unsecured credit cards to rebuild credit
Unsecured Credit Cards to Rebuild Credit
Facing bad credit problems? Want to rebuild it? Then go in for the unsecured credit cards to rebuild credit. These cards are an excellent way to rebuild your credit ratings.
- The mechanism of credit cards is very simple. When a user uses the card to make purchases, the credit card company bears the expenditure of the transaction.
- The company makes an itemized bill at the end of the month and charges a service charge for all the transactions. The extent to which credit card users can make transactions within a specific month is known as the credit limit of that card.
- This process stays the same throughout, and credit card users have to pay the bill every month, before a certain time limit. The credit score drops down, if the user does not respect payment deadlines. Often credit card companies also terminate their services if bills aren't paid.
- Usually unsecured cards are hard to come by and people with an assured income, good employment records, or sound educational backgrounds are given this service. Most people who use these cards in order to rebuild credit, are employed and have sound educational backgrounds.
- In some cases, unsecured credit cards are also prepaid. This is usually observed when the applicant of the credit card does not have a reliable source of income.
- Also, these credit cards have some specific terms and mechanisms that help the users to improve credit ratings. For example, the deduction at source facility is often used by companies so that the bill is paid perfectly on time, that is immediately after the user receives his or her monthly salary. In some cases, restrictions on per swipe expenditure are also used. It means that the user cannot exceed a particular limit for one transaction.
- Upon any timely payment of the bill, the credit card company, directly and regularly reports the payment and its details to a credit rating agency. As a result, the credit ratings or scores of the credit card users shoot up.
- Merely getting such a card will not simply improve your credit ratings and scores.
- Late payment or no payment at all will lead to bad trouble as your ratings will immediately drop down.
- First and foremost check the credit rating agency to which the credit card company/service reports. Basically, the more the better.
- As a precaution, check the implications for late payments.
- Then check the monthly APR (Annual Percentage Rate) that is charged by the company.
- Last but not the least, plan your expenses which you will fulfill through the credit card. It is advisable to spend a fixed and monthly amount with the help of this card. These can include, groceries, medicines, gas, etc.
- Orchard Bank Classic MasterCard
- Credit One Bank Platinum Visa
- First PREMIER Bank MasterCard Credit Card
- Centennial Classic Credit Card
- First PREMIER Bank Classic Credit Card