Smart Credit Cards for Poor
Credit - Learning The Possibilities
When people have
Credit, how will they
tell which Smart Credit Cards
to choose when there are so many options?
The information below will break down several varieties
of cards to give you a helpful outline
of the pros of each:
Cash Back - With a Cash Back
card, customers are offered a refund equal to
a fraction of their purchases. For example,
if an applicant is approved for a Cash Back
option that provides 5% cashback
on supermarket, gas, and drugstore
items, as the rewards accumulate they earn cash value. If you
pay one hundred and fifty dollars in fuel, food,
and drugstore items every 5-7 days, at
the completion of a 12-month period, about four hundred dollars
in cash back rewards would have accumulated.
Rewards Points - In lieu
of rewarding customers with cash rewards, some companies
present customers with redeemable rewards. Customers receive
points every time the card is used. As purchases are made, the rewards
increase. After a certain amount of points add up they can be cashed in for items including
free travel, gifts, magazines, and more.
Be sure to find out if the Smart Credit Cards
for Poor Credit you are considering offers
a redeemable rewards program.
Gasoline Bonuses - Companies
are often times considerate of the price
of fuel and will give incentives to
people for using their credit card by giving them a prepaid
fuel card. As transactions are completed, points are accumulated and summarized. Once enough points have been earned you are eligible for a
free prepaid gas card. The funny thing is, with some cards fuel points can be earned
when buying gas.
Points Toward Free Hotel Stays, Rental Cars or Frequent Traveler Miles - When this kind of card is utilized, free travel points are earned. Once a specified number of points are earned, they can be redeemed for free travel accommodations. These rewards work best for those who travel a lot.
0% Promotional Interest Rates - Customers that utilize these cards are not charged any interest or finance charges for a certain number of months.
This time period typically varies from six months up to a year.
Smart customers use this promotional period
to move balances from their current Smart 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 incredibly important.
When just one payment is paid late, typically
zero percent APR rates go up to an interest-bearing
rate. Customers that are offered
Smart Credit Cards for Poor
Credit, and are offered an introductory period free of finance charges
should consider this option.
Secured Credit Cards - Customers with one of these
simply inserts a certain amount of money into an account that generates interest that the secured card issuer will set up.
This becomes the card's collateral Once the account is set up, a card is
delivered with a credit limit that is the same as
the amount that has been deposited in the account. Each time a transaction is approved the credit limit decreases, affordable
recurrent payments are determined, and a bill
is generated. If the card is being used an affordable repayment plan will be created. Secured Credit Cards
are awesome because they operate the same as
regular credit cards allowing people
to do things that debit cards may not, like making travel accommodations including airline tickets
that commonly do not accept prepaid or debit
cards. One of the best things about the application process is that approval is usually
guaranteed even if your credit is poor. It is important to note that many
credit-rebuilding card issuers submit your repayment history
to Experian, Equifax, and Trans Union. This can be a terrific
practice to show creditworthiness by making timely
payments whether you have Poor
credit or not. After paying
several consecutive timely payments, some secured card companies will approve a higher limit 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 regular bank account, a certain amount of money is deposited into an account and that becomes
your spending limit. As the prepaid account
balance has been completely used, it can be reloaded with more money and used again. Prepaid cards
work well for staying on a budget, purchases can be tracked, and they work well for individuals that are unable to
get a typical banking account.
Fast approval is usually not a problem regardless of
your credit profile and there is
no need for the prepaid card issuer to send any inquiries to the three bureaus.
With all of the many kinds
of Smart Credit Cards
for Poor credit and
rewards that they have, there is something for everyone. Consider
Smart Credit Cards that give the benefits that fit your situation. Remember these things and always
make wise purchases and timely payments. Awesome credit is fantastic
To make sure that you keep building an excellent FICO profile, obey these three guidelines:
1. Always have your bill at no more than half of the
card's max. Simply put, do not
"over spend". Make sure to maintain
an account that is no more than sixty percent or less
of the available balance on any
Smart Credit Cards for Poor Credit.
2. Make at least the minimum payment as scheduled. Even if you have to make just the minimum payment that is listed on your monthly statement, pay it. When payments are made more than 30 days late, it could be told to Experian, Equifax, and Trans Union. This has adverse affects on the consumer's FICO score. Additionally, you may also have to pay an increased interest rate as a consequence of something as small as a past due payment. Therefore it is advised that you pay on time.
3. Pay all balances down to zero every couple months.
When purchases are made, do your best to
take a few months and pay it off as many times a year as possible. Afterward, it is smart to
start using the card again and pay it back down to zero again after a few months, and don't stop this habit.
This cycle demonstrates to the lenders
that you will be an excellent credit candidate. You could also be rewarded with
low rates, a higher limit, and a higher FICO score.
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Smart Credit Cards
for Poor credit
are easy to find. Click here
to get approved for a card that fits