Credit Card for Your Shopping Needs

by admin on February 16, 2014

Secured cards require a deposit which is usually equal to the limit offered. Financial institutions require a deposit, but secured cards are sometimes the only option available to debt-ridden borrowers. Borrowers usually apply for a secured credit card after a serious event such as illness, complicated divorce, or loss of job. There are many advantages depending on the issuer, and one is that financial institutions usually report to the credit bureaus. If you default or miss a payment, your credit score will be affected.

walletYou will be eligible for other types of cards within a period of one year. While there are certain downsides such as high interest charges, secured cards are an option for borrowers with medical bills, foreclosures, etc. The higher risk of default explains why many issuers offer higher interest rates to borrowers with poor credit. Whatever your case and financial situation, make sure you pay the balance in full. As a rule, this is an option for borrowers who can’t get approved for a standard card. Financial institutions offer a wide array of HBC credit card to customers from different walks of life. Borrowers with excellent credit have more options, including rewards and specialty cards.

Using a balance transfer card is one way to lower your payments and interest rate. Some cards come with a zero introductory interest rate and other features. This option is beneficial for borrowers with multiple accounts and busy work schedules. Usually, balance transfer cards are offered to new card members. The length of the promotional period and the interest rate are two factors to consider when making a decision. In any case, timely payments help improve your credit score. Given the low introductory APR, a balance transfer card is a tool to pay down your outstanding balances. Your bank will increase the interest rate if you are late on your payments. While banks offer promotional interest rates, this is the lowest rate you can get. A balance transfer card helps borrowers with excellent credit to lower the interest rate. You may not qualify if you have poor credit. While the interest rate is low, some issuers charge high annual fees. There are other options for borrowers with tarnished credit, and one is to apply for a secured card.

There are other solutions depending on your income level and credit score – cashback, no annual fee, and other types of cards. Many issuers offer balance transfer cards with perks such as cash back on movies, restaurants, gas, and other purchases. If you have tarnished credit, other options to consider include department store credit cards and prepaid credit cards. The main drawback is the high interest rate while payments are not reported to the credit bureaus. Charge cards also allow holders to make purchases on credit. With charge cards, customers are required to pay the balance in full.

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