So, maybe you havent had the best credit cards to build your credit. Maybe, youve gone on a wild spending spree in your younger years. Now, youre probably writhing in pain every time you receive a notice from a collection agency. Whatever your situation is, the end result boils down to one phrase: bad credit. You may not even know how youve gotten to that point, however, there are options available to consumers. Bad credit doesnt have to be something that has to be lived with. Heres how to choose the best credit cards to build credit.
To Choose the Best Credit Cards, Start at Square One
Were going to be quite frank here. When it comes to bad credit, there is no room to be picky. Several of the credit cards available to those whove obtained less than desirable credit, involve fees or deposits. However, dont be discouraged, there are several of them that do not, but will probably include high interest rates. Consumers will have to start at square one. Determine what you can afford and find the option that best fits you. Do you have a steady and reliable income? Then you may be able to get by with the high interest rates? Maybe you have unpredictable income. Opt for the pre-paid option. Or you may have a reliable income, but often make payments late. Then avoid the high interest cards like the plague. Its all about planning. Go back to square one and plan your credit card strategy.
The Best Credit Cards to Build Credit Are Often The Non-Desirables
Understand that as a consumer with bad credit, there is no easy way to build your credit back up again. You will have to give a little to experience the eventual rewards of responsible spending habits. Technically, the best credit cards to build credit are often the ones that consumers shy away from. Some of those cards include in-store or gas credit cards, secured credit cards, unsecured credit cards and prepaid â€œcreditâ€ cards. As mentioned before, you will probably have to choose between the lesser of the evils based on the plan youve created. High interest rates, annual fees and upfront fees will be your friend as you try to build credit. But, this is not to discourage consumers. If you opt for one of these options, they can put you on the right track when it comes to building up bad credit. Whichever card you choose, just be sure that your spending habits will be reported to major credit bureaus. If you maintain these habits, some credit cards often allow you to â€œgraduateâ€ to higher credit limits and lower interest rates.
Although you may have not had the best credit in recent years, you can still opt for the best credit card choices to build your credit. It is important, however, to be realistic in your decision, especially when there are so many different options available. Create a strategy and know that you do not have room to be picky. But with hard work and responsible spending habits, youll be able to obtain great credit scores and the best credit cards available.
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