Improving Credit with Gas & Store Cards
Improving your credit with a credit card is usually the only way, other than time, to rebuild bad credit. There are several credit cards available to those with bad credit including prepaid, unsecured and secured cards. Prepaid cards only allow you to spend what you put into them and can help manage debt while rebuilding credit. They are a good way to purchase items when cash is not convenient or readily available. Unsecured cards often involve lower credit limits, higher credit rates and still don't guarantee approval. Be wary of crooked unsecured credit card schemes that claim good rates yet charge an arm and a leg worth of fees. Although secured credit cards offer somewhat better rates than unsecured cards, they require a savings account to be established with the bank. The amount in the savings account determines your limit but no part of the amount can be removed at all during the period you own and use the card. Debit cards can be dangerous for those who have trouble managing their credit. Although debit cards only allow a credit limit of what is in your bank account, purchases over your limit can be made. These, however, involve very high overdraft fees that can be detrimental to someone trying to rebuild their credit. Also, if a debit card is stolen there may be very little you can do to replace the funds, depending on the financial institution you are dealing with.. Gas credit cards can help you get rewards and cash back but often have pitfalls like having to use a certain gas station. Store credit cards are a bad idea for anyone trying to maintain or improve their credit. When shoppers are offered 10% discounts for applying, they fail to realize that each application lowers their credit score. Furthermore, store cards often have high interest rates that can devastate compulsive shoppers. Gas card companies and store cards do not usually report your credit history to credit bureaus, so if you have a good history with one of these cards, it could help your credit to ask that they report it.
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