Want to own your own home, or a flash new car? You will need credit to secure these items. Start working towards building your credit as soon as possible to avoid a bad score later.
Follow these guidelines on cards build credit
You will get the loan only if the lender knows about your past record of paying off bills, loans and debts. If you have no credit record so far, know that credit cards build credit and you can have them easily.
When thinking of credit cards, many people become nervous as they assume that interest charges will be very expensive and they may fall in debts. You should not worry since you are using the credit card only for building a credit history and not for regular buying. All you need to ensure is that you pay off your balance completely each month. This will help you also in improving your credit score if you have a bad credit history.
When you have very little or no credit history, it simply means that, you are a high-risk consumer for the card issuer company. Therefore, you should be prepared to have credit cards with reduced credit limits, high annual fees and high interest rates. Make sure that you choose a credit card company that reports your payments to the credit bureaus so that your cards build credit.
A secured credit card is the easiest to get for the people having no or bad credit history. This is because the lenders have no risks as you have to offer a cash deposit to the lender. The deposit amount will determine your cash limit. However, do not worry about the cash limit, as your primary aim is that cards build credit for you. Then, you can also use gas credit cards or store credit cards as a tool for building your credit history. Although interest rate is high and credit limits low, but you can easily qualify for these cards.
If you have a bad credit history and you want to improve it, then bad credit unsecured cards can be useful. One of the advantages when you look for cards build credit is that you will not deposit anything. However, be prepared for high upfront fees and high interest rates. You should subscribe to the cards only reading the fine prints as there may be some hidden conditions. Hope, these tips are useful in building your credit history for your safe financial future.
Advice for good credit history
1. Pay off all your dues and bills without any delay
2. Do not borrow money from the lenders very often
3. Save money for emergency and payment of the loan installments.