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How to Improve Your Credit Even After Being Denied It
We are living in the age of consumer credit and household debt. People living the United States are waking up to find themselves sinking in the mound of debt that they seem to have created. It is not far fetched these days to find people as much in debt as $20,000.
As the pressures of mounting consumer debt become an issue for more and more people, the demand for legitimate and proven ways to rebuild your credit history is on the rise. The word "budget" conjures up extreme images of depriving oneself of the foods one likes or more extreme visions of starving oneself pop up. However, a proven formula for debt management and the rebuilding personal credit and credit scores using a specific type of credit card dispels such visions.
These credit cards can be great, providing consumers an exit out of debt and out of hell, particularly if they have been unable to get a bank account or a regular credit card. In current times, it has become necessary for there to be two incomes in any household. Because of this, both men and women must work, leaving barely and time to spare for preparing budgets, or planning for the financial future.
They say a journey of a thousand miles starts with the first step. Let's take our first step and evaluate both secured and pre-paid credit cards and the pros and cons of each for your situation.
Secured Credit Cards Pros - Opening a secured credit card account is a simple and affordable way to start building your credit. Secured credit cards will also help you improve and rebuild damaged credit. These cards are used exactly like a standard run of the mill credit cards you are familiar with.
Disadvantages - A slight drawback from these types of cards is that in order to get one, you must put down a significant deposit, somewhere between $200 and $300 in order to secure them. The credit companies may also charge you yearly fees that make the card expensive. In addition, the interest rate on these cards tends to be higher than the norm. However, these cards can be your resolution to getting a better credit score.
Pre-Paid Credit Cards Pros - Pre-Paid Credit Cards can be a great tool because they provide you with the freedom and flexibility of using your own cash. These cards look like real credit cards and can be used for just about any situation that requires a credit card. Instead of granting you a credit limit based on your financial standing, these accounts require you to "load" the card with your own money. Yeah, real cash. Approval for this type of card is easy and almost guaranteed, even if you have credit problems.
Cons - If your desired outcome is improved, established credit, be careful. It is not always the case that these kinds of cards report your payment history to any of the credit bureaus. If they don't, then you are not doing anything to rebuild or establish good credit history. If you carefully select the card company and do your homework, however, these can still be a good option.
You should also take into consideration that pre-paid cards are not accepted in all circumstances. For instance, rental agencies for cars and hotels may not allow you to make payment using one of these or to secure the rental. To be safe, you should call in advance and verify the various payment methods that vendors like these accept.
About the Author Identity Theft Prevention & Identity Theft Protection are critical. Stop Identity Theft with LifeLock. Life Lock can guarantee identity theft never happens to you. To learn more about how to protect yourself from identity thieves, visit lifelock.com
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