Recommended Credit Cards for Rebuilding
Credit - Knowing The Options
When people have
Credit, how do they
tell which Recommended Credit Cards
to pick when there are so many options?
This article discusses a couple types
of cards to provide a useful outline
of the advantages of each:
Money Back - With a Money Back
card, customers are rewarded with a refund that equals
a percentage of their transactions. For instance,
if an applicant is approved for a Money Back
option that gives 5% cashback
on groceries, fuel, and pharmacy
items, as purchases increase and rewards accumulate, they can be cashed in. If you
spend one hundred and fifty dollars in gasoline, groceries,
and pharmacy items every week, at
the close of a year, $390
in rebates would be ready to cash out.
Redeemable Points - In lieu
of offering money back, some lenders
present customers with redeemable rewards. Customers get
rewards for just about every transaction. Every time the card is used, the points
increase. After a certain amount of points add up they can be cashed in for great stuff, such as
free travel, gift items, subscriptions, etc.
It is important to know whether or not the Recommended Credit Cards
for Rebuilding Credit that you want will offer
a redeemable rewards program.
Petro Rewards - Lenders
are often times considerate of the cost
of fuel and will offer an incentive to
consumers for their purchases by offering them a free
fuel card. As the card is used, points are accumulated. Once enough points have been earned you can get a
prepaid gasoline card. Sometimes, fuel points can be earned
when you are getting gas.
Rewards for Free Hotel Stays, Rental Cars or Frequent Traveler Miles - When these cards are used, "customers receive "" points"" toward free travel including free frequent flyer miles." After an accumulation of a certain number of points, they can be cashed in for discounted or free airline tickets or travel accommodations. These rewards work best for those who travel a lot.
Zero Percent Introductory Interest Rates - In the beginning when these credit cards are utilized, there are no finance charges that are applied.
This time period usually spans 6-12 months.
Typically, folks are advised to utilize promotions such as this
to shift balances from their high interest Recommended Credit Cards
to one of these, then create a personal budget that allows them to pay the whole thing off without having to pay any finance charges. Making timely payments is key.
When the first payment is overdue, generally
0% APR rates go up to a different
rate. Folks that are applying for
Recommended Credit Cards for Rebuilding
Credit, and have the opportunity to sign up for an interest free period
should choose this money saving option.
Secured Cards for Building Credit - People with a secured credit card
must deposit a cash amount into an interest-bearing savings account.
This is what secures the account. Once the account is set up, a card is
sent with a credit max that is the same as
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 computed, and a bill
is is mailed. Just like any other credit card, when you use it an affordable repayment plan will be created. Secured Cards for Building Credit
are perfect because they operate the same as
conventional credit cards allowing you
to do things that debit cards may not, like making travel accommodations like airline tickets
that typically do not accept debit
cards. However, just like prepaid cards approval is generally
guaranteed despite your credit profile. It is important to note that most
secured card companies submit whether or not the bill is paid on time
to the credit bureaus. This can be an excellent
technique to establish creditworthiness by making timely
payments whether you have Rebuilding
credit or not. Once you have paid
a certain number of consecutive timely payments, typically the lender will offer additional spending power without
asking for an additional deposit.
Pre-paid Credit Cards - With
a Pre-paid card, there is no question about the credit limit. Similar to
a checking account, a certain amount of money is deposited into an account and that is
your spending limit. When the prepaid credit card
balance is used up, you can recharge it with an additional deposit. Reloadable prepaid cards
work well for parents to use to give an allowance to their teen or college student, they make it so you don't have to carry cash all the time, and they work well for individuals that are unable to
obtain a normal depository account.
Fast approval is typically guaranteed regardless of
your FICO profile and there is
no need for the prepaid card issuer to contact Experian, Equifax, and TransUnion.
With all of the various types
of Recommended Credit Cards
for Rebuilding credit and
benefits that exist, it is easy to identify the best solution for your situation. Seek
Recommended Credit Cards that offer rewards that match your lifestyle and spending style. Make an educated choice and always
make wise purchases and timely payments. Good credit is an awesome
To guarantee that you keep building a prime credit report, obey these simple tips:
1. Maintain your outstanding balance lower than the
card's limit. Another way of saying it is, don't
"max out". It is important to maintain
a bill that is generally fifty percent
of the available balance on any
Recommended Credit Cards for Rebuilding Credit.
2. Do not default on payments. Even if a minimum payment is all you can afford to make, the most important thing is that the payment is made when it is due. When payments are made more than 30 days late, it must be sent to the credit reporting agencies. This negatively affects the consumer's credit report. As a result, when this happens you may also experience a higher interest rate as a consequence of something as small as a past due payment. Thus it is smart to be mindful of the due dates.
3. Pay the balance completely every few months.
When the balance gets to be about half of the limit, do your best to
bring the balance to zero at least once a year. After completing this, it is wise to
begin creating transaction activity (like buying gas, shopping online, or making purchases) then take a few months to pay the balance off again, and keep this pattern going
This cycle illustrates to the issuing companies
that you will be creditworthy. Most lenders reward customers like this with
low rates, a higher limit, and a better credit profile.
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