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![]() ![]() The better your credit score, the more favorable the card terms. Thus, aligning with a main credit card member who has good to excellent credit habits can help improve your credit score.Īs your credit score improves, the types of credit cards available to you increase. You might be able to avoid interest charges by paying the balance in full within a promotional period, though if the balance isn’t fully paid by the deadline you’ll usually owe the full amount of deferred interest.īeing an additional card member can help repair a low credit score because your payment record is reported as that of the main card member. Retail stores tend to have more relaxed credit score requirements but high APRs to compensate for the risk. With a low credit score, you may also qualify for a retail credit card designed for large purchases, such as furniture, bedding, or appliances. You may, however, be eligible for a no annual fee credit card with limited rewards, in addition to the secured card and authorized user approach described above. A credit score between the minimum score of 300 and 579 is considered “very poor,” and a credit score between 580 and 669 is considered “fair.” 1 If your credit score falls into those ranges, your credit card options are limited but still available – in other words, you may not yet qualify for credit cards with the most valuable benefits and lucrative rewards. If your past payment history includes missed or late payments, bankruptcies, or foreclosures, you may have a low credit score. The income can be from a job, scholarship, or grant. And because many credit card companies no longer accept co-signers, to qualify for a student credit card you must have a sufficient income. Student credit cards generally have good perks but come with lower credit limits and high APRs on unpaid balances – from 13% to as high as 24%. ![]() ![]() Another category of credit cards is designed specifically for, and limited to, college students. If you miss a payment, the card issuer dips into the deposit to pay the amount you owe. If you consistently make on-time payments and keep your balances low, in time you can earn a credit score that qualifies you for a regular, unsecured credit card. ![]() As you use the card for purchases, you’re obligated to pay at least the minimum payment each month. The annual fees, if any, on these cards are usually lower than average, but the APRs are usually higher than credit cards for people with established credit. The deposit amount then becomes your credit limit. With a secured credit card, the card issuer offsets its risks by requiring you to pay a deposit, usually between $200 and $3,000. This option helps your credit score increase over time, provided that the main card member makes on-time payments.Ī secured card uses your deposit as a credit limit. But as an additional card member, you’re not responsible for making the payments. As an authorized user on another person’s card, you get a card with your name on it and the ability to charge purchases. Being added as an additional card member on someone else’s credit card.īeing an additional card member can help you build credit.Three first-time credit card options are: Even with no established credit – and, therefore, no credit score – you can still get a credit card. ![]()
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