Improve Your Credit Score, No Matter What Your Situation!
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.
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.
These cards are useful, and are sometimes the only solution for some people, because they may have been denied bank accounts or regular credit cards. Because most families these days have both husband and wife working, in order to have two incomes, that leaves very little time to setup any budgets or search for tips on how to get a better credit score.
Your journey to financial freedom starts with YOU taking the first step. Let us begin first, by evaluating the positives and negatives of both the secured and the pre-paid credit cards.
1. 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.
Disadvantages- One of the major issues with this type of cards, is that in order to “secure” the card, you have to deposit anywhere from $200 to $300 when you apply. This can be a pretty hefty requirement. They also have much higher interest rates (15% and up), additional fees like annual fees that may cost about $50. This card, despite its minor setbacks, is a great option for those who want to rebuild their credit.
2. 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.
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.
Please remember that Pre-Paid cards cannot be used in every situation. Hotel and car rental agencies, for example, may not let you use the pre-paid card to book a room or secure your rental. Just be sure to call in advance and ask about the company policy before you begin your booking.
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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!
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- Obtain Your Free Credit Score: Safeguard Your Good Credit From Identity Thieves
- You Can Use Credit Cards To Improve Your Credit
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