by Linda Seamore
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.
People want a sure a proven way to improve their credit. This desire is certainly on the rise as people feel more and more pressure as they pile on more and more debt that they cannot afford. Going on a budget seems to be cruel and unusual punishment for many, as they often overlook the value of this system of financial planning. However, the use of a certain type of credit card may indeed help your credit and get rid of the idea that budgets are all bad.
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 - Obtaining a secured credit card account is a quick, easy, and affordable way to build your credit. These cards will also help to better your damaged credit by slowly rebuilding it. They are used the same way you use any other card and are taken by vendors anywhere a regular debit or credit card can be used.
Cons - One of the major drawbacks to this type of card is that to secure the card you must put down a $200 to $250 deposit with your application. For many this may be a tough requirement. These cards also tend to have much higher interest rates (15% or higher) and additional charges such as an annual fee (usually around $50). Despite these drawbacks, for many looking to rebuild their credit, these cards make sense.
Pre-Paid Credit Cards Pros - A pre-paid credit card can be a great way to provide you with the freedom and flexibility of having your own credit card, without having to be in debt. While these cards look and feel like every other credit card, and can be spent in all the same places, these cards require you to put money on the. In effect, you are spending your own money just like cash. The approval process for this type of card is easy and is a definite guarantee.
Cons - The problem with these kinds of cards is that they may or may not actually report your repayment history to the credit bureaus. If they do not do this, than you are not doing anything to help your credit. Therefore, buyer be ware about the ones that you choose, especially if your goal is to rebuild your credit. Select a card company with precaution and do your homework please!
Remember also that pre-paid cards may not necessarily be accepted in all situation especially for hotel or car rentals. They also may not allow you to secure the reservation with on of these cards. To be on the safe side, always call ahead of time to verify that a particular vendor accepts the kind of card with which you wish to pay.
About the Author:
Identity Theft Prevention & Identity Theft Protection are imperative. Stop Identity Theft with LifeLock. Life Lock can guarantee identity theft never happens to you. To learn more about how to protect yourself from identity thieves, visit lifelock.com
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.
People want a sure a proven way to improve their credit. This desire is certainly on the rise as people feel more and more pressure as they pile on more and more debt that they cannot afford. Going on a budget seems to be cruel and unusual punishment for many, as they often overlook the value of this system of financial planning. However, the use of a certain type of credit card may indeed help your credit and get rid of the idea that budgets are all bad.
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 - Obtaining a secured credit card account is a quick, easy, and affordable way to build your credit. These cards will also help to better your damaged credit by slowly rebuilding it. They are used the same way you use any other card and are taken by vendors anywhere a regular debit or credit card can be used.
Cons - One of the major drawbacks to this type of card is that to secure the card you must put down a $200 to $250 deposit with your application. For many this may be a tough requirement. These cards also tend to have much higher interest rates (15% or higher) and additional charges such as an annual fee (usually around $50). Despite these drawbacks, for many looking to rebuild their credit, these cards make sense.
Pre-Paid Credit Cards Pros - A pre-paid credit card can be a great way to provide you with the freedom and flexibility of having your own credit card, without having to be in debt. While these cards look and feel like every other credit card, and can be spent in all the same places, these cards require you to put money on the. In effect, you are spending your own money just like cash. The approval process for this type of card is easy and is a definite guarantee.
Cons - The problem with these kinds of cards is that they may or may not actually report your repayment history to the credit bureaus. If they do not do this, than you are not doing anything to help your credit. Therefore, buyer be ware about the ones that you choose, especially if your goal is to rebuild your credit. Select a card company with precaution and do your homework please!
Remember also that pre-paid cards may not necessarily be accepted in all situation especially for hotel or car rentals. They also may not allow you to secure the reservation with on of these cards. To be on the safe side, always call ahead of time to verify that a particular vendor accepts the kind of card with which you wish to pay.
About the Author:
Identity Theft Prevention & Identity Theft Protection are imperative. Stop Identity Theft with LifeLock. Life Lock can guarantee identity theft never happens to you. To learn more about how to protect yourself from identity thieves, visit lifelock.com
1 comment:
Bad credit can spell a doom when you apply for a loan/mortgage or want to get a credit card. After the economic crisis, most of the lenders and creditors have become extremely skeptical in giving loans to people with bad credit. Thus, it will be very beneficial for you if you take steps to improve your credit scores and then look out for loans. If you take steps to repair your credit, it will have a positive impact on your scores and it will become easier for you to get a mortgage. Rebuilding credit on your own can take some time but it will be a fruitful effort in the long run.
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