
Fuel Bonuses - Card Issuers
are often times sensitive to the cost
of gas and will offer an incentive to
people for using their credit card by rewarding them with a prepaid
gas card. As the credit card is utilized, reward points add up. After you have earned enough points you can get a
prepaid gas station card. The funny thing is, with some cards fuel points can be earned
when making fuel purchases.
Reward Points Toward Free Rental Car Upgrades, Hotel Rooms, or Frequent Flyer Miles - When these cards are used, points that can be used as free frequent flyer miles or free travel vouchers are earned. Once a specified number of points are earned, they can be applied toward all kinds of travel arrangements including free air travel. These rewards work best for those who travel a lot.
Zero Percent APR Promotions - In the beginning when these credit cards are utilized, there are no finance charges that are applied.
The promotional period usually spans six to twelve months.
Generally, customers take advantage of this interest-free period
to transfer balances from their high interest Recommended Credit Cards
to one of these and pay it off while there are no finance charges being accrued. Keeping monthly payments up to date is imperative.
When the first payment is paid late, typically
zero percent APR rates adjust to another
rate. Customers that are applying for
Recommended Credit Cards for Building
Credit, and have the chance to get a 0% introductory rate
should choose this option.
Secured Cards - Customers with one of these
would put a specified amount of cash into an account specified by the secured card issuer.
This becomes the card's collateral After the deposit is made a credit card is
sent with a credit max that is the same as
the amount that has been deposited in the account. When purchases are made the credit limit decreases, low interest
regularly scheduled payments are computed, and payment plan
is generated. If purchases are made you will receive a payment plan. Secured Cards
are awesome because they function like
standard credit cards allowing customers
to do things that debit cards may not, like making travel arrangements including rental cars
that generally do not accept standard bank account
cards. When applicants have bad credit approval is typically
guaranteed whether you have good credit or not. However, keep in mind that many
credit-rebuilding card issuers report your payment schedule and how you keep up with your payments
to be added to your credit profile. This is a wonderful
technique to establish creditworthiness by showing scheduled
payments whether you have Building
credit or not. After paying
several consecutive timely payments, many times the limit can be increased without
requiring another deposit to the initial secured account.
Prepaid Credit Cards - With
a Prepaid card, you get most of the benefits of a credit card without the debt. Similar to
a typical bank account, a certain amount of money is deposited into an account and this becomes
the credit limit. When the prepaid account
balance becomes depleted, simply put more cash into the prepaid account and your card will be ready for use once again. Prepaid credit cards
are terrific for budgeting, transactions can be tracked and recorded if necessary, and they are a great solution for those that cannot
obtain a standard banking account.
Approval is normally not a problem despite
your bureau score and there is
no need for the issuer to deal with the three bureaus.
With all of the many types
of Recommended Credit Cards
for Building credit and
bonuses that they have, there is a solution available for most credit card seekers. Look for
Recommended Credit Cards that allow for the most rewards. The most important thing is to be sure to
spend within your budget and stay under the limit. Timely payments are important as well. Great credit is fantastic
thing to have.
To be certain that you keep growing an excellent FICO report, obey these general rules:
1. Maintain your bill lower than the
credit max. Simply put, do not
"go wild". Make sure to carry
a bill that is about fifty percent
of the available balance on any
Recommended Credit Cards for Building Credit.
2. Do not make late payments. 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, it may be sent to the credit reporting companies. This has adverse affects on your FICO profile. And let's not forget the fact that customers may also experience a higher interest rate as a result of something as small as a delayed payment. Thus it is recommended that consumers pay the bill.
3. Repay the balance completely every time your finances will allow.
When the balance gets to be about half of the limit, do your best to
pay it all off as much as possible. Then once your balance is paid off go ahead and
start using the card again then after a couple of billing cycles, pay the whole thing off just like you did before, and keep utilizing this approach as you complete your monthly budget and annual financial plan.
This process illustrates to the issuers
that you can be creditworthy. Some of the other benefits of this approach are
a lower rate, a higher limit, and a higher credit score.
Our partners 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
Recommended Credit Cards
for Building credit
are waiting for your application. Click here
to apply for a solution that fits