How to Build or Rebuild Credit

by John_S on April 27, 2014

There is a wide array of credit cards available, depending on factors such as employment, level of indebtedness, and others. Clients can choose from rewards, airmiles, no annual fee, student, and other types of cards. Customers with very good credit who are frequent shoppers or travelers can choose from a selection of credit cards. There are different options to choose from depending on your lifestyle and payment habits. One option to consider is a rewards credit card that allows holders to redeem points for brand-name merchandise, airfare, and more. Cashback credit cards offer cash back for purchases made at department stores, gas stations, supermarkets, and participating merchants. Credit card companies offer rewards and incentives to encourage use and attract more customers. Specialty cards award customers for making purchases at participating retailers, coffee shops, restaurants, and other establishments. Issuers offer benefits such as complimentary bonus points that can be redeemed for CDs, holidays, and days out. Rewards and cashback credit cards offer plenty of benefits, but some issuers assess fees and charges. Credit card companies also look at spending patterns to determine which schemes and programs will be most effective and lucrative.

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Borrowers with good credit have access to rewards programs, cheap flights, in-flight refreshments, and more.Borrowers with compromised credit usually have a history of bankruptcies, delinquencies, foreclosure, late and missed payments, and maxed out credit cards. Borrowers with poor credit are considered risky customers, and their pool of options is more limited The interest rate usually varies between 30 and 40 percent. One alternative is to apply for a department store credit card that allows borrowers to save money on big-ticket purchases. A department store credit card is a good option for borrowers who pay the balance in full because of the higher rate of interest. Cards also offer discounts on insurance policies, car rentals, travel, and more.

Regardless of the card of choice, making regular payments helps holders to build credit, and their chances of getting approved for a standard credit card increase. Then there is the option to apply for a student card that comes with discounts on school-related purchases and other perks and allows students to build their credit history. Students enjoy benefits such as attractive interest rates, no annual fee, discounts, and others.

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