Improve Your Credit Score, No Matter What Your Situation!
In today's society, it's so easy to get access to credit; and because of this, consumers are drowning in debt up to their necks. Being $20,000 in debt is typical in today's society!
Many consumers are in search of some helpful and legitimate strategies to help rebuild credit history, because of the continuous increase of consumer debt. Lots of people fear the "b" word (no, not that one)! The word "budget" usually sends a very negative image to most people's minds; they think they have to pinch every penny and be forced to eat peanut butter and jelly sandwiches for the rest of their life. Thankfully, that's all a myth! Making a great plan for controlling your debt and rebuilding your credit and credit scores, by using different types of credit cards can help eliminate your worries.
Not only are these credit cards beneficial, they also provide for some consumers the only way out, especially if they've been denied a bank account or traditional credit card. Given that it takes two incomes in most households and a great majority of men and women both are in the workforce these days, there is hardly any time to prepare budgets and investigate ways to increase their credit scores.
They say a journey of a thousand miles starts with the first step. Let's take our first step and evaluate both secured and pre-paid credit cards and the pros and cons of each for your situation.
Secured Credit Cards
Advantages- Having a secured credit card is a very easy and cost effective way to build your credit. These secured credit cards can also rebuild and improve damaged credit reports. They work exactly like a traditional credit card.
Negatives- The biggest setback for most people with the secure credit card, is that you have to deposit about $200-$275 in order to "secure" the account when you sign up. For most, this is a lot to ask. These cards also have a tendency to have additional fees (i.e. annual fees) and much higher interest rates (approximately 15% or greater). Even though these may seem like a lot, this card is probably the best choice for rebuilding credit.
b.) Pre-Paid Credit Cards
Advantages- Pre-Paid Credit Cards are a very useful tool, because they give you all of the flexibility and freedom of using your own money. They look, feel, and spend just like a real credit card; they can be used in any occasion that you would use a regular credit card. With these cards, you determine how much money you would like in the account by "loading" money, instead of the company offering you a credit limit based on your financial history. Almost everyone can be approved for this type of card, and yes....even if you've had a bad credit past.
Disadvantages- Think of an alternative option to rebuild or establish credit. This type of account does not report your payment history or account standings to the credit bureaus. If the creditor in which you receive the pre-paid card from does not report your account, then it will NOT improve your credit. Be sure to research and compare which pre-paid cards have the best benefits according to your needs.
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.
Identity Theft Prevention and Identity Theft Protection are a necessity these days. Put a stop to Identity Theft with LifeLock. Life Lock can make sure identity theft never happens to you. To learn more about how to protect yourself and your loved ones from identity thieves, visit lifelock.com
Many consumers are in search of some helpful and legitimate strategies to help rebuild credit history, because of the continuous increase of consumer debt. Lots of people fear the "b" word (no, not that one)! The word "budget" usually sends a very negative image to most people's minds; they think they have to pinch every penny and be forced to eat peanut butter and jelly sandwiches for the rest of their life. Thankfully, that's all a myth! Making a great plan for controlling your debt and rebuilding your credit and credit scores, by using different types of credit cards can help eliminate your worries.
Not only are these credit cards beneficial, they also provide for some consumers the only way out, especially if they've been denied a bank account or traditional credit card. Given that it takes two incomes in most households and a great majority of men and women both are in the workforce these days, there is hardly any time to prepare budgets and investigate ways to increase their credit scores.
They say a journey of a thousand miles starts with the first step. Let's take our first step and evaluate both secured and pre-paid credit cards and the pros and cons of each for your situation.
Secured Credit Cards
Advantages- Having a secured credit card is a very easy and cost effective way to build your credit. These secured credit cards can also rebuild and improve damaged credit reports. They work exactly like a traditional credit card.
Negatives- The biggest setback for most people with the secure credit card, is that you have to deposit about $200-$275 in order to "secure" the account when you sign up. For most, this is a lot to ask. These cards also have a tendency to have additional fees (i.e. annual fees) and much higher interest rates (approximately 15% or greater). Even though these may seem like a lot, this card is probably the best choice for rebuilding credit.
b.) Pre-Paid Credit Cards
Advantages- Pre-Paid Credit Cards are a very useful tool, because they give you all of the flexibility and freedom of using your own money. They look, feel, and spend just like a real credit card; they can be used in any occasion that you would use a regular credit card. With these cards, you determine how much money you would like in the account by "loading" money, instead of the company offering you a credit limit based on your financial history. Almost everyone can be approved for this type of card, and yes....even if you've had a bad credit past.
Disadvantages- Think of an alternative option to rebuild or establish credit. This type of account does not report your payment history or account standings to the credit bureaus. If the creditor in which you receive the pre-paid card from does not report your account, then it will NOT improve your credit. Be sure to research and compare which pre-paid cards have the best benefits according to your needs.
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.
Identity Theft Prevention and Identity Theft Protection are a necessity these days. Put a stop to Identity Theft with LifeLock. Life Lock can make sure identity theft never happens to you. To learn more about how to protect yourself and your loved ones from identity thieves, visit lifelock.com
About the Author:
Ms. Linda Seamore is an advocate for personal safety, dedicated to teaching people how to protect their identity. After reading stacks of mail from identity theft victims, she came across www.Life Lock.com , the best in ID theft protection. Life Lock specializes in the prevention of identity theft vs. after the fact protection. Visit LifeLock and see how to protect yourself!
posted by Debt Consolidation Loan at
12:46 PM
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