Posts Tagged ‘credit score’

While at their inception, credit cards have been regarded as dangerous debt-generators, the truth is that nowadays, they are actually immensely helpful and virtually indispensable financial tools. Credit cards confer a wide array of benefits depending on the issuer and the category, ranging from identity protection to cash rewards and from travel miles to insurance. This makes the selection process rather difficult, unless you are in the position where you have to opt for a credit card with low interest rates due to overwhelming debts and financial instability. Let’s learn more about the quest for an ideal credit card.

Your credit score and you

The first step implies learning your exact credit score by obtaining the free yearly report from the authorities because you want to have at least the basic idea regarding the perception of credit card issuers and other lenders towards you. The credit score and the credit history are utilized in determining your liability level and a low one may deem you ineligible for certain credit cards, which eliminates some of the options from the search.

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Instant approval credit cards seem like a great option for many people, especially those who have good credit ratings and need access to quick cash. If you are in need of a credit card quickly, because the card is instantly approved, there is also very little paperwork to fill in, and therefore you usually receive the credit card much more quickly that you would receive one that hadn’t been instantly approved.

In order to be instantly approved for a credit card, you should ensure that you have a good credit rating. Credit card companies do not trust borrowers who have poor or no credit rating, as this signals to them that the borrower may not pay off the debt and end up losing the credit card company money. If you have a good credit rating, the credit card company will be able to trust that you will be able to make your payments on time so they will be more likely to instantly approve you.

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A secured credit card works by the customer topping up their account with a cash sum, and then the credit limit of that account is the amount that the customer has paid in. This is almost the opposite of a normal credit card, where the customer pays with their credit card for transaction, and then pays off the balance on the card after they have used the credit on the card. With secured credit cards, the customer pays for the credit before they begin to make transactions.

By having a secured credit card, the balance on the card is already paid up front before you begin to make transactions. Rather than having to worry about whether you will be able to afford the repayment each month, you have already paid off the money on the card, so this will not be an issue. As you will effectively be making all of the payments before using the card, you will always meet your repayments for each month. This means that you will be able to build your credit rating up quickly. If you have had bad credit rating in the past, your credit score will be able to be improved upon substantially which will make you a trustworthier customer for other credit lenders. With an improved credit rating, you can get loans and mortgages much more easily than you could do if you have a bad credit rating.

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