Improve Your Credit Score, No Matter What Your Situation!
Almost everyone can get their hands on some consumer credit; which is one of the main reasons people are falling more and more into debt. Accumulating thousands of dollars in debt is so easy, and has become all too commonplace.
Many consumers are in search of some helpful and legitimate strategies to help rebuild credit history, because of the continuous increase of consumer debt. Lots of people fear the "b" word (no, not that one)! The word "budget" usually sends a very negative image to most people's minds; they think they have to pinch every penny and be forced to eat peanut butter and jelly sandwiches for the rest of their life. Thankfully, that's all a myth! Making a great plan for controlling your debt and rebuilding your credit and credit scores, by using different types of credit cards can help eliminate your worries.
These cards are useful, and are sometimes the only solution for some people, because they may have been denied bank accounts or regular credit cards. Because most families these days have both husband and wife working, in order to have two incomes, that leaves very little time to setup any budgets or search for tips on how to get a better credit score.
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 - Opening a secured credit card account is a simple and affordable way to start building your credit. Secured credit cards will also help you improve and rebuild damaged credit. These cards are used exactly like a standard run of the mill credit cards you are familiar with.
Negatives- The biggest setback for most people with the secure credit card, is that you have to deposit about $200-$275 in order to "secure" the account when you sign up. For most, this is a lot to ask. These cards also have a tendency to have additional fees (i.e. annual fees) and much higher interest rates (approximately 15% or greater). Even though these may seem like a lot, this card is probably the best choice for rebuilding credit.
b.) Pre-Paid Credit Cards
Pros- Pre-Paid Credit Cards can be a great tool because they provide you with the freedom and flexibility of using your own cash. These cards look like real credit cards and can be used for just about any situation that requires a credit card. Instead of granting you a credit limit based on your financial standing, these accounts require you to "load" the card with your own money. Yeah, real cash. Approval for this type of card is easy and almost guaranteed, even if you have credit problems.
Negatives-This may not be the best choice if you're looking to establish or rebuild your credit. Pre-Paid cards may not report your repayment history to the credit bureaus. If the company doesn't report back on your account, this type of card, unfortunately, will not improve your credit. If you look at all of your options available, and compare cards based on your needs, you'll be just fine.
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.
Identity Theft Prevention and Identity Theft Protection are crucial. Stop Identity Theft with LifeLock. Life Lock can guarantee identity theft never happens to you. To learn more about how to protect yourself from identity thieves, visit lifelock.com
Many consumers are in search of some helpful and legitimate strategies to help rebuild credit history, because of the continuous increase of consumer debt. Lots of people fear the "b" word (no, not that one)! The word "budget" usually sends a very negative image to most people's minds; they think they have to pinch every penny and be forced to eat peanut butter and jelly sandwiches for the rest of their life. Thankfully, that's all a myth! Making a great plan for controlling your debt and rebuilding your credit and credit scores, by using different types of credit cards can help eliminate your worries.
These cards are useful, and are sometimes the only solution for some people, because they may have been denied bank accounts or regular credit cards. Because most families these days have both husband and wife working, in order to have two incomes, that leaves very little time to setup any budgets or search for tips on how to get a better credit score.
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 - Opening a secured credit card account is a simple and affordable way to start building your credit. Secured credit cards will also help you improve and rebuild damaged credit. These cards are used exactly like a standard run of the mill credit cards you are familiar with.
Negatives- The biggest setback for most people with the secure credit card, is that you have to deposit about $200-$275 in order to "secure" the account when you sign up. For most, this is a lot to ask. These cards also have a tendency to have additional fees (i.e. annual fees) and much higher interest rates (approximately 15% or greater). Even though these may seem like a lot, this card is probably the best choice for rebuilding credit.
b.) Pre-Paid Credit Cards
Pros- Pre-Paid Credit Cards can be a great tool because they provide you with the freedom and flexibility of using your own cash. These cards look like real credit cards and can be used for just about any situation that requires a credit card. Instead of granting you a credit limit based on your financial standing, these accounts require you to "load" the card with your own money. Yeah, real cash. Approval for this type of card is easy and almost guaranteed, even if you have credit problems.
Negatives-This may not be the best choice if you're looking to establish or rebuild your credit. Pre-Paid cards may not report your repayment history to the credit bureaus. If the company doesn't report back on your account, this type of card, unfortunately, will not improve your credit. If you look at all of your options available, and compare cards based on your needs, you'll be just fine.
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.
Identity Theft Prevention and Identity Theft Protection are crucial. Stop Identity Theft with LifeLock. Life Lock can guarantee identity theft never happens to you. To learn more about how to protect yourself from identity thieves, visit lifelock.com
About the Author:
Consumer advocate Linda Seamore is dedicated to educating people on how to protect their identity. After much research on identity theft and its victims, she found out about Life Lock , the industry leader in ID theft protection. Life Lock is a proactive identity theft protection agency. Visit www.LifeLock.com and discover how to protect yourself.
posted by Debt Consolidation Loan at
12:46 PM
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