Student Cards for Rebuilding
Credit - Understanding The Opportunities
When people have
Credit, how do they
tell which Student Cards
to pick when there are so many possibilities?
The information below will break down a few types
of cards to give you a useful outline
of the pros of each:
Cash Back - With a Cash Back
card, customers are offered a rebate that is the same as
a fraction of their transactions. For instance,
if somebody has a Cash Back
solution that awards 5% cashback
on food, fuel, and pharmacy
items, as purchases increase and rewards accumulate, they can be cashed in. If you
spend one hundred and fifty dollars in fuel, food,
and pharmacy items every 5-7 days, by
the conclusion of a year, $390
in cash back rewards would have accumulated.
Rewards Points - In lieu
of rewarding customers with money back, some lenders
give points programs. Customers earn
rewards for making purchases. As purchases are made, the points
increase. After a certain amount of points add up they can be redeemed for great stuff, such as
free merchandise, gift items, magazines, etc.
It is smart to be aware of whether or not the Student Cards
for Rebuilding Credit that you want will offer
a redeemable rewards program.
Fuel Rewards - Lenders
can be considerate of the cost
of fuel and will give incentives to
their customers for their purchases by giving them a free
gas card. As the card is used, points are accumulated. Once enough points have been earned you can get a
free prepaid gas card. The funny thing is, with some cards redeemable fuel rewards can be accumulated
while buying gas.
Points Redeemable for Free Hotel Stays, Rental Cars or Frequent Air Traveler Miles - When purchases are made with these cards, redeemable points that can be cashed in for free travel miles are earned. As the points add up, they turn into vouchers that can be used for discounted or free travel arrangements like rental cars, hotels, or even airline tickets. These programs are great for frequent travelers.
0% Introductory Interest Rates - Customers that utilize these cards are not charged any interest or finance charges for a certain number of months.
The promotional period usually lasts anywhere from 6-12 months.
Generally, customers take advantage of promotions such as this
to move outstanding balances from their interest bearing Student Cards
to one of these, then pay the balances off within the promotional period. Paying the bill on or before the due date is key.
When the first payment is late, generally
the interest free rates go up to a much higher
rate. Folks that are eligible for
Student Cards for Rebuilding
Credit, and have the chance to get an introductory period free of finance charges
should consider this type of card.
Secured Cards to Build Creditworthiness - People with one of these
simply deposits a specified amount of cash into an account specified by the secured card issuer.
This becomes the card's collateral Then, a credit card is
issued with a line of credit equal to
the amount that has been deposited in the account. As the card is used your available credit is recalculated, low interest
monthly payments are calculated, and a monthly invoice
is sent. If transactions are being approved, a relatively small monthly payment is expected. Secured Cards to Build Creditworthiness
are awesome because they perform like
normal credit cards allowing people
to complete all kinds of transactions including booking travel accommodations such as rental cars
that typically do not accept debit
cards. When applicants have bad credit approval is generally
guaranteed even if your credit is poor. This is good because many
credit-rebuilding card companies report your repayment history
to Experian, Equifax, and Trans Union. This is a good
method to show creditworthiness by showing scheduled
payments no matter if you have Rebuilding
credit or not. Once you have paid
six to twelve payments in a row, most times the bank that gave you the card will allow you to make purchases over your current limit without
asking for another deposit to the initial secured account.
Pre-paid Credit Cards - With
a Pre-paid card, you get most of the benefits of a credit card without the debt. Just like
a checking account, you put money in and this becomes
the credit limit. After 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
work well as gifts, they offer the same flexibility as a check card, and they help people that cannot
get a typical bank account.
Quick approval is usually not a problem regardless of
your credit score and there is
no need for the issuer to send any inquiries to the credit bureaus.
With all of the different varieties
of Student Cards
for Rebuilding credit and
incentives that exist, there is something for everyone. Seek
Student Cards that make sense for your situation that will allow you to control your spending habits. The most important thing is to always
try to keep your purchases at less than half of your credit limit and make more than the minimum payment every month. Great credit is a wonderful
thing to have.
To guarantee that you keep building the best FICO report, obey these easy guidelines:
1. Always have your outstanding balance less than the
credit max. In other words, it is not smart to
"max out". The banks encourage their cardholders to carry
an account that is generally half
of the available balance on any
Student Cards for Rebuilding Credit.
2. Make at least the minimum payment as scheduled. Even if you cannot make more than the minimum payment due, pay it. When payments are made more than 30 days late, that information must be forwarded to Experian, Equifax, and Trans Union. This is not good for your FICO report. As a result, customers may also have an increased interest rate as a result of a solitary delayed payment. Hence it is smart to pay on time.
3. Repay the whole thing off every time you can.
When you make purchases, do your best to
pay the balance back down to zero at least once a year. Once you do this it is okay to
start swiping your card for purchases again then take a few months to pay the balance off again, and don't stop this habit.
This pattern demonstrates to the issuing companies
that you can be a great customer. Once this sequence is repeated a couple of times, you could qualify for
low rates, a higher credit max, and a better credit profile.
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for Rebuilding credit
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