building credit http://www.wisebread.com/taxonomy/term/12659/all en-US 5 Reasons Building Credit in College Helps You Win at Life http://www.wisebread.com/5-reasons-building-credit-in-college-helps-you-win-at-life <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-reasons-building-credit-in-college-helps-you-win-at-life" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_credit_card_514475258.jpg" alt="Woman building credit in college" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>As a college student, your credit score probably isn't a priority. You're too busy worrying about exams, homework, and scraping together enough money for a pizza on Friday night. But building good credit when you're in college is important. It can make it easier to rent an apartment, apply for a good credit card, and buy a car once you graduate. (See also: <a href="http://www.wisebread.com/the-5-best-credit-cards-for-college-students?ref=seealso" target="_blank">The 5 Best Credit Cards for College Students</a>)</p> <p>Many college students graduate with no credit score at all. That's because they've never used a credit card or paid off an installment loan, such as for a car or mortgage. They haven't even started paying off their student loans yet.</p> <p>Graduating with no credit makes life after college more challenging. Here are five big reasons why you should start building good credit when you're still in school.</p> <h2>1. Renting an apartment</h2> <p>In a recent survey by national credit bureau TransUnion, 48 percent of apartment landlords said that the results of a credit check rank among the top three factors they consider when deciding to lease an apartment to a potential renter.</p> <p>If your credit is bad, or if you don't have any credit at all, you'll struggle to rent an apartment on your own. You might have to rely on a co-signer, usually a parent, to sign the lease with you. If you can't find a co-signer, and you haven't built any credit while in college, finding your dream apartment, or even just a starter apartment, can get difficult.</p> <h2>2. Buying a car</h2> <p>Unless you buy a car with cash, you'll probably have to apply for an auto loan to finance the purchase of a new vehicle. Auto lenders study your credit, too. If they find that you don't have any history behind you, they'll be far less likely to approve you for the loan you need to buy that new car.</p> <p>Again, you might have to rely on finding a co-signer. This can be even more difficult for an auto loan. Not only are co-signers on an auto loan responsible for any payments you don't make, the loan will also be counted as their debt. This can make it more difficult for your co-signer to apply for new loans of their own.</p> <p>Overall, it's much easier to walk into an auto dealership knowing that you already have a credit history of your own.</p> <h2>3. Applying for student loans</h2> <p>You'll want a good credit history if you'll need to apply for private loans to help finance the cost of graduate or professional school. It's easier to get federal PLUS loans for graduate and professional schools with a lower credit score. However, you are limited in how much you can borrow through these federal sources.</p> <p>If you must borrow more, you might have to rely on private loans. And private lenders will take a close look at your credit. If you don't have a credit history, qualifying for one of these loans will be more challenging.</p> <h2>4. Being approved for credit cards</h2> <p>There are plenty of credit cards out there with <a href="http://www.wisebread.com/the-best-low-interest-rate-credit-cards?ref=internal" target="_blank">low interest rates</a> and valuable rewards programs. They can give you <a href="http://www.wisebread.com/5-best-cash-back-credit-cards?ref=internal" target="_blank">cash back on purchases</a> or let you <a href="http://www.wisebread.com/top-5-travel-reward-credit-cards?ref=internal" target="_blank">earn travel rewards</a> when you use your card.</p> <p>Without a credit history, and the credit score that comes with one, you'll struggle to qualify for one of these good cards. You might instead have to settle for a basic card with a higher interest rate.</p> <h2>5. Getting car insurance</h2> <p>Not having a credit history can even make qualifying for car insurance more of a challenge. If you do want to drive, and you can no longer stay on your parents' auto insurance policy, you'll have to apply for car insurance on your own. And many insurance companies today look at their own version of a credit score when determining who qualifies for insurance and at what rates.</p> <p>The lower your credit-based insurance score, the less likely you'll qualify for auto insurance &mdash; and the more likely you'll have to pay a higher premium if you do qualify.