Credit Cards: A New Opportunity To Improve Your Credit Score

 In Business

Click here to get this post in PDF

Every person has needs for themselves and their family, but not everyone is able to make all purchases out of their salaries and stay happy. Thus, they look for services which can offer them extra payment on a regular basis which can be repaid within specific timing, so that they can fulfill their family’s wants. These services are credit card services.

We all have been hearing about credit card services for many years which are now offered by almost every bank to let people enjoy the fulfillment of their wants, ahead of their needs. It is a known fact that those who choose to take credit cards, need to return the amount which they used for their purchases, to the bank within specific deadlines as per their billing statements. If this is not done, this affects the credit score which ultimately keeps you away from such service in future.

Finances are a big deal for anyone to manage. There are many examples out there in the world that have proven to manage their finances exceptionally well, including credit card payments. So, credit cards are a wonderful option when you are determined to manage your finances and plan your purchases properly.

There are millions of people out there on the globe that use credit cards for their purchases. Also, there are hundreds of people who are not able to pay the amount due on credit cards on time. This makes the credit score and credit history bad.

So, people with a bad credit history have very fewer options to come out of this situation and improve their credit score. Few banks in the market understand this situation and help you to give you a chance of improvement by providing you yet another credit card.

These types of credit cards can prove to be an amazing opportunity for those who look to turn up their credit history image to a good one so that they can remain to worried less in future and live up to a good lifestyle with good credit score.

Let us understand a few benefits of credit history builder credit cards:

  1. Improvement in credit score: These credit cards usually work like a regular credit card only, but as stated earlier, they are offered to people with a bad history and change their fortune of credit score.
  2. Security: There are hundreds of scams in the market relating to credit cards, but now credit cards of secured and trusted banks offer you more security so that you do not fall in any scam as a fish. Right, you’re your bank account details, your bank balance to your bank account transactions, everything is ensured with the highest
  3. Good cashback: Already having a bad history, if you are determined to pay debts of these credit cards, then you get good cash-backs which help you to pay your expenses again much easily.

So, as we see, if you have a bad credit history, there is still a way out to bring it to be normal, later to the best.

Now the next point is how to obtain this card? –

Two ways are followed by different banks who are offering this service. Some banks are providing such credit card when you apply for it, and your history check is done. Other banks use invitation method to provide you the card.

In the invitation method, selected people who have a bad history are offered these credit cards, and invitations are sent to them for obtaining this card. Once the invitation is accepted, they are made to understand the basic requirement as well as guidance how it will help them rebuild their credit score.

Let us see a few points how you can use this opportunity responsibly:

  1. Determination towards payment on time: If you are determined to pay the monthly balance amount of the statements on time, it will not cost you any extra interest or charges. This will keep on saving your money and gradually add bits to your credit score.
  2. Use the amount only that can be re-paid: It is always a wise step to gulp in the fact you should spend only within your limits. Your limit is defined by the amount you are able to pay back at the end of the month as debt. If you keep your purchase in the limit of credit card and pay the debts, your credit score graph will be on the uprise.
  3. Keep fewer credit cards: When you have this card, do not mix with other cards. Otherwise, it will be difficult for you to pay debts and will result in interest being paid.
  4. Understand the revolving credit: Credit card balance amount is in a revolving manner. As you clear your monthly debts, the same limit gets credited to your account, and you can re-use it, with a better credit score this time. But, understanding this responsibility to use only what is needed and what you can afford to repay is a wise decision, for which you will feel proud in the future.

When you decide to have such a card, you must search and find trusted banks who offer such a facility. For example, First savings bank offers you such credit card, and you can contact First savings bank about their credit card. Fees for such credit cards are usually less so that it doesn’t put an extra burden on you. Although, it is difficult initially to make bigger product purchases due to your low credit score, you can rebuild the reputation with these credit cards provided you are determined to be responsible.

Wrapping up

One must be able to manage their finance and always look for ways to keep their credit history to their best score. As you manage them well, credit limits of your cards get increased, looking at your regular payments. And there cannot be a better situation when you have a good credit score, good credit limit and access to big and expensive products for your family.

Recommended Posts
Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text.