Credit cards offer unlimited benefits to its users. If you have no credit history yet, then you must think to apply for your first credit card. You can start by choosing the option of a credit card for bad credit. To help you pick the right card as a beginner, there are some factors you need to consider.
Here they are: Credit Card Type: There are countless credit card options available in the market. You make sure to pick the card that suits both your needs and lifestyle. Joining or Annual Fee: Not all credit cards come with joining fee. If the card you are buying has some fee, then you make sure it is included with some reward options. Credit Limit: The credit limit is the maximum amount set by the bank based on the credit score. If you are a person who always pays back on-time, then you can ask the bank to increase your credit limit. Cash Advance Limit: It is an option that allows cardholders to pay cash during emergencies. You should check for the cash advance limit that is decided by the bank and always pay lower than it. Cardholders can go for a credit card for no credit option if they have limited or no credit. Only after a careful evaluation of different credit cards, you need to pick the suitable option for you. Related Posts: How Bad is Your Bad Credit To Get a New Credit Card Credit Cards For Bad Credit Can Really Be Good For You! Learn the Difference between No Credit and Bad Credit Credit Cards For Bad Credit - How It Can Affect Your Life Cover Top 5 Credit Cards for Bad Credit for 2020 Top 6 Credit Cards for Bad Credit The Anatomy of Bad Credit Score 8 Best Credit Cards for Bad Credit
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Bad usage of credit cards even the low interest credit cards can put you in debt, and the late payments will make you pay more interest. So, it depends majorly on how you use the credit card to save money and earn money through it. We are sharing some of the smart ways of using the credit cards through which you can save and earn money with both low interest credit cards and even with credit cards for no or low credit score.
- If your card has 0% APR, then use it for big purchases. Many credit cards come with 0% introductory APR. Use that while purchasing a big-ticket item such as furniture, a vacation, or a medical procedure. It will allow you to break up the purchase in multiple payments without interest. - If your credit card offers good rewards in points and miles, you can turn that into cash by getting gift cards using those reward points. For example, you spend $10 in cash rewards for a $15 gift card. - To save money, you can convert your travel rewards points on credit cards with low interest for a free hotel stay or a free flight. You can utilize the free travel for vacation or holiday travel - Many eCommerce platforms offer sale days where you can shop using your credit cards. Leverage those days and shop using credit cards to save more money and earn more points. - Do not carry a balance. All your benefits can be overshadowed if you keep a balance on your credit card as you have pay heavy interest later for later payments. So, avoid the debt, pay on time and avoid paying more interest. If you end up keeping balance on your credit card then transfer the balance from other cards to a low interest credit cards to save more money. Implement these changes in your buying and spending habits to save and earn more with your credit cards with low interest. If you are looking for credit cards with low interest rate, you might be thinking about getting a store credit card. These credit cards do have a lower approval requirement when you compare them with other credit cards that are issued from big banks / financial institutions. This also means that getting a store credit card is easier as compared to other financial instruments even when you do not have any credit history established. If you have compared these with other options, you may be able to benefit a little more from store credit cards but only as a starting point. When you are in the initial stages of building credit, store credit cards do come across as a better option. Regardless of whether you choose a regular credit card or any credit cards with low interest or no fee at all, the bank is going to perform a hard enquiry on your credit scores. This might have a slight negative effect on your credit history. Therefore, it is always better to establish a reliable credit score so that you can go for a regular credit card later in the future.
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