Before You Compare Credit Card Offers
Are you thinking of applying for a new credit card? If so, you may want to begin asking yourself what your personal financial goal is. After you’ve recognized your own needs, you can then pick the category of card you desire and begin your journey to compare credit card offers.
For a student who is applying for a first credit card there are a number of credit cards available that include a variety of features. The benefits of each card vary and can include 0% APR introductory, no annual fee, and rewards offered such as cash back, selected merchandise and entertainment
Quite often a student credit card has a lower credit limit which is actually a plus. It introduces the student to the world of credit, while limiting the chance of running up too large of a bill. An added bonus of a student credit card is it helps to build that needed credit rating which is important in today’s world. Of course, the student needs to maintain the credit card account in accordance to the issuing company’ terms and conditions.
There are available airline credit cards. But if you wish to travel on more than one airline, perhaps a rewards credit card that offers bonus travel points would be more suitable. The benefit to a reward card would be that the owner has a choice of how to spend those bonus points. In addition to air miles, the added choices include cash back, selected merchandise, entertainment and gift certificates.
If you already have a number of credit cards that you’re paying the minimum balance and they charge an interest rate of more than 0% APR, you might consider a balance transfer credit card. With an introductory 0% APR, you could have anywhere from six to eighteen months to pay down your debt interest free.
Even if you already have bad credit there are still credit card opportunities for you to apply and even receive instant approval. A credit card for people with bad credit, has a higher interest rate than cards for more stellar credit. However you can avoid these higher fees if you pay your balance billed each month. After you’ve been able to rebuild your credit, you can then talk to the issuer and get a lower interest rate or reapply for a lower interest credit card.
Two additional cards are available for people with bad credit or for people who don’t really want to owe on a credit card, but need a card for the convenience of ordering merchandise by telephone or on the internet. These are prepaid credit cards and debit cards.
These two types of cards can be obtained by completing an easy application and making a specified deposit. They work just like a regular credit card and are also accepted at any ATM machine, giving you total access to your available funds.
Building Credit After Bankruptcy: Three Strategies
Here are three "Building Credit After Bankruptcy" strategies you can use to increase your chances of being approved for auto loans, credit cards, and home loans if you have a bankruptcy on your credit report:
Building Credit After Bankruptcy Strategy #1
Apply for credit where you have a high probability of getting approved, and make the payments on time. Sounds simple, but most people go about applying for credit the WRONG way and make it more difficult than it needs to be.
By the way, don’t go overboard when applying for credit. The whole purpose of getting a credit card or loan is to rebuild your credit history after bankruptcy - not to get in to debt up to your ears!
Be careful about the inquiries. When it comes to some types of inquiries, too many can hurt your credit score. Other types don’t matter.
Building Credit After Bankruptcy Strategy #2
Another way to rebuild your credit after bankruptcy (one my favorite) is to add years of positive credit history to account. You can literally add a number of new positive items to credit your report. It’s 100% legal but the technique is not widely known. When it comes to building credit after bankruptcy, this is a strategy you will want to consider. I don't have enough room to go into detail on it here, so I'll save it for another article.
Building Credit After Bankruptcy Strategy #3
Of course, cleaning up inaccurate and obsolete negative information on your credit reports is critical when building credit after a bankruptcy. And you don’t need to use a credit repair company to do it. You can do it yourself and save a few hundred dollars. Just remember that you need to know exactly what to do.
For example, there are three ways to dispute information on your credit report. If you want to correct errors on your report FAST then there’s a certain way you need to request your reports.
Here’s another example: There may be some collection accounts or charge offs on your credit report that don't belong there. You need to know what to look for to determine if that's the case or not - and how to dispute such an item if it is. Most people would look at these items and not even realize they don’t belong there.
Remember: When it comes to building credit after bankruptcy you don't want any inaccurate or obsolete information on your credit report!
I can keep going but I think you get the idea. There are a number of pieces you need to pull together when you are rebuilding your credit after bankruptcy. But it’s worth it. After all, if you can increase your credit score, and building credit after bankruptcy plays a key role, then you could literally save up to hundreds or even thousands of dollars in extra interest and other finance charges when it comes to future loans and lines of credit.
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