Monitor Your Spending in Order to Rebuild Your Credit History

Banks, credit unions, online banks, and other financial institutions offer different types of credit cards to business owners and individual customers. There are prepaid, department store, no annual fee, and other products.

As a rule, customers with excellent and very good credit have plenty of choice because they are considered low risk by financial institutions. The choice of card depends on whether you pay the balance in full or make minimum payments. Rewards cards, for example, are usually reserved for creditworthy customers with a high income level and offer greater flexibility and perks such as rewards schemes, introductory bonuses, discounts, and many others. Cashback credit cards offer cash back for purchases made at department stores, gas stations, supermarkets, and participating merchants. While specialty cards offer plenty of perks and incentives, they usually come with a higher interest rate. Airmiles and rewards cards are good choices for borrowers who pay their balance in full. Holders are offered access to airport lounge programs and priority access to international and domestic lounges all over the world. In addition to these perks, airmiles cards offer added benefits such as statement credits to be used for snacks, flight-change fees, checked bags fees, and other expenses. Other benefits include no pre-set spending limits and stolen and lost card reporting.

In general, customers with steady income and solid payment history have many options, from auto and gas credit cards to low interest, balance transfer, and other cards.

Customers with poor credit have several options depending on their credit score and income. Given that they are considered high risk, borrowers with bad credit often turn to non-bank entities. The interest rate usually varies between 30 and 40 percent. One alternative is to apply for HBC credit cards 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. It is important to monitor your spending in order to build or rebuild your credit history. Regular payments over a certain period of time help improve your credit profile. 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. Issuers offer student cards with incentives such as discounts on school-related items and promotions on clothing and textbooks.