Articles
Newsletter
| Establishing or Repairing Your Credit: Credit Cards are Your Key |
 |
 |
 |
| Written by Kris Calusa |
| Sunday, 17 August 2008 17:28 |
|
Sometimes you can't get a break! Can't qualify for a credit card? Well, cash secured credit cards are the answer to your problem! Anyone can apply for and obtain one, and they offer a great stepping stone to other financial products and financial freedom. Secured credit cards are great tools to use if you need to establish a credit history or reestablish damaged credit. Any number of reasons may exist in your life right now that might make it difficult to qualify for a standard credit card: bankruptcy, divorce, poor credit history or no credit history at all. If you find it difficult or impossible to qualify for a credit card, a cash secured credit card is the answer to your needs - they give you the opportunity to build a credit history, posturing yourself for more advanced credit products. A secured or prepaid credit card is usable in all applications where a standard credit card is accepted; the difference is that with a prepaid card the charges are backed by money that you deposit before you use the card. Banks differ in the amount of money that they require up front, but the amount is usually between $0 and $500. As you might imagine, cards that require smaller balances usually change greater fees for account maintenance than those cards that require balances up front, but they give you the opportunity to build a positive balance incrementally, spreading out the initial outlay of cash. Even though a prepaid or secured credit card is funded by your own cash it will help immensely in building your credit because the issuing bank reports your usage and payment history to the three big credit bureaus, who really control your credit history and rating information. Secured credit cards are a guaranteed advantage - anyone can get one, and they give you the chance to show that you are willing to make your payments on time. This will have a quick and positive impact on your credit rating as long as you remember to maintain your account and make all payments on time. You also show plan so that you keep the balance owed on the card at an acceptable level, around 40% or less of the maximum allowed. After nine to eighteen months of good payment performance credit companies will usually give you the opportunity to convert the credit card to a standard credit card. With continued maintenance of your account you will build (or rebuild) a healthy credit history that you can build on with increasingly flexible credit vehicles. Look for future articles that will describe how you can build upon the incremental credit that you establish with a secured credit card. About the Author: You can find the best credit card to fit your needs at our site. We offer a large number of cards from various credit card vendors. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
Stumble It!
Members : 1254
Content : 2297
Web Links : 1
Content View Hits : 309422
Content : 2297
Web Links : 1
Content View Hits : 309422