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Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards
SECURED CREDIT CARDS
Secured Credit Card is similar to a prepaid credit card since
the funds you are using are actually yours and not the issuer of
the credit card. Generally people who apply for secured credit
card or prepaid credit card are people with poor credit or
unemployed. Prepaid Credit Card spending limit is the amount of
money you loaded to the card. There are no interest or finance
charges on a prepaid card. With secured credit card, your credit
line could be from 50% to 100% of your deposit depending on the
institution giving you the secured credit. Therefore the company
giving you the secured credit card has zero risk.
Secured credit card can be very beneficial because it gives you
an opportunity to rebuild your credit history and you are able
to make purchases just as if you had an unsecured credit card.
Many companies require that you have a credit card to make
purchases, such as car rental, airline tickets, etc. Ensure
that the company issuing the secured credit, routinely reports
customers* payment history to any of the three main credit
bureaus namely Experience, Equifax and Trans Union. This
reporting to the credit bureaus will rebuild your credit
history over time.
Closing unnecessary accounts and consolidating your bills to
make payments more manageable could be an advantage financially.
By not applying for too much credit within a short period of
time is another factor that will help in rebuilding your credit
rating. Additionally, even though secured credit is like prepaid
cards, they do have certain fees attached. Benefits are similar
to that of an unsecured credit card, such as usually being paid
interest on your balance in the bank, using Automated Teller
Machines (ATM) to make deposits, withdrawals, and making
purchases at participating merchants. Following the above
steps will strengthen your credit rating.
UNSECURED CREDIT CARDS
Unsecured cards are issued to individuals with good to excellent
credit rating. Credit ratings depend on certain criteria, such
as one*s ability to repay loans. These criteria include payment
history, employment history, and financial stability. Individuals
with excellent credit will most likely receive a lower interest
rate. A major factor in maintaining excellent credit is making
your loan payments on time thus avoiding late fee penalties.
Customers should read the credit agreement to ensure that they
understand their obligation to the creditor. Making payments on
time will strengthen your credit rating. Unsecured credit cards
has numerous advantages such as low interest rates, high credit
limit, business name options, no annual fees, and low APRs on
balance transfers up to 12 months. Closing unnecessary accounts
and consolidating your bills to make payments more manageable
could be an advantage financially. By not applying for too much
credit within a short period of time is another factor that will
help in maintaining a good credit rating.
REBUILDING YOUR CREDIT
It takes time, patience, and consistency. If you consistently
pay your bills on time, you will see an improvement in your
credit ratings over time. There are no quick fixes for improving
your credit report except for mistakes or inaccuracies that can
be corrected, hopefully in your favor. Your credit information
is maintained by the credit bureaus namely Experience, Equifax,
and Trans Union for seven years. Therefore poor credit
information will remain on your report for seven years. The
good thing is that as negative information disappears with
positive information, this will definitely rebuild your credit
rating. Closing unnecessary accounts and consolidating your
bills to make payments more manageable could be an advantage
financially. By not applying for too much credit within a short
period of time is another factor that will help in rebuilding
your credit rating.
Applying for secured credit card can be very beneficial because
it gives you an opportunity to rebuild your credit history, and
you are able to make purchases just as if you had an unsecured
credit card. Many companies require that you have a credit card
to make purchases, such as car rental, airline tickets, etc.
Ensure that the company issuing the secured credit, routinely
reports customers* payment history to any of the three main
credit bureaus namely Experience, Equifax and Trans Union. This
reporting to the credit bureaus will rebuild your credit history
over time.
BUSINESS CREDIT CARDS
Business credit cards are very popular for small business owners
because of the many benefits they offer. Benefits includes 0%
Intro APR on balance transfers, no annual fees, high credit
limit, low interest rates, cash rewards, bonus miles, free
online account management to choosing card design etc., At
iCreditOnline.com we have some of the best business credit cards
from American Express, Advanta, Chase, Bank One, Bank of America,
Discover, Citibank, Household Bank and more, with online credit
card approval. Why waste time going to a bank when you can get a
decision in less than 60 seconds with secure online credit card
application. Online Credit Card Approval with Online Credit Card
Application is fast and easy!
STUDENT CREDIT CARDS
Having a student credit card while still living at home or
attending school away from home can be an advantage. It gives
the student the opportunity to establish credit at an early age
and to start asserting their independence. It comes in handy
in case of emergency, it is less trouble and safer to carry a
student credit card than to carry cash. Parents find student
credit cards to be very convenient. They are able to make
deposits to their children*s account while they are away from
home. Students should be careful with their credit card receipts
to avoid identity thief.
If you consistently pay your bills on time, obtaining students
credit cards is a good way to established credit rating and start
building a good credit history while in school. Establishing and
maintaining a good credit rating will make it easy to purchase
a car, a home or obtaining a personal loan in the future. For
students who are not committed to their financial obligation,
getting a student credit card is not a good idea. Running up
balances, finding yourself in debt, unable to make monthly
payments will destroy your credit rating.
Student*s credit cards generally have high interest rates. At
iCreditOnline.com we offer some of the best student credit cards
from Chase and Discover with 0% APR introductory rate for 6
months, no annual fees and online account access. Online credit
card approval with online credit card application is fast and
easy!
EXPLANATIONS OF SOME OF THE CREDIT CARD TERMINOLOGY
0% Intro APR Credit Card or Balance Transfer Credit Card - gives
you the benefit of using this credit card without making any
interest payment on the principal for a stated period of time.
This credit card is marketed to individuals with good credit
rating who want to transfer balance from a high interest credit
card to a 0% intro APR credit card.
Cash Rewards or Cash Back Credit Card - earns a percentage on
purchases made. This reward or cash back is credited to your
account.
Debit Card - takes the place of carrying a checkbook or cash.
This card is used like a credit card with certain limitations,
such as not being able to rent a car. Purchase transactions are
contingent upon having enough funds in your checking or savings
account to cover the purchase. Verification of funds requires
entering your Personal Identification Number (PIN) at a
point-of-sale terminal.
Low Interest Credit Card - saves you money. Having a good credit
rating qualifies you for some of the best low APR credit card
offers.
Prepaid Credit Card - spending limit is the amount of money you
loaded to the card. There are no interest or finance charges on
a prepaid card. Therefore the company giving you the prepaid
credit card has zero risk. Generally people who apply for
prepaid credit card are people with poor credit or unemployed.
Secured Credit Card - is secured by the amount of funds you have
in your account. Your credit line could be from 50% to 100% of
your deposit depending on the institution giving you the secured
credit.
Unsecured Credit Card - is issued to individuals with good
to excellent credit rating. Credit ratings depend on certain
criteria, such as one*s ability to repay loans. These criteria
include payment history, employment history, and financial
stability. Individuals with excellent credit will most likely
receive a lower interest rate and can receive instant online
credit card approval. A major factor in maintaining excellent
credit is making your loan payments on time thus avoiding late
fee penalties.
Travel Rewards Credit Card - benefits may include travel
accident insurance, free rental car collision/loss damage
insurance, rebate on gasoline purchases, frequent flyer points
or bonus miles towards airline flights, free quarterly and
annual account summaries.
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ABOUT THE AUTHOR:
David Hall owns iCreditOnline.com. He offers free downloadable,
high quality guides on credit repair, credit ratings, credit
scoring, debt consolidation and more. He has tools for finding a
wide range of financial services including secured and unsecure
cards, student and business cards, auto loans, and more from the
most reputable companies in the industry. You can also compare
multiple credit card offers, securely complete an online credit
card application, and receive a credit decision in less than 60
seconds. Visit David*s site today: http://www.iCreditOnline.com
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