Your new credit card just arrived! Congratulations, you are now part of the 72 percent of consumers to has had at least one credit card. By now you should know the basics. But if you still have some apprehensions and you feel like you lack the knowledge on how it works, we can help you.
With a credit card, you can purchase almost everything we want. Imagine the many possibilities!
A credit card is an excellent tool to extend their purchasing power. It is a great way to buy goods and services. Moreover, with a credit card, you can build your credit.
What’s the Perfect Credit Card?
No one credit card is perfect for everyone. It will be up to you, your spending habits and your lifestyle.
Basically, there two main credit card categories. You have the secured credit card and the unsecured credit card.
Secured Credit Card
With the secured type, the cardholder will be asked to put a cash deposit. This gives lenders more security by acting as a cushion ensuring the payment of credit balances.
Unsecured Credit Card
Unlike secured credit cards, there is no cash deposit to act as a collateral. The lender will have to rely on the cardholder and trust that he/she will make consistent payments toward the monthly payables.
For people whose credit is not as stellar, it might not be easy to get a prime card. These individuals’ credit ratings may inhibit them take mainstream credit cards. A nonprime credit card is an easier option for them to enjoy the same kind convenience which they could not get with a conventional credit card.
In the same way as a prime credit card, a nonprime one will help repair a person’s credit. It is a matter of choosing the right one.
Always Read the Fine Prints
Owning a credit card is a big financial move. Make sure that before you apply for one, you understand the details of the card you choose.
Make sure you have a good grasp on its terms and conditions.
The great thing about credit cards now is that you no longer have to squinch your eyes going through all the fine prints. The federal law mandates that credit card providers detail interest rate and fees clearly.
This will help credit card owners understand the terms more. The agreement document must reflect clearly how the interest rate is charged. In addition, you have to know what other fees you will apply.
A nonprime credit card will help you repair your credit
It is possible as long as the cardholder uses it responsibly. Referred to as “second chance” credit, it can help improve your credit score as long as you keep your spending and payments well managed.
When you have better credit standing, you will be able to have better offers in financing, such as for housing. A better credit score and an improved credit history will show lenders that you are responsible enough in handling your debts.
Take a credit card as both an asset and a liability. You have to understand that you need self-control to keep your spending on track, especially that credit cards allow you to purchase just about anything you want.
If you are looking for a nonprime credit card, speak to a provider first. Gather first-hand information about it before getting one.