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Know your Credit Score before getting a Credit Card

Know your Credit Score before getting a Credit Card

Credit cards are hard to deny and there are really little chances of limiting their usage if you are not careful. Know all about them for a better usage and effectiveness.

The credit card is a very good thing introduced by banks which provide credit at the time when you are out of cash. You can use your credit card to pay your bills and buy things if you are out of cash and later you can pay them when you get some money.

Well this is the basic purpose of the credit cards when you look from the perspective of the cardholders who are sensible and financially aware of the implications of the excessive use of the cards. But is if you look from the perspective of the credit card companies, they are in the business for the profit which can be earned only by prompting customers to make maximum usage of the credit card limit offered to them. Companies trick customers by means of offers and the discounts on the purchases they make. They leave very little scope for the customers to keep them from not using their cards.

Gone are the days when the credit card companies would offer credit cards to just anyone. Post recession and the losses suffered by the companies, they are now making informed decisions based on proper documentation and authentication and verification of the same, before offering any credit card to anyone in the company.

The credit score is one of the major deciding factors when it comes to credit card approvals. In fact the credit limits offered on the cards are dependent on the credit scores. Higher the credit score better the credit limit and vice versa. So if you are looking for a credit card, then it is always advisable to look into your credit score and then go apply for it. If you think that your credit card is way below the expected levels by the credit card company it is always better to postpone the decision of applying for it and work on the improvement of the same first.

It may be rightly said in the present economic scenario that the credit card is given to only those people who have a good credit score. But there are even card available for people who have bad credit score. There are even secured credit card which is given to people which may help to rebuild your credit score. Here are some credit cards provided to people who are holding less credit score.

Fix Your Credit with Secured Credit Cards

credit-card-offers

You can rebuild your credit score by taking secured credit cards. In secured credit card you have to deposit a minimum balance. And then you will be provided with a credit card and your activities will be given to credit reporting agencies.

Orchard Bank

There are many offers introduced by orchard bank which are secure and unsecured credit cards. In secure credit card, minimum $200 has to be deposited by customers. And the APR rate of these secure credit cards is as low as 7.99%.

First Premier Bank

A first premier bank is the second best choice for people who have a low credit score with them. $95 is charged as processing fees on these credit cards which give $300 as a credit limit on your credit card. The only drawback of these first premier banks is that they charge high APR rates of 36%.

Capital One

Capital one is also a credit card company which deals with secured credit cards which have many options for people to choose in which they are comfortable. In capital one credit card the APR rate is 22.9% and requires a minimum deposit of $49, $99 or $200 depending upon your credit score. These credit card companies fund your credit card by your own money which helps to improve your credit score.

Digital Federal Credit Union

The digital federal credit union credit card offers for poor credit score people at 11.5% APR rate. The minimum deposit required by the customer is $500. These also work in the same way as others do and the deposit done here is the line of credit of the customer.

Citi

Citi has proved to be the best credit card company by his attractive and low offers. It charges least annual fees as compared to others which are $29. On Citi card a person has to make a minimum deposit of $200, but the difference of these deposits from other companies deposit is that they pay you interest on your deposit which is similar to a CD. If you remain a good customer then after 18 months Citi will upgrade your credit card to a traditional credit card. The only drawbacks of these cards are that they charge a bit high APR rate which is 18-24% on purchases and 25.24% on cash advances.

Recommended Reading : How does Credit Card Debt Settlement works and how it helps

Chase Sapphire Preferred Card

These are the credit card which gives you points and you can redeem your points to get discounts. They offer you 40000 points initially if you spend $3000 in first three months. These bonus points get give you reduction of $500 which can be used in air fares or in hotel accommodation. In these credit cards no transaction and annual fees are charged in the first year. Once first year is completed then you are charged with $95.

Capital One Venture Rewards Visa

These are the credit card companies which offer you two reward points on the purchase of single dollar and these points can get redeemed anywhere you want unlike others that have to get spend in a specific place. Initially if you spend $100 then you can easily avail bonus points equal to $100 which you can use freely anywhere you like, whether shopping or booking flight. Cardholders enjoy the benefit of no annual fees for the first year which is equal to $59.

Blue Cash Preferred American Express

Blue clash express gives you fen ominous rewards which you can avail anywhere you want. For example, you’ll get 3% for gas purchases and department purchases, 6% cash back in grocery stores, 1% in other purchases. They charge high annual fees of $75.

Discover Open Road

These are the credit cards which are specially introduced for drivers, you can avail 2% cash back at gas stations if you purchase around $250 in the restaurant. There is no annual fees charged on this credit card and you can gain 20% cash back if you purchase things through Website of Credit Card Company.

Escape by Discover

In these credit cards you can avail high bonus points for 25 months. These bonus points can turn into $100 per month after redemption and can be availed anywhere you want. The annual fees of these credit cards are $60.

Pen Fed Platinum Rewards

These credit cards are given to those people who are qualified for pentagon federal credit union. In these credit cards there is no annual fees charged. You get five points as a reward if you spent one dollar on gas. Three points are awarded if you spent in supermarkets. Maximum bonus points are availed in these credit cards as compare to other ones. It is one of the best credit card which a person should take.

Stay away from Credit Card Loans

Get the credit cards of your choice and the one that suits you the best. But remember that any of these credit cards would attract a heavy interest rate on any loan taken from them and not paid within the grace period offered to you.

About Subodh Tandon

Subodh is a full time marketing consultant and a skilled blogger. His area of interest belongs to marketing and finance related news and love to share all of those topics over the internet. You can catch him directly through this blog.