What is the Best Credit Card to Build Your Credit?

Posted on In Credit Cards, Credit Score 

Having credit is an important part of life. It can help you to secure a large purchase like a car and even a home. Additionally, when you have a good credit score, it can dramatically impact your life and future in general.

It allows you to more easily be approved for a loan as well. The best option for this situation is a credit building credit card, of which there are some you should look into.

Discover it Student Cash Back Credit Card

One of the best credit cards for building credit is the Discover it Student Cash Back. With it, you can earn 5 percent cash back at a variety of places. This credit card can be used at grocery stores, gas stations, restaurants and Amazon.com. Other purchases made with the card earn you 1 percent unlimited cash back. There is no annual fee and the credit building credit card gives you a zero percent APR for the first six months on all purchases. After that time frame, the APR is between 14.99 to 23.99 percent. This is a great credit card for building credit for students.

Capital One Secured MasterCard

A secured credit card is an excellent option for building credit and boosting your credit score. It can also help you to rebuild. One of the best cards in that category is the Capital One Secured MasterCard. This card gives you a $200 credit line when you put down a deposit of $49, $99 or $200 toward it. There is no annual fee, an APR 24.99 percent and the ability to increase your credit line after your first five monthly payments are made on a timely basis. The credit building card also allows you to get free access to your monthly credit score. This credit card offers car rental and travel accident insurance, as well as extended warranty coverage. If you have bad credit you can check out options for bad credit at our credit cards for bad credit page here.

Capital One Platinum Credit Card

The Capital One Platinum credit card is good for building credit as well as for those who want to rebuild. There is no annual fee and the APR is 24.99 percent. You can get access to a higher credit limit after your initial five monthly payments are made on time. Enjoy unlimited access to credit tools like your VantageScore 3.0 credit score. You can sign for this card at capitalone.com Additional perks of this credit building credit card include 24-hour travel and roadside assistance and car rental insurance.

Capital One QuicksilverOne Cash Rewards Credit Card

Another good choice of credit card for building credit is the Capital One QuicksilverOne Cash Rewards credit card. With it, you can earn unlimited 1.5 percent cash back on all purchases and cash rewards in a variety of rotating categories. The card has a regular APR of 24.99 percent, a $39 annual fee and no balance transfer fees. While you build or rebuild your credit, you can also look forward to cash back rewards that never expire as long as you hold your account.

USAA Secured Card Visa Platinum Card

The USAA Secured Card Visa Platinum is a credit building credit card that is available for service members. Veterans and family members so can either build or rebuild their credit using USAA. A two-year certificate of deposit of $250 to $5,000 is needed to secure a credit limit, but it also earns interest. There is an APR range of 11.65 to 21.65 percent and a number of benefits, such as extended warranty coverage, travel accident insurance and trip cancellation insurance.

OpenSky Secured Visa Credit Card

The OpenSky Secured Visa is a credit building credit card that is appropriate for anyone building or rebuilding their credit. It comes with an annual fee of $35 and a regular APR of 19.14 percent. One of the best things about the card is that it is open to everyone to apply and there is no credit check needed. You simply put down a deposit as low as $200 and establish your credit line. This card is for building credit also reports to all three major credit bureaus like an unsecured card.

What are the Best Credit Cards for Dental Work? What Credit Score is Needed?

Posted on In Credit Cards, Credit Score 

The cost of dental procedures continues to go up as time progresses. This is the primary reason why many consumers seek dental help. It’s fair to say that a dental credit card is the perfect solution for dealing with expensive dental procedures. A credit card for dental work is one option you cannot afford to overlook if you don’t have dental coverage.

A dental credit card will put you in perfect position to pay your dental fees, but it’s important for you to know that your credit score will be checked. To be honest, it will be very difficult for you to get the nod from the bank if you don’t have fair to excellent credit. We will now take a close look at the best credit cards for dental work.

CareCredit

CareCredit is one card you can depend on for dental care. With your CareCredit card at your disposal, you can pay for your regular dental check-ups without any problems. You can apply for a CareCredit card on the telephone or online.

The CareCredit card gives you two options when it comes to paying your dental bills. You can choose the zero-interest option for 6 months, 12 months, or 18 months. You can also stretch it out to 24 months. If you go with the zero-interest financing, you must charge at least $200 with your card.

The low fixed rate will be more suitable if you need more time to pay your bill. The low fixed rate option gives you 24 months, 36 months, and 48 months to pay your bill. If you need more time, you can go with 60 months. The minimum charge is $1,000 if you decide to take advantage of fixed-rate financing. At the end of the day, you cannot deny that the CareCredit card is solid for covering dental expenses.

