Smart Credit Cards for Rebuilding
Credit - Understanding The Possibilities
If individuals have
Credit, how do they
tell which Smart Credit Cards
to choose when there are so many possibilities?
This article will break down a couple kinds
of cards to offer a useful understanding
of the pros of each:
Cash Back - With a Cash Back
card, customers get a refund that equals
a fraction of their transactions. For example,
if a customer has been approved for a Cash Back
offer that provides 5% cashback
on food, gas, and pharmacy
items, as the rebates add up they earn cash value. If you
spend $150 in petro, supermarket items,
and pharmacy items every 5-7 days, at
the completion of a year, almost $400
in rebates would have accumulated.
Rewards Points - In lieu
of offering cash rebates, some companies
offer redeemable rewards. Customers get
points for just about every transaction. As purchases are made, the points
increase. After a certain amount of points add up they can be cashed in for great stuff, such as
free hotel stays, gift cards, magazines, and more.
It is wise to see if the Smart Credit Cards
for Rebuilding Credit that you want will offer
Petro Rewards - Credit card issuers
are often times understanding about the cost
of gasoline and will offer an incentive to
their customers for their purchases by giving them a prepaid
gasoline card. As purchases are made, points are earned. After you have earned enough points you can get a
prepaid gas station card. The cool thing is, with some cards fuel points can be earned
while making gas purchases.
Rewards for Free Hotel Stays, Rental Cars or Frequent Traveler Miles - When these cards are used, redeemable points that can be used for free travel arrangements including airline travel are accumulated. Once a specified number of points are earned, they can be applied toward all kinds of travel arrangements including free air travel. This kind of card is great for business travelers.
0% Introductory Interest Rates - Finance charges are not applied on these cards for a specified amount of time.
This time period usually lasts anywhere from six to twelve months.
Many folks are advised to utilize promotions such as this
to transfer outstanding balances from their interest bearing Smart Credit Cards
to one of these and pay it off while there are no finance charges being accrued. Making timely payments is especially crucial.
When just one payment is received late, most times
0% APR rates adjust to a different
rate. Customers that are applying for
Smart Credit Cards for Rebuilding
Credit, and are offered an introductory period free of finance charges
should consider this great opportunity.
Secured Credit Cards - Customers that have this type of card
simply deposits a certain amount of money in a savings account.
This "is what makes it a "" secured card"" ." At that point a credit card is
offered with a credit limit that is the same as
the opening balance of the interest bearing account that was created. Each time you swipe your card your available credit is recalculated, affordable
regularly scheduled payments are determined, and a bill
is given to you. If the card is being used an affordable monthly invoice will be sent. Secured Credit Cards
are awesome because they perform like
normal credit cards allowing people
to do things that debit cards may not, like making travel arrangements like vehicle rentals
that commonly do not accept consumer checking account
cards. Individuals with bad credit should apply because approval is usually
guaranteed regardless of your credit score. It is important to note that most
credit-rebuilding card companies submit the way you pay your bill
to be added to your credit profile. This could be a wonderful
technique to show creditworthiness by making scheduled
payments whether you have Rebuilding
credit or not. Once you make
six to twelve payments in a row, some secured card companies will approve a higher limit without
asking for more cash to be put into the account that was used to set up the card.
Pre-paid Credit Cards - With
a Pre-paid card, you get out of it exactly what you put in. Similar to
a typical bank account, a deposit is made into an account and this becomes
the amount that can be used for purchases. As the prepaid account
balance has been exhausted, simply put more cash into the prepaid account and your card will be ready for use once again. These cards
are fantastic for financial planning, they offer the same flexibility as a check card, and they are a great solution for those that cannot
get a traditional depository account.
Approval is normally granted regardless of
your credit profile and there is
no need for the prepaid card issuer to contact the credit bureaus.
With all of the various varieties
of Smart Credit Cards
for Rebuilding credit and
bonuses that are available, there is a solution available for most credit card seekers. Look for
Smart Credit Cards that give the benefits that fit your situation. Once you are approved be sure to
spend within your budget and stay under the limit. Timely payments are important as well. Good credit is a great
thing to have.
To ensure that you keep cultivating a prime FICO score, obey these general directions:
1. Always have your outstanding balance lower than the
card's max. In other words, it is not smart to
"go wild". Make sure to carry
a balance that is generally fifty percent
of the available balance on any
Smart Credit Cards for Rebuilding Credit.
2. It is important to pay the bill when it is due. Even if a small payment can be made, 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 posted to the credit reporting agencies. This is bad for the consumer's FICO profile. Unfortunately, when this happens you may also be assessed an increased interest rate as a consequence of a tardy payment. Thus it is recommended that consumers stay on top of the bill.
3. Pay the balance completely every quarter.
When you make purchases, do your best to
pay the balance back down to zero at least once a year. Once you do this go ahead and
make more purchases then pay it off once again after over the course of a few billing cycles, and keep utilizing this approach as you complete your monthly budget and annual financial plan.
This pattern indicates to the issuers
that you are an excellent credit candidate. Once this sequence is repeated a couple of times, you could qualify for
low interest rates, more of a limit, and a more favorable credit report.
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for Rebuilding credit
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