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Top Credit Cards in Tough Times

Posted on August 28th, 2011 | admin

The global economy is such that many people are facing financial difficulties, and over the last 5 years, many people have opted for loans and other credit options which have caused more harm than good. While interest rates have fallen, making repayments easier to handle, the combination of high unemployment, a poor housing market, inflation, the rising costs for commodities like gas, and the weakening dollar have all combined to put many people under financial stress.

Getting a financial foothold means that, you need preferably a good credit history, with credit options giving you far more freedom of purchase and spending power. If you are new to the process of building capital and do not have a credit history, or if you are faced with mounting debts, then building or rebuilding a good credit is crucial for your future prosperity. There are many credit cards currently available which have this in mind.

Important Advice for Credit Builders and Rebuilders

If you are going to apply for a credit card, then there are many credit cards available which are specifically designed for those worst off, in the interests of helping people gain good credit for the future. However, you can only succeed in using these cards if you are careful.

If you are new to credit, then it is important to understand the implications of not paying your balance on time each month, and also the implications of not paying off what you spend each month in full. If you already have bad credit, then you probably already know the implications.

If you want to apply for a credit card simply to build up a good credit history, and if you already have cash flow, then it is beneficial to pay off your balance in full each month. Entry level credit cards are designed for users with no proven capital, and so the risks to the issuer are greater. As a result, APR can be as high as 30%, and so if you are not paying off your balance in full each month, this interest compounded will mean that you end up having to pay off far more than you originally spent.

In general you should approach your card at first as not necessarily a means for boosting your purchasing freedom, but as a device simply to build credit; use the card to make small routine payments like shopping each month, which can be paid off readily. Indeed, you may not be given high spending power initially, since most credit cards for bad or limited credit will only offer very small credit limits, usually $300-$500. Be sensible and timely with your payments, and don’t apply for a credit card because you are looking to make a large purchase.

This advice, along with the many excellent sites available which compare credit cards for a bad credit or no credit history, will ensure that when you apply for a credit card, you will be successful, and begin on the road of future credit prosperity.

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