So Are All Credit Cards Good

Category: Finance, Credit.

All credit cards offer many benefits and features.

To convey my point I will leave the disadvantages for others to write about. Some come with a few disadvantages. All credit cards are good in their own way for their own purpose and for that specific applicant. There are the so called" bad credit cards" and the" good credit cards. " Bad credit cards fit consumers looking to build" good credit. " Good credit cards fit consumers with good credit looking to take advantage of benefits that suit their daily lives. There are many credit cards for applicants with good credit, bad credit or with no credit at all. So are all credit cards good?

Consumers with good credit attract the credit cards that would better suit their income, spending habits and, credit history paying habits. Yes, because in some cases you have to start somewhere and sometimes, it comes at a price. Many credit cards that approach consumers with good credit tend to offer great transfer rates and lower interest rates on future purchases as long as the consumer's credit doesn' t change in the wrong direction. So the only challenging factor for someone with good credit is to maintain the good credit status and keep a close eye on your credit limit to credit debt ratio. Everyone has their individual needs and perceptions of their credit. In my opinion, your ratio should be at around 25% to 40% because it is a responsible level to be proactive in managing your credit cards.

Investing in a credit monitoring service also helps to keep a third eye on your credit so you can focus on your busy life. A 25% credit limit to credit debt ratio would be$ 2500 balance on a$ 1, 0000 credit limit. Consumers with bad credit attract the credit cards that seem to be outrageous because of interest rate, credit line or terms of the agreement such as annual fees and processing fees. Instead of them being called bad credit cards they should be called credit building cards. In my opinion, their is no such thing as a bad credit card as long as they report the account to Experian, Transunion and Equifax( CSC Credit Service) . If you cannot get over yourself by accepting a credit building card, maybe a secured credit card from your bank would be the best choice as long as they report to the credit bureau.

If you get a so called bad credit card then make sure you fulfill your end of the agreement, and don' t make excuses for not paying on time or letting it charge off because it was only$ 300I think one factor that makes that type of card good is that the credit lines are usually no more than$ 500That low of a credit line is a good thing because worst case scenario your minimum payment is between$ 100- $20Not bad for establishing a credit line that will be worth dividends in the long run. Never think bad credit is forever or that it can' t ever improve, it can with responsible steps. Yes, it will benefit you as time is established behind the credit card. So are bad credit cards good, of course they are. Credit building cards are only short term because once you have began to establish yourself with 2- 3 credit building cards your score will reflect the responsible habits and your score will begin to rise. Whether you have good or bad credit cards the responsibility is the same. These two simple steps, will keep your, if followed consistently credit cards as the good benchmark for your credit score to be based from.

Make your payments on time and watch your credit limit to credit debt ratio. I have only referenced your credit cards that allow minimum payments and not any other types of credit cards or other credit lines on your credit report. All cards have benefits and features that are advantageous to consumers or contain hidden value, even if the card does not seem very desirable. I have also not referenced the impact of derogatory items on your credit report that would affect the establishing of your credit. When you decide to get any credit card base it on your own financial need and on the advantages that will benefit you and your credit profile. Credit is life and life is credit, understand it wisely.