A Way to Benefit from Store Credit Cards

Customers take different factors into consideration when choosing between different credit cards. Borrowers with excellent credit have more options, including rewards and specialty cards.

Balance transfer cards are designed for borrowers who wish to transfer high interest rate balances. Financial institutions offer competitive interest rates to attract new customers. This option is beneficial for borrowers with multiple accounts and busy work schedules. The main benefits of balance transfer cards are that they help save money, and it is easier for borrowers to repay their debt. The length of the promotional period and the interest rate are two factors to consider when making a decision. Late payments are to be avoided or your credit score will plunge even more. Given the low introductory APR, a balance transfer card is a tool to pay down your outstanding balances. Keep in mind that late payments incur penalty interest. Your credit and payment history are one factor that determines the interest rate. Competitive rates are usually offered to customers with a very good or excellent credit score. Those with fair or good credit are offered the regular rate. Check whether the issuer charges a balance transfer fee or annual fee. A secured card is a good alternative for borrowers with little exposure to credit.

While banks require a deposit, some cards feature low fees and other beneficial features. The deposit amount varies from one bank to another and ranges from few hundred dollars to $3,000 or higher. Secured cards require a deposit which is usually equal to the limit offered. Secured cards offer beneficial features, but it is important to check whether your issuer reports to all bureaus. If you default or miss a payment, your credit score will be affected. You will be eligible for other types of cards within a period of one year. Check the fine print for penalty interest and predatory fees. Recent immigrants are also eligible and are asked to present proof of assets, bank statements, and paycheck stubs. Regardless of your status, a secured credit card is not the best choice if you only pay the minimum. If you qualify for an unsecured card, weigh your options and pay more than the minimum.

There are other solutions depending on your income level and credit score – airmiles, 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. Gas and department store credit cards are also offered to borrowers with poor credit. A department store card is one option but make sure you pay your balance in full. A charge card is another product without a spending limit. With charge cards, customers are required to pay the balance in full.

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http://www.creditcardreview.ca/Walmart-Credit-Card–credit-card–125/

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