Whatever your income, you will need to build credit over the years so that you have a good rating when you need it. Start now and reap the rewards for the rest of your life.
Improve your Credit Ratings in your Early Age
Some time in the future, you may have to take credit from the market in case you encounter a financial emergency. Even if you feel that you are earning enough, your earnings may not be sustainable in the future to supplement your growing needs. Say, for example, building a dream home in your 40’s. Thus, you must have a healthy credit rating and the build credit credit cards may just be the answer to your needs.
These special types of credit cards are equally useful for people who have absolutely no credit history, as well as those who have a not so good or a rather bad one. These build credit credit cards are a tool to improve credit ratings or build your credit image in the eyes of the lenders. You may be surprised to know that getting a credit from the market without any credit history is almost impossible.
This is because the lenders have absolutely no way to assess your capability to repay their loans. The lenders review an application on the basis of the credit score a person has on the National Credit Rating List. Based on the health of the rating, the application of an individual is evaluated and his credit limit is fixed. So if you have not taken any loan in your past, these build credit credit cards are the tools that you should sought for.
All you need to do is to apply for a small loan from any lender. This loan can be anything from a loan on a domestic appliance or any micro finance. You can easily avail these if you have a savings account.
After applying, it kick starts your credit history and then you can easily apply for these credit cards. Before applying, make sure that your savings account balance is healthy. Apply for credit cards from not more than three sources, because that hurts your credit score to a considerable extent.
It is advisable to go through the various offers by the lenders and chose the credit card which has a suitable credit limit and lowest interest rates. It may happen that such build credit credit cards may be offered to you on zero interest rates. But it is almost impossible, especially when you are rebuilding your credit score or starting out fresh.
Go through the pre-qualifying rounds of the service provider and see whether you are eligible or not. If only you are eligible, then apply for the loan unless you want your application to be rejected.
Here are certain tips that you must keep in mind before applying:
1. Always chose a card with the lowest interest rates.
2. Make a Savings account and keep its balance healthy.
3. Chose a card with a higher credit limit and always keep the credit account balance low.