Top Cards for Building
Credit - Knowing The Choices
When folks have
Credit, how can they
know which Top Cards
to select when there are so many choices?
The information below will expand on a few varieties
of cards to offer a useful outline
of the pros of each:
Cash Back - With a Cash Back
card, you may be offered a rebate equal to
a percentage of their transactions. For example,
if there is a Cash Back
option that awards 5% cash back
on food, gas, and pharmacy
purchases, as the cash back rewards add up they can converted to cash. If you
use one hundred and fifty dollars in fuel, groceries,
and drugstore purchases weekly, by
the end of a 12-month period, about four hundred dollars
in rebates would have accumulated.
Redeemable Points - In lieu
of giving cash rebates, some lenders
present customers with redeemable rewards. Customers earn
rewards when purchases are made. Every time the card is used, the points
accumulate. When you earn enough points they can be cashed in for all kinds of goodies including
free travel, gift cards, magazines, etc.
It is important to know whether or not the Top Cards
for Building Credit you are considering offers
a points program.
Fuel Bonuses - Card Issuers
are often times understanding about the cost
of gas and want to compensate
consumers for using their credit card by offering them a prepaid
fuel card. As transactions are completed, points are accumulated and summarized. Once enough points have been earned they can be turned in for a
free prepaid gasoline card. The cool thing is, with some cards redeemable fuel rewards can be accumulated
while you are getting gas.
Rewards for Free Hotel Stays, Rental Cars or Frequent Air Traveler Miles - When purchases are made with these cards, customers can earn frequent traveler's points that can be redeemed for free travel. After an accumulation of a certain number of points, they can be applied toward all kinds of travel arrangements including free air travel. Frequent travelers really like these rewards.
Zero Percent Promotional Interest Rates - Finance charges are not applied on these cards for a specified amount of time.
The period where no finance charges are being applied typically varies from 6-12 months.
Generally, customers use promotions such as this
to transfer balances from their high interest Top Cards
to one of these, then pay it off while there are no finance charges being accrued. Making monthly payments on time is incredibly important.
When a payment is paid after the due date, typically
the interest free introductory rates adjust to a higher
rate. Folks that are eligible for
Top Cards for Building
Credit, and have the chance to get an interest free period
ought to think about this opportunity.
Secured Cards - People with a secured credit card
would insert a few hundred to a few thousand dollars, depending on what they could afford, into an account specified by the secured card issuer.
This becomes the card's collateral After the deposit is made a credit card is
issued with a spending limit in
the amount that has been deposited in the account. Each time you swipe your card the amount of that transaction is deducted from your available credit balance, low interest
monthly payments are calculated, and a bill
is given to you. If purchases are made an affordable repayment plan will be created. Secured Cards
are awesome because they function the same as
standard credit cards allowing customers
the freedom to book travel arrangements like vehicle rentals
that usually do not accept prepaid or debit
cards. One of the best things about the application process is that approval is ordinarily
guaranteed whether you have good credit or not. But do not forget that many
secured card issuers submit your repayment history
to the credit bureaus. This can be a good
way to prove you are creditworthy by showing timely
payments no matter if you have Building
credit or not. After paying
several payments on or before their due date, most times the bank that gave you the card will allow you to make purchases over your current limit without
asking for more cash to be put into the account that was used to set up the card.
Prepaid Credit Cards - With
a Prepaid card, there is no question about the credit limit. Just like
a regular bank account, a certain amount of money is deposited into an account and this is
the amount that can be used for purchases. When the prepaid credit card
balance becomes depleted, it can be reloaded with more money and used again. Reloadable prepaid cards
work well for budgeting, they offer the same flexibility as a check card, and they are generally granted to those that may not qualify to
obtain a normal bank account.
Quick approval is typically granted despite
your credit report and there is
no need for the prepaid company to deal with the credit bureaus.
With all of the different kinds
of Top Cards
for Building credit and
rewards that are offered, it is easy to identify the best solution for your situation. Consider
Top Cards that give the benefits that fit your situation. The most important thing is to be sure to
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 terrific
To make certain that you keep building a top notch FICO score, follow these simple tips:
1. Always have a balance at no more than half of the
credit limit. Simply put, do not
"go wild". Most people with excellent credit make it a point to carry
a balance that is generally forty percent
of the limit on any
Top Cards for Building Credit.
2. It is important to pay the bill when it is due. 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. If you miss a payment, it may be forwarded to Experian, Equifax, and Trans Union. This is bad for the consumer's FICO profile. And let's not forget the fact that when this happens you may also have a higher interest rate as a result of just this one late payment. Therefore it is smart to pay the bill.
3. Pay all balances down to zero every couple months.
When purchases are made, do your best to
pay it all off as many times a year as possible. Afterward, it is smart to
start using the card again and after a couple of billing cycles, pay the whole thing off just like you did before, and keep this cycle going.
This cycle shows the issuers
that you are a great customer. Most lenders reward customers like this with
low rates, a higher limit, and a higher credit score.
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