Many people have many different needs to why they have a credit card. There are different changes in life that occur, in which a credit card may soothe a small financial problem. Regardless to the reason, there are multiple uses for a credit card for any type of situation.
Sometimes while applying for a credit card, one may find out that their credit score may not be top notch. If this happens, this is okay; there are options that alleviate this sore spot. There is a process that it takes to re-build the credit score and there are several credit cards that will work with the customer during this process. Many times people often think that a credit card is not the way to re-build, but that is not always the case.
Using a Top Credit Card: Secured Type
Some people actually use pre-paid credit cards and these cards do not generally affect the credit score. However the secured type of credit card raises the FICO score. The secured card is backed by your own money. The financial institution is n not taking a risk with their money, so even if you have bad credit, it will not affect you getting a secured card. For instance, if you have five hundred dollars in the account associated with the card that is your monthly credit limit.
- Capital One Secured Card – this company offers a MasterCard as their brand of cards. This company is one of the most popular companies that offer a secure card without all of the additional hassle. The company has straightforward terms and actually has customer service that is almost always available in case of any questions. This company also avoids a bunch of the extra fees that are associated with most secured cards. Along with the card, the company give you access to monitor your credit score along your journey. Can you see why this company is at the top of the list?
- DCU Secured Card- This company uses a Visa Card. One popular reason this company is at the top is because of their low APR rate and there is no annual fee. This card has many perks that will allow the customer to benefit in many ways by using this card. It does have a late fee associated with the card, but the penalty will affect your APR.
With the secured card, as soon as you have shown that you can be trusted with a card, it will help your credit. In many cases, this help will allow the customer to get another type of credit card that is unsecured. While the secured cards come from your money, the unsecured cards come from the financial institutions money.
Using a Top Credit Card: Unsecured Type
The most credit cards that are used are the unsecured type of card. This category of cards is issued by the institution like a bank or credit union. The credit limit for these cards is based on your income and your credit. So that is why it is best to go through the process of re-building the credit to a good score to qualify.
- Total Card – this is used by Visa. This may be a foreign brand to many but it has many good perks for an unsecured card. The credit limit usually starts around three hundred dollars and there is a fee for processing. There is a monthly service fee for this card and a hefty late fee for late payments.
- Credit One Card- This card is issued by Visa. It has a lower APR with a higher max out limit. Depending on your credit, depends on your limit. There are membership fees and sign up fees. So customers be careful and read the terms before signing up.
- Credit One with Gas Rewards – This is for the ones that have reached a certain credit score. This card offers rewards associated with gas. There are fees that should be looked at before getting this card. After continuous good payments, the company automatically raises the credit limit.
- Capital One Quick Silver One Rewards – This card is for mediocre credit scores. The APR rate in the beginning is very attractive. There are other fees that should be watched out for as well. As a person’s credit increases, the benefits become better.
In order to rebuild the credit, there is a process. The process can be long and drawn out at certain times. But this does not meant that good credit cannot be attained. It just takes time to get it done. Below is a list and order of the process snapshot:
- Get a secured card
- Review the terms
- Charge less than the max limit
- Pay back every month
- Check your credit as much as possible
- Re—evaluate the reason for poor credit
- Stay out of financial trouble
- Watch credit score go up