Do You Know Which Credit Card is Best for You?
Trying to rebuild your credit history is about as fun as getting your teeth pulled at the dentist. There is anxiety laced with panic, sometimes numbed with sedation methods (anesthesia at the dentist; Vodka Sevens for your credit woes).
But however painful, rebuilding your credit, like visiting the dentist, is necessary. And one of the best ways to do it is through a new credit card. But where does one even start?
Since there are a variety of options out there for you, and it can be hard to choose even on a good day, we’ve broken down which types are best for your credit.
Secured
Secured cards can be easier to obtain than your standard credit card. This is because there’s notably less risk involved to the institution who issued you the card in the first place. For instance, every purchase you make will be paid for using an initial deposit that you put down. Think of it as a trust-fall. Your lenders are trying to figure out if they can trust you to pay back your revolving loan. If, for whatever reason, you aren’t able to return the payment, they will keep the deposit.
Low Interest
Another option is to sign up for a low interest credit card, which is usually offered through major banks, unions, and financial companies. Users can save on interest charges, and some even offer rewards such as gas, cash back, maybe even money towards going to the movies (yay popcorn!). A point to keep in mind is that while the limit tends to be lower, it can increase over time once users make on-time, consistent payments every month.
Guaranteed
Guaranteed approval cards, offered by major credit card companies such as MasterCard and Visa, are given to those with lower credit scores. These are offered to those who need to improve their credit, and can feature benefits such as price protection, travel assistance, baggage delay coverage, and more. This type of card could be a good alternative to standard issue credit cards, which often require a more stringent credit check.
Prepaid
Prepaid cards are a good option for users who have a history of consumer proposals, foreclosure, bankruptcy, and very troubled past credit accounts. While it may not help much with rebuilding credit, there are a variety of reloading methods (in-person, online, direct deposit) and could offer other benefits such as online bill paying, balance alerts, free ATM withdrawals, business and payroll programs, and referral bonuses. The zero activation or application fee may also be an appealing factor.
Department Store
Department store credit cards usually offer benefits related to the store, such as sales, promotions, discounts, and coupons. The zero introductory rate (for a certain period) could make it an attractive option for those who don’t have much of a credit history, or are in need of a credit boost.
Rebuilding your credit with a credit card is a good first step to help you get back on the path to financial success. At BC Drive, we work with every credit score; we want you to drive away with the car you deserve. Apply today to see what you can drive away with.