Bad Credit? Improve It With These Tips
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.
These credit cards can be great, providing consumers an exit out of debt and out of hell, particularly if they have been unable to get a bank account or a regular credit card. In current times, it has become necessary for there to be two incomes in any household. Because of this, both men and women must work, leaving barely and time to spare for preparing budgets, or planning for the financial future.
It is said that the way to run a marathon is one step at a time. Let's take our first step by evaluating both pre-paid and secured credit cards and their pros and cons, particular to your situation.
Secured Credit Cards Advantages - Getting a secured credit card account is an easy and cheap way to begin boosting your credit. Damaged credit can also be improved with these types of cards. They can be used the same way in which you would use and Visa or Mastercard.
Cons - A major disadvantage to these kinds of cards is that you have to put money down in order to secure them. There is generally some sort of deposit that is required with your application. Lots of people find this to be challenging. They also tend to have a much higher interest rate than a standard card, something like 15% or more and can charge you additional fees. In spite of these negative points, they can be answer for those looking to better their credit rating.
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 - The problem with these kinds of cards is that they may or may not actually report your repayment history to the credit bureaus. If they do not do this, than you are not doing anything to help your credit. Therefore, buyer be ware about the ones that you choose, especially if your goal is to rebuild your credit. Select a card company with precaution and do your homework please!
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.
These credit cards can be great, providing consumers an exit out of debt and out of hell, particularly if they have been unable to get a bank account or a regular credit card. In current times, it has become necessary for there to be two incomes in any household. Because of this, both men and women must work, leaving barely and time to spare for preparing budgets, or planning for the financial future.
It is said that the way to run a marathon is one step at a time. Let's take our first step by evaluating both pre-paid and secured credit cards and their pros and cons, particular to your situation.
Secured Credit Cards Advantages - Getting a secured credit card account is an easy and cheap way to begin boosting your credit. Damaged credit can also be improved with these types of cards. They can be used the same way in which you would use and Visa or Mastercard.
Cons - A major disadvantage to these kinds of cards is that you have to put money down in order to secure them. There is generally some sort of deposit that is required with your application. Lots of people find this to be challenging. They also tend to have a much higher interest rate than a standard card, something like 15% or more and can charge you additional fees. In spite of these negative points, they can be answer for those looking to better their credit rating.
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 - The problem with these kinds of cards is that they may or may not actually report your repayment history to the credit bureaus. If they do not do this, than you are not doing anything to help your credit. Therefore, buyer be ware about the ones that you choose, especially if your goal is to rebuild your credit. Select a card company with precaution and do your homework please!
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
4:51 AM
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