Archive for category Credit
Rebuild & Keep Good Credit Ratings by Understanding Your 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 Experian, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.
Secured Credit Card
Secured credit cards are other very popular kinds of credit cards which are secured for the credit card supplier. They require you to open an account with the credit card supplier and maintain some cash balance in that account. This cash balance performs as a security for the supplier of secured credit card. Secured credit cards are not really credit cards because they don’t offer you any credit really and sometimes also referred as debit cards. Such people end up spoiling their credit rating to an extent where they cannot get another unsecured credit card. Even after they have paid off their dues and cleared their debt, their credit rating still haunts them.
Get Benefits by Having Credit Card
There are a lot of benefits associated with credit cards; however, the most important benefit is the convenience that they offer. Most people, this is the prime and the sole reason that instigates them to apply for a credit card. But, today, most merchants do accept credit cards. So, instead of carrying a lot of cash on you (which is both inconvenient and unsafe), you can just carry a small piece of plastic with you. Moreover, you get interest free credit. So, you can buy now and pay later (when your salary arrives) – a great reason to apply for a credit card. To add to that, there are certain merchants that offer interest-free instalment payment plan i.e. you can make a big purchase today and pay for it in instalments on your credit card. So credit cards works as instant long term loan too. Now, another reason to apply for a credit card is the discounts on shopping. This is made possible by the tie-ups between credit card companies and the merchants. So credit cards offer many benefits.