Wells Fargo Health Advantage

Are you in need of a dental credit card with flexible terms? The Wells Fargo Health Advantage card should be on top of your list. This card can be used for general and cosmetic dentistry. Please keep in mind that you must go through a credit check to get the card. However, the process is extremely fast.

With the Wells Fargo Health Advantage card, you will get a reasonable fixed rate with a chance to pay your dental bills over time. Besides paying your fees, this credit card will increase your credit score over time. This credit card for dental procedures is favored by many health and credit experts across the country.

Santander Ultimate Cash Back MasterCard

Dental help cannot get easier when you have the Santander Ultimate Cash Back MasterCard by your side. This dental credit card rewards you when you use it to pay your dental fees. In essence, you will be reducing your dental bills when you opt to use this card for your dental visits.

Let’s say you decide to get a cash advance to cover a general cleaning. Unlike other dental cards, you will not be facing a cash advance fee. The Santander Ultimate Cash Back MasterCard is a solid option for anyone in need of a reliable dental credit card.

Citi Double Cash Credit Card

The Citi Double Cash Credit Card will give you 2% cash back for every purchase. As you can see, using a dental credit card that offers cash back is one great way of reducing your dental bills. Fortunately, you will not have to pay an annual fee to be a card holder. It’s important to mention that you need good credit to get approved for this dental credit card.

Wells Fargo Platinum Visa

The Wells Fargo Platinum Visa is another good credit card for dental procedures. There is a 0$ annual percentage rate on purchases for 18 months. There’s no annual fee. You need a solid credit score to get approved.

City Simplicity

It would be a big mistake for you to ignore the City Simplicity card when you need dental help. You will get a 0% annual percentage rate for 12 months. There’s no annual fee and there are no late fees. You must have a 700 credit score to get approved for this card.

What is an Auto Credit Score? Find Out What Credit Score Car Dealers Use to Determine Rates

Posted on In Auto, Credit Score 

Your credit score is one of the most critical aspects of your financial life. Most people, however, are in the dark when it comes to issues on this topic. Especially when it comes to understanding what an auto credit score is. They do not know that credit scores affect one’s ability to access things such as jobs, loans, and apartments. While applying for a car loan, for instance, you need to know your credit score.

Knowing your credit scores before applying for a loan enables you to predict if you will be granted the car loan. It is also crucial because credit score and auto loan rates are what most lenders will use to determine the interest rates that you will pay.

Knowing your score helps you to better prepare and understand what you can get. You can also use this knowledge to negotiate for a better APR from your lender. This is due to the fact that your credit score and auto loan rates are very closely related.

Auto Credit Score

The auto credit status is a little different from the score that you and I access online through the various portals. Although they are interrelated, auto credit scores focus more on aspects that auto lenders view as important.

This is the reason why the credit scores that you get from most sources differs from what your auto loan provider gets. The credit scores are mainly based on the following five main factors

• The payment history – this determines 35%
• The amount of debt you have – this determines 30%
• The length of your credit history- this determines 15%
• The mix of credit – this defines 10%
• Your recent inquiries – this determines 10%

Your Auto Credit Score Breakdown

Auto credit scores are based on the applicant’s payment history and habits. Auto lenders believe that by using this strategy, they are able to predict if you are likely to default the payment when you come across financial turbulent.

When calculating auto credit scores, auto financiers do not openly admit how much each factor contributes. They, however, are known to focus on recent bankruptcies or signs that you are on your way to one. They also look at your short-term credit history as well as consider whether you have had any credit repairs. Finally, they consider if you previously defaulted on any auto loans or had any repossessions.

Your Auto Credit Rating Primarily Comes From Your FICO

FICO calculates the credit scores used by most automotive dealers. This information is usually tailored toward the auto industry and rarely will it get in the hands of the consumer. It is important to know that 90 percent of the lender’s decision is usually based on this score. It is important, therefore, to ensure that your score is high at any given time.

The difference between the auto credit score and the standard credit scores is enormous. It is interesting to note, however, that your likelihood to qualify for an auto loan is higher than your likelihood to qualify for a credit card most of the times. This decision is usually informed by research that indicates that consumers are more likely to ignore other payment but rarely do they ignore auto loan payments.

This is the reason why the auto industry prefers to calculate their score other than relying on the general credit rating. Borrowers, therefore, are urged to service their auto loans effectively so that they can improve their ability to get a better auto credit score in the future.

