Better Your Credit Even With After Credit Denials
In the times we're living in, many people can easily attain consumer credit. People living in the United States are constantly finding themselves under a mound of debt that only seems to continue to grow. Being as much as $15,000 in debt is now more common than one might think.
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.
They say that the way to eat an elephant is one bit at a time. Let's take our first bit and analyze both secured and pre-paid credit cards, and the cons and pros with 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.
Disadvantages - A slight drawback from these types of cards is that in order to get one, you must put down a significant deposit, somewhere between $200 and $300 in order to secure them. The credit companies may also charge you yearly fees that make the card expensive. In addition, the interest rate on these cards tends to be higher than the norm. However, these cards can be your resolution to getting a better credit score.
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.
Cons - If your desired outcome is improved, established credit, be careful. It is not always the case that these kinds of cards report your payment history to any of the credit bureaus. If they don't, then you are not doing anything to rebuild or establish good credit history. If you carefully select the card company and do your homework, however, these can still be a good option.
You should also take into consideration that pre-paid cards are not accepted in all circumstances. For instance, rental agencies for cars and hotels may not allow you to make payment using one of these or to secure the rental. To be safe, you should call in advance and verify the various payment methods that vendors like these accept.
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.
They say that the way to eat an elephant is one bit at a time. Let's take our first bit and analyze both secured and pre-paid credit cards, and the cons and pros with 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.
Disadvantages - A slight drawback from these types of cards is that in order to get one, you must put down a significant deposit, somewhere between $200 and $300 in order to secure them. The credit companies may also charge you yearly fees that make the card expensive. In addition, the interest rate on these cards tends to be higher than the norm. However, these cards can be your resolution to getting a better credit score.
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.
Cons - If your desired outcome is improved, established credit, be careful. It is not always the case that these kinds of cards report your payment history to any of the credit bureaus. If they don't, then you are not doing anything to rebuild or establish good credit history. If you carefully select the card company and do your homework, however, these can still be a good option.
You should also take into consideration that pre-paid cards are not accepted in all circumstances. For instance, rental agencies for cars and hotels may not allow you to make payment using one of these or to secure the rental. To be safe, you should call in advance and verify the various payment methods that vendors like these accept.
posted by Debt Consolidation Loan at
9:15 AM
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