Properly used, any credit card will improve your credit rating. But, if you have had financial troubles in the past, then you will want to build your credit with secured cards.
What types of credit cards help built credit?
As you use these cards and make the payments in timely manner, you will have a good credit history against your name and you will be given a credit score also that is indicative of your financial health. Credit cards help build credit but you should pick up a credit card carefully.
Before you know about credit cards help build credit, you must know the importance of timely paying back the dues to the credit card company. Paying off the dues on before the scheduled date will mean that you are financially sound and your credit score will be excellent. Another thing to note for credit cards help build credit is that if you make a delayed payment, your credit history will have negative points and it will be marked as bad credit history.
If you have little or no credit history then you will not be approved for the credit cards that require a good credit history. This means that you should find out a card for high-risk consumers like you, who do not have credit history. Moreover, such a card issuer company must be reporting to the major credit bureaus so that you can build credit. Another thing to note is that such a card must be of low fees and the interest rate should be reasonable.
Here are the main types of credit cards help build credit for you.
• Secured credit cards. Everyone is welcome to obtain secured credit cards. You can have these cards without having any credit history. You will deposit cash as collateral and you will be approved for the credit card. This deposit will be credit limit for you. To build a good credit record, make small purchasing and pay off in full every month.
• Gas or store credit cards. These credit cards help build credit easily. However, you can use these cards at select merchants.
• Bad credit unsecured cards. You can own this type of card without depositing cash, but interest rate will be higher. You also need to make upfront fees.
These are the cards that can surely help you in building credit for your sound financial future.
Advice for keeping a good credit record
1. Spend very rarely and in small amount so that you can easily repay to the company before due date.
2. Use cash whenever possible to buy things
3. Pay back the credit card dues on time even if you have to borrow some money from friends.