Better Your Credit Even With After Credit Denials
In this day and age where most people have easy access to a consumer credit, Americans are finding themselves sinking deeper and deeper into debt. Racking up a mere $10,000 in debt is now easy and all too common.
The desire for sure and proven ways to rebuild and renew credit history is indeed on the rise, with more and more people getting into debt and feeling the overwhelming pressures of it. Unfortunately for most people, the term "budget" has a negative connotation. It seems more like hell than a save haven of rescue. However, the use of a particular type of credit card has proven to not only rebuild personal credit and credit scores, but to dispel the negative connotation of the word budget.
Not only are these credit cards beneficial, they also provide for some consumers the only way out, especially if they've been denied a bank account or traditional credit card. Given that it takes two incomes in most households and a great majority of men and women both are in the workforce these days, there is hardly any time to prepare budgets and investigate ways to increase their credit scores.
They say a journey of a thousand miles starts with the first step. Let's take our first step and evaluate both secured and pre-paid credit cards and the pros and cons of each for your situation.
Secured Credit Cards Pros - Obtaining a secured credit card account is a quick, easy, and affordable way to build your credit. These cards will also help to better your damaged credit by slowly rebuilding it. They are used the same way you use any other card and are taken by vendors anywhere a regular debit or credit card can be used.
Disadvantages - A slight drawback from these types of cards is that in order to get one, you must put down a significant deposit, somewhere between $200 and $300 in order to secure them. The credit companies may also charge you yearly fees that make the card expensive. In addition, the interest rate on these cards tends to be higher than the norm. However, these cards can be your resolution to getting a better credit score.
Pre-Paid Credit Cards Pros - A pre-paid credit card can be a great way to provide you with the freedom and flexibility of having your own credit card, without having to be in debt. While these cards look and feel like every other credit card, and can be spent in all the same places, these cards require you to put money on the. In effect, you are spending your own money just like cash. The approval process for this type of card is easy and is a definite guarantee.
Cons - If your desired outcome is improved, established credit, be careful. It is not always the case that these kinds of cards report your payment history to any of the credit bureaus. If they don't, then you are not doing anything to rebuild or establish good credit history. If you carefully select the card company and do your homework, however, these can still be a good option.
You might also consider that Pre-paid cards cannot be used in all situations. For example: hotels and car rental agencies may not allow you to use a pre-paid credit card to secure your rentals. It's always a good idea to call ahead first and ask each company their policy before entering into any transaction.
The desire for sure and proven ways to rebuild and renew credit history is indeed on the rise, with more and more people getting into debt and feeling the overwhelming pressures of it. Unfortunately for most people, the term "budget" has a negative connotation. It seems more like hell than a save haven of rescue. However, the use of a particular type of credit card has proven to not only rebuild personal credit and credit scores, but to dispel the negative connotation of the word budget.
Not only are these credit cards beneficial, they also provide for some consumers the only way out, especially if they've been denied a bank account or traditional credit card. Given that it takes two incomes in most households and a great majority of men and women both are in the workforce these days, there is hardly any time to prepare budgets and investigate ways to increase their credit scores.
They say a journey of a thousand miles starts with the first step. Let's take our first step and evaluate both secured and pre-paid credit cards and the pros and cons of each for your situation.
Secured Credit Cards Pros - Obtaining a secured credit card account is a quick, easy, and affordable way to build your credit. These cards will also help to better your damaged credit by slowly rebuilding it. They are used the same way you use any other card and are taken by vendors anywhere a regular debit or credit card can be used.
Disadvantages - A slight drawback from these types of cards is that in order to get one, you must put down a significant deposit, somewhere between $200 and $300 in order to secure them. The credit companies may also charge you yearly fees that make the card expensive. In addition, the interest rate on these cards tends to be higher than the norm. However, these cards can be your resolution to getting a better credit score.
Pre-Paid Credit Cards Pros - A pre-paid credit card can be a great way to provide you with the freedom and flexibility of having your own credit card, without having to be in debt. While these cards look and feel like every other credit card, and can be spent in all the same places, these cards require you to put money on the. In effect, you are spending your own money just like cash. The approval process for this type of card is easy and is a definite guarantee.
Cons - If your desired outcome is improved, established credit, be careful. It is not always the case that these kinds of cards report your payment history to any of the credit bureaus. If they don't, then you are not doing anything to rebuild or establish good credit history. If you carefully select the card company and do your homework, however, these can still be a good option.
You might also consider that Pre-paid cards cannot be used in all situations. For example: hotels and car rental agencies may not allow you to use a pre-paid credit card to secure your rentals. It's always a good idea to call ahead first and ask each company their policy before entering into any transaction.
posted by Debt Consolidation Loan at
4:50 AM
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