Noreen Ruth asked:
How can you prove your credit worthiness when no one will give you a chance? If you have bad credit, or no credit at all, you understand how difficult it can be to get moving in the right direction. Luckily, in today’s credit card market there are a variety of options available to assist you. Let us tell you about some of the choices you have to get your credit on the right track:
Secured Credit Cards
Secured credit cards are available to almost any individual. That’s because they require a security deposit which guarantees your credit line. For example, if you deposit $300, you’ll receive a credit line of $300. This may not seem like a true “credit line”, but the charges you make with a secured credit card will be reported to the 3 major credit bureaus, and timely payments will show a positive track record on your credit report. You can use this to your advantage to build or improve your credit history! In time, you can move on to a better credit card offer with no security deposit, lower fees and a better interest rate.
Unsecured Credit Cards
An unsecured credit card is a “traditional” form of credit card which requires no security deposit. Your interest rate and credit line are based upon your credit history. Although most unsecured credit cards are out of reach for many people with poor / no credit, some credit card companies offer unsecured credit cards designed specifically for these individuals. Normally, these credit cards have higher rates and additional fees when compared to standard “unsecured credit cards”, but they do no require a security deposit like secured credit card offers.
Prepaid Credit Cards
A prepaid credit card is like a prepaid phone card. They operate on a “pay-as-you-go” basis and can be used anywhere credit cards are accepted. They offer many benefits, and in most cases, are very easy to use and manage. But be aware, not all prepaid credit cards report your activity to the credit agencies. While you may benefit from the safety and convenience of not carrying cash, you won’t be building or improving your credit if the prepaid credit card company doesn’t report your activity to the major credit bureaus. Luckily, many prepaid credit cards report your credit card activity or offer this option for an additional monthly fee.
Bryan
How can you prove your credit worthiness when no one will give you a chance? If you have bad credit, or no credit at all, you understand how difficult it can be to get moving in the right direction. Luckily, in today’s credit card market there are a variety of options available to assist you. Let us tell you about some of the choices you have to get your credit on the right track:
Secured Credit Cards
Secured credit cards are available to almost any individual. That’s because they require a security deposit which guarantees your credit line. For example, if you deposit $300, you’ll receive a credit line of $300. This may not seem like a true “credit line”, but the charges you make with a secured credit card will be reported to the 3 major credit bureaus, and timely payments will show a positive track record on your credit report. You can use this to your advantage to build or improve your credit history! In time, you can move on to a better credit card offer with no security deposit, lower fees and a better interest rate.
Unsecured Credit Cards
An unsecured credit card is a “traditional” form of credit card which requires no security deposit. Your interest rate and credit line are based upon your credit history. Although most unsecured credit cards are out of reach for many people with poor / no credit, some credit card companies offer unsecured credit cards designed specifically for these individuals. Normally, these credit cards have higher rates and additional fees when compared to standard “unsecured credit cards”, but they do no require a security deposit like secured credit card offers.
Prepaid Credit Cards
A prepaid credit card is like a prepaid phone card. They operate on a “pay-as-you-go” basis and can be used anywhere credit cards are accepted. They offer many benefits, and in most cases, are very easy to use and manage. But be aware, not all prepaid credit cards report your activity to the credit agencies. While you may benefit from the safety and convenience of not carrying cash, you won’t be building or improving your credit if the prepaid credit card company doesn’t report your activity to the major credit bureaus. Luckily, many prepaid credit cards report your credit card activity or offer this option for an additional monthly fee.
Bryan
