Choosing a Credit Card: Look for These Important Features
Obtaining credit can be just as challenging as keeping a FICO score in an acceptable range. For cardholders, whether they are just establishing credit or rebuilding due to some setbacks, there are plenty of card options that can put more money back in their pockets and also reward them for spending.
The Beneficial Grace Period
Look for credit cards that have an extended grace period. Cards like HSBC Gold also offer one late payment annually. Using this option along with the grace period helps with the occasional late payment and won’t be reported to the credit bureaus. A grace period is beneficial if an unforeseen emergency arises or times when the cardholder simply forgot to pay.
Builds Your Credit Score Quickly
Some cards, especially secured cards for individuals with troubled credit, pummel cardholders with so many fees it can take a while to pay balances down. This affects credit utilization ratios and can wreak havoc on FICO or Vantage scores. Spending provides the convenience that all cards offer, but a good card like Discover it, that has minimal fees and low interest makes sure cardholders are paying more toward the overall balance as opposed to fees.
Secured Card for Rocky Credit
For those with a low FICO score, no bank account and a rocky income, the Open Sky Visa can help lay the foundation for rebuilding credit. There is a $35 annual fee, but the card opens doors for individuals who need a card for shopping and securing other credit interests.
Cash Back for Purchases
A card that pays cardholders to shop is like a win-win! The Chase Freedom card gives cardholders bonus rewards and cash back just for using their card. With a 0% APR and ongoing low variable rates thereafter, cardholders can spend freely and be able to pay balances off affordably.
Low Transfer Balance
One way to build personal credit is to get rid of high-interest credit cards that are maxed out to the limit. This can be challenging to resolve because it can take so long to pay off balances when the interest is high.
One solution is to transfer high balances to a low-interest card like the BankAmericard from Bank of America, It doesn’t have an initial balance transfer fee and offers a reasonable 0% introductory APR. It boosts credit because old cards show a zero balance, therefore boosting the debt-to-income ratio.
A credit card doesn’t haven’t to be a financial hindrance. It can be beneficial to one’s lifestyle, improve lending power and establish a more solid financial future.
~Here’s to Your Financial Health!