</p> <h2>Building a credit history</h2> <p>The best way to build a credit history while in college is to apply for a student credit card. These cards often come with lower limits. Some might even be <a href="http://www.wisebread.com/what-are-secured-credit-cards?ref=internal" target="_blank">secured cards</a>, meaning that you have to make a deposit into a bank account associated with the card. This deposit makes up your credit limit. (See also: <a href="http://www.wisebread.com/how-to-use-credit-cards-to-improve-your-credit-score?ref=seealso" target="_blank">How to Use Credit Cards to Improve Your Credit Score</a>)</p> <p>Once you get a card, use it, but use it wisely. Only buy what you can afford to pay off in full each month. Then pay off your entire balance by every due date. As you generate a record of on-time credit card payments, you'll steadily build a credit history. At the same time, you'll start building a solid credit score, too.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-reasons-building-credit-in-college-helps-you-win-at-life&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Reasons%2520Building%2520Credit%2520in%2520College%2520Helps%2520You%2520Win%2520at%2520Life.jpg&amp;description=5%20Reasons%20Building%20Credit%20in%20College%20Helps%20You%20Win%20at%20Life"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/5%20Reasons%20Building%20Credit%20in%20College%20Helps%20You%20Win%20at%20Life.jpg" alt="5 Reasons Building Credit in College Helps You Win at Life" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/5-reasons-building-credit-in-college-helps-you-win-at-life">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/debunking-8-common-credit-score-myths">Debunking 8 Common Credit Score Myths</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-every-parent-should-know-about-the-new-college-financial-aid-rules">What Every Parent Should Know About the New College Financial Aid Rules</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-moves-every-new-college-student-should-make">7 Money Moves Every New College Student Should Make</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/15-surprising-ways-bad-credit-can-hurt-you">15 Surprising Ways Bad Credit Can Hurt You</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-the-age-of-your-credit-history-matters">Why the Age of Your Credit History Matters</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Education & Training building credit co-signers college credit history credit score loans payment history renting students Mon, 28 Aug 2017 08:30:14 +0000 Dan Rafter 2010394 at http://www.wisebread.com 3 Ways Retirees Can Build Credit http://www.wisebread.com/3-ways-retirees-can-build-credit <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/3-ways-retirees-can-build-credit" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-471849363.jpg" alt="Learning ways retirees can build credit" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You might think that once you reach retirement, your credit score is just one of those things you get to stop worrying about. While it's true that most retirees won't be applying for mortgages, it's not true that you don't need to maintain a decent credit score. What if you want to apply for a car loan? What about credit cards? You certainly won't get the lowest interest rates and best rewards programs possible without a good credit score to back you up.</p> <p>A low credit score can also hurt you if you want to downsize to an apartment, or even move into a senior living facility. You might need a solid credit score to qualify.</p> <h2>Why it's hard for retirees to build credit</h2> <p>According to FICO, to have a credit score, you must have at least one credit account that is at least six months old. You must also have at least one account that has been updated by a creditor or lender during the last six months.</p> <p>If you aren't paying a mortgage, paying off an auto loan, or using credit cards, you might not meet any of these requirements. This might lead to you becoming what FICO calls an &quot;unscorable,&quot; a consumer who has no credit score at all.</p> <p>Fortunately, there are ways for retirees to continue building credit. They require the same good financial habits you've been practicing before retirement.</p> <h2>Use the credit cards you have</h2> <p>You might prefer paying for items in cash. Instead, make small purchases throughout the month with your credit card. If you pay off your entire card balance each month, you'll continue to boost your credit score. (See also: <a href="http://www.wisebread.com/how-to-use-credit-cards-to-improve-your-credit-score" target="_blank">How to Use Credit Cards to Improve Your Credit Score</a></p> <p>Make sure that you don't charge more than you can pay off by the due date. If you do, you'll be stuck paying interest.