Smart Credit Cards for Rebuilding
Credit - Knowing The Opportunities
If individuals have
Credit, how will they
distinguish which Smart Credit Cards
to choose when there are so many choices?
This article will break down a couple kinds
of cards to provide a useful outline
of the advantages of each:
Cash Back - With a Cash Back
card, you may be offered a repayment equal to
a percentage of their transactions. For example,
if a customer has been approved for a Cash Back
offer that gives five percent cash back
on supermarket, gasoline, and drugstore
purchases, as the rewards accumulate they earn cash value. If you
pay $150 in petro, supermarket items,
and pharmacy purchases every 5-7 days, at
the end of a year, about four hundred dollars
in cash back rewards would be ready to cash out.
Redeemable Points - Instead
of providing cash rewards, some companies
give redeemable rewards. Customers receive
rewards for just about every transaction. As purchases are made, the points
accumulate. When you earn enough points they can be redeemed for perks like
free merchandise, gift items, magazines, etc.
It is smart to be aware of whether or not the Smart Credit Cards
for Rebuilding Credit you apply for offers
a points program.
Fuel Rewards - Card Issuers
can be considerate of the cost
of gas and want to compensate
people for using their cards by giving them a free
fuel card. As purchases are made, points are earned. Once you have completed enough transactions to accumulate a certain amount of points you are eligible for a
prepaid gasoline card. The funny thing is, with some cards fuel points can be earned
while buying fuel.
Points for Free Hotel Accommodations, Car Rentals, or Frequent Air Traveler Miles - When purchases are made with these cards, redeemable points that can be used for free travel arrangements including airline travel are accumulated. As the points add up, they can be redeemed for free travel accommodations. These programs are great for frequent travelers.
Zero Percent Introductory Rates - In the beginning when these credit cards are utilized, there are no finance charges that are applied.
The promotional period generally varies from six to twelve months.
Many people take advantage of this time
to shift outstanding balances from their current Smart Credit Cards
to one of these and pay it off while there are no finance charges being accrued. Paying the bill on or before the due date is very important.
When the first payment is overdue, most times
the introductory rates adjust to another
rate. Individuals that are eligible for
Smart Credit Cards for Rebuilding
Credit, and are offered an interest free period
should consider this option.
Secured Cards to Establish Credit - People that have this type of card
must put a few hundred to a few thousand dollars, depending on what they could afford, in a secure account that accumulates interest.
This account serves as the security for the issuer. After the deposit is made a card is
issued with a credit limit that is the same as
the amount that has been deposited in the account. When purchases are made the amount of that transaction is deducted from your available credit balance, low rate
monthly payments are calculated, and payment plan
is generated. Just like any other credit card, when you use it a relatively small monthly payment is expected. Secured Cards to Establish Credit
are perfect because they operate like
normal credit cards allowing people
the freedom to book travel accommodations including hotels
that sometimes do not accept check
cards. Individuals with bad credit should apply because approval is ordinarily
guaranteed regardless of your credit score. However, keep in mind that most
secured card companies report whether or not the bill is paid on time
to Experian, Equifax, and Trans Union. This can be a fantastic
technique to prove you are creditworthy by showing scheduled
payments whether you have Rebuilding
credit or not. Once you have paid
a certain number of consecutive timely payments, many times the limit can be increased without
requiring an additional deposit.
Prepaid Credit Cards - With
a Prepaid card, there is no guesswork. Similar to
a checking account, you put money in and that becomes
the amount that can be used for purchases. When the prepaid card
balance runs out, a deposit into the prepaid account can be made and the new credit limit will be the amount of the new deposit. Reloadable prepaid cards
are great for financial planning, they make it so you don't have to carry cash all the time, and they are a great solution for those that cannot
get a typical bank account.
Fast approval is normally not a problem despite
your bureau profile and there is
no need for the bank that issues the prepaid cards to deal with Experian, Equifax, and TransUnion.
With all of the different kinds
of Smart Credit Cards
for Rebuilding credit and
rewards that are available, there is a solution available for most credit card seekers. Seek
Smart Credit Cards that make sense for your situation that will allow you to control your spending habits. The most important thing is to be sure to
make wise purchases and timely payments. Super credit is an awesome
thing to have.
To be certain that you keep growing an excellent FICO profile, follow these three rules:
1. Keep a balance at no more than half of the
card's limit. Simply put, it is not smart to
"max out". The banks encourage their cardholders to maintain
a balance that is generally forty to fifty percent
of the limit on any
Smart Credit Cards for Rebuilding Credit.
2. Make payments on or before the due date. Even if a small payment can be made, that's ok. Once a payment is more than 30 days behind, it could be told to the credit bureaus. This has adverse affects on the consumer's credit report. As a result, when this happens you may also experience a higher interest rate as a result of just one delayed payment. Thus it is recommended that consumers pay the bill.
3. Pay the balance completely every couple months.
When you make purchases, try to
pay the balance back down to zero as much as possible. Subsequently, it is wise to
begin creating transaction activity (like buying gas, shopping online, or making purchases) and pay it back down to zero again after a few months, and don't stop this habit.
This repayment history demonstrates to the issuers
that you can be creditworthy. Some other perks you could get when you repay in this way are
low rates, a higher credit max, and a better credit score.
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for Rebuilding credit
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