Auto Insurance Credit Score Breakdown

What does auto insurance credit score mean? Well, an auto insurance credit score can be defined as the score that insurance companies give to a particular individual. It is based on the probability of the individual to file for a claim while they are under the insurance cover.

This score is primarily based in the individual’s credit score. So, what does auto insurance credit score mean for insurance premiums? The score affects how much premiums a person pays for their cover. This is informed by the fact that the score indicates the person’s likelihood that they will file for a claim.

People with high auto insurance credit scores are less likely to file for a claim hence their premiums are usually low. On the other hand, people with low scores are more likely to file for claims. As a result, they have to pay higher premiums.

Improve Your Credit Score By Using These Simple Tips

Posted on In Credit Score 

Bad credit scores signal untrustworthiness to lenders. People with bad credit scores require co-signers and collateral to obtain the same car, motorcycle, home, and rental opportunities as good credit people.

Good scores, meanwhile, are appealing to lenders because they can choose the best offer without resistance. They also receive first priority on interest and terms of use negotiation. How can I obtain good credit scores? How do I increase your credit score by 50 points or faster?

State a Clear Objective

How do you approach a correct objective about the credit score? It begins by downloading TransUnion, Equifax, and Experian credit reports and analyzing the details for errors and spending habits. Enroll at FreeCreditReport.com, Credit Karma, or Credit Sesame to obtain the credit score without a credit card or paying money. View the score and vow to increase it to a respectable score (600-800) within a reasonable period. Increase your credit score by 200 points.

Resolve Issues with Collection Accounts

Increase your credit score by 20 points over time by resolving old and new debt accounts sitting in collections. Don’t assume there’s no account sitting in collections with your name on it. Obtain proof by calling the agency and asking. Pay off those accounts. Ensure the agency contacts the credit report agencies listed above to remove or update the debt status. Understand that it will remain on credit reports for the immediate future.

Stop Opening New Accounts

Your credit account remains stable when no new accounts are open. A new account automatically lowers credit score. Imagine having a car loan, a mortgage, and two credit cards. Part of the score is the average age of the four accounts. A fifth account divides the results by five. Unlike the other four’s rich history, a fifth account is a clean slate, hurting the results further. Even accounts with several rejected and active credit card, mortgage, and store applications simultaneously hurt the credit score. Only add accounts when it’s necessary.

Don’t Close Inactive Accounts

Reasons for closing an unused, yet active account is to bump up a credit score. The reality is an inactive account closes the account, yet doesn’t remove the history. The credit report will mention the account’s closing in the report, and the mention will decrease credit score drastically. How do I handle inactive accounts? Cut the card or hide it in a secure location. Never use the card again. Let the company close the account.

Add a Secured Credit Card

A solution on how to increase credit score with a credit card is a secured credit card. The secured credit card connects to a bank account. Cardholders place a predetermined amount inside the account as the credit limit. Cardholders use the card like an average credit card. Bad and good credit account holders can obtain a secured credit card, as it’s an alternative workaround from unsecured credit cards. It’s great for building credit and controlling spending. Secured credit cards increase your credit score by 200 points.

Improve Credit Card Bills

Paying bills on time AND in full monthly is how to increase credit score with a credit card. Additionally, keep account balances at zero or at a very low outstanding balance. This can improve credit score 100 points or more in a few months. Place emphasis on paying off high-interest rate cards first. Pay off debt fast by paying more than the minimum balance monthly or paying off debt twice a month.

Lower Maxed Out Credit Cards

Credit utilization combines outstanding debt with a credit limit. Maxed out credit cards may indicate good credit use, but it actually hurts credit score. Oddly enough, individuals with high credit scores don’t max out their cards. How can I lower credit utilization? Lower high balances. Maintain 30% of the credit limit. Higher than 30% lowers credit score, regardless of late or on-time payment. An alternative method is using debt consolidation. This will improve credit score 100 points.

Pay Bills on Time

On-time payment doesn’t revolve around credit cards alone. It’s exactly how to increase credit score with car loan and mortgage too. Make a note on the calendar to pay outstanding debt monthly. Likewise, register for online payments, automatic bill pay, monthly deadline alerts, or time management software. Increase your credit score by 50 points or more after several months.

Mitigate Late Payments

A late payment is a bad thing. It will affect credit negatively. Luckily, lenders don’t report late payments until after 30 or 60 days due date. How do you tackle late payments? Simply pay the bill ASAP. Keep the late payment bill in case disputes arise. View this as an opportunity for users to salvage or increase your credit rating by 20 points or more. This solution is how to increase credit score with car loan too.

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