</p> <p>Never pay late. If you pay your credit card 30 days or more late, your card provider will report your payment as late to the national credit bureaus of TransUnion, Experian, and Equifax. This will cause your credit score to plummet. (See also: <a href="http://www.wisebread.com/5-simple-ways-to-never-make-a-late-credit-card-payment?ref=seealso" target="_blank">5 Simple Ways to Never Make a Late Credit Card Payment</a>)</p> <h2>Keep unused credit card accounts open</h2> <p>You might have a credit card that you never use, but don't close it. Having open credit card accounts helps your credit score, thanks to something called a <a href="http://www.wisebread.com/this-one-ratio-is-the-key-to-a-good-credit-score?ref=internal" target="_blank">credit utilization ratio</a>.</p> <p>This ratio measures your credit card balances against your total available credit limits, and it accounts for 30 percent of your score. Using too much of your available credit will cause your score to drop, while using a modest amount will help it rise. It's typically recommended that you not let debt tip this ratio beyond 30 percent. If you have a paid-off credit card that isn't getting much use, closing it will lower your overall available credit limit and your utilization ratio will then increase. (See also: <a href="http://www.wisebread.com/how-to-ditch-a-credit-card-without-dinging-your-credit-score?ref=seealso" target="_blank">How to Close a Credit Card Without Dinging Your Credit Score</a>)</p> <p>So, keep those unused cards tucked in your wallet. Having that extra credit that you're not using will provide a boost to your score.</p> <h2>Apply for a secured credit card</h2> <p>If you no longer have any credit cards, and you've become an unscorable, you can still build your credit. Your first step should be applying for a <a href="http://www.wisebread.com/the-5-best-secured-credit-cards?ref=internal" target="_blank">secured credit card</a>.</p> <p>You don't need a credit score to qualify for one of these cards. Their line of credit is based on the amount of money you deposit into an account with the financial institution issuing the card. (See also: <a href="http://www.wisebread.com/a-secured-credit-card-can-repair-your-credit-score-heres-how-to-pick-the-best?ref=seealso" target="_blank">How to Pick the Best Secured Credit Card</a>)</p> <p>If you deposit $1,000 into an account, you can then charge up to $1,000 on your secured credit card. Every time you use your secured card and pay off these charges on time, you'll get a boost to your credit score. Do this long enough, and you can build a score that's high enough to qualify for a traditional credit card.</p> <p>Again, take the same precautions you'd take with a traditional credit card. Pay your bill on time each month, and never charge more than you can afford to pay in full by your due date.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/3-ways-retirees-can-build-credit">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-ditch-a-credit-card-without-dinging-your-credit-score">How to Close a Credit Card Without Dinging Your Credit Score</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/building-a-credit-history">Building a Credit History</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-7-debt-payoffs-that-boost-your-credit-score-the-most">The 7 Debt Payoffs That Boost Your Credit Score the Most</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-your-credit-score-matters-in-retirement">Why Your Credit Score Matters in Retirement</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-myths-about-credit-cards-that-wont-go-away">5 Myths About Credit Cards That Won&#039;t Go Away</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement building credit credit score credit utilization ratio debts fico retirees Wed, 26 Apr 2017 20:00:10 +0000 Dan Rafter 1934072 at http://www.wisebread.com 4 Reasons to Add Your Teen as an Authorized User on Your Credit Card http://www.wisebread.com/4-reasons-to-add-your-teen-as-an-authorized-user-on-your-credit-card <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-reasons-to-add-your-teen-as-an-authorized-user-on-your-credit-card" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-501708788.jpg" alt="A teen getting added as authorized user on a credit card" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Giving your kid access to your credit card account might make you squirm, but there are some good reasons to do it. Teens need to be educated about credit before they leave the nest and get their own credit cards. While you could just hand them your credit card whenever they want to make a purchase, there are extra benefits to making them an authorized user on your account.</p> <p>An authorized user gets a card in their own name and can make purchases just like the primary user on the account. However, only the primary user is responsible for paying the charges. That sounds scary but there are ways to handle the situation so that your child gets the most from it without landing you in debt. (See also: <a href="http://www.wisebread.com/what-you-need-to-know-about-adding-another-user-to-your-credit-card?ref=seealso" target="_blank">What You Need to Know About Adding Another User to Your Credit Card</a>)</p> <p>Let's look at the notable benefits that come with making your child an authorized user on your account.</p> <h2>1. Lessons on Credit and Debt</h2> <p>Teenagers may not really understand what credit is until they experience it firsthand. By introducing teenagers to credit early on, they can gain an understanding of what it means to owe someone money &mdash; and that every dollar spent must be paid back. They'll also learn about credit card interest this way, and how not paying your balance in full means owing more money over time.</p> <p>To make this lesson effective, you'll need to establish with your teen that they are responsible for paying the charges they make and any interest they incur. If you simply pay for all their purchases, they'll learn very little about responsible credit card use.</p> <p>For example, your teen might use their authorized user card for new clothes at the mall without a care in the world. When the bill arrives, however, if you have made it clear that they will have to pay for the charges, they'll be forced to face the consequences of their spending.</p> <p>If they've kept the cash on hand to pay their bill, they can be proud of that accomplishment. If not, they'll learn what it means to carry a balance and pay interest. And when those $49 jeans end up costing $61, they might feel the pain of their decisions in a way no other method of learning can convey. (See also: <a href="http://www.wisebread.com/13-things-to-teach-your-kids-about-credit-cards?ref=seealso" target="_blank">13 Things to Teach Your Kids About Credit Cards</a>)</p> <h2>2. Lessons in Budgeting</h2> <p>The example above presents a great way to introduce kids to another adult concept &mdash; <a href="http://www.wisebread.com/11-budgeting-skills-everyone-should-master?ref=internal" target="_blank">budgeting</a>. Whether they're buying clothes at the mall or hitting the movies with friends, they should learn how to budget their money so they can pay their bill when it comes due.</p> <p>If a teenager charges on their card often enough &mdash; and sees that bill roll in time after time &mdash; they'll get used to the fact they need to keep enough money handy to cover their purchases.</p> <p>This lesson can carry through to nearly every aspect of their lives as they become adults. They'll need the money in the bank to cover the mortgage or rent payments one day, for example. They can start developing good habits early by learning to anticipate bills and creating a budget that works with the amount of money they earn, whether it's through an allowance or a part-time job. (See also: <a href="http://www.wisebread.com/7-important-lessons-frugal-parents-teach-their-children?ref=seealso" target="_blank">7 Important Lessons Frugal Parents Teach Their Children</a>)</p> <h2>3. Emergency Spending</h2> <p>If you're not too keen on handing your kids cash every day, making them an authorized user on your credit card is a smart alternative. With a credit card for emergencies, your teen may be less likely to waste your &quot;emergency money&quot; on a frivolous purchase. After all, a credit card will create a paper trail that shows parents where that money was spent.</p> <p>And since emergencies can happen at any time, it's nice to know your kids will have money in the form of a credit card if they end up in a pickle.</p> <h2>4. Credit Building</h2> <p>Perhaps the most important reason to add your child as an authorized user is to help them <a href="http://www.wisebread.com/building-a-credit-history?ref=internal" target="_blank">build a credit history</a>. As an authorized user, the action on your credit card account will likely be reported to <em>your teen's credit report</em>. Assuming you use the card responsibly and keep the balance low, your teen will benefit from <em>your </em>good habits and, over time, earn a good credit score. That foundation can give them a leg up in the financial world for years to come.</p> <p>Of course, adding your child as an authorized user is just the first step. Once they get old enough, they can apply for their own <a href="http://www.wisebread.com/the-5-best-credit-cards-for-college-students?ref=internal" target="_blank">student credit card</a> that can help them approach credit use with baby steps.</p> <h2>Adding Your Teen: What to Watch Out For</h2> <p>While adding a teen as an authorized user to your credit card account is certainly beneficial for them, that doesn't mean it's risk-free for the primary cardholder &mdash; you. As the account owner, you'll be responsible for any charges your teenager racks up &mdash; and that's true whether they make a good-faith effort to repay or not.</p> <p>One way to prevent a catastrophe is to set a spending limit on your teen's authorized user card. With a spending cap in place, their card will be denied if they try to charge more than their limit allows. Unfortunately, only a few cards &mdash; most of them American Express cards &mdash; allow you to have a separate spending limit for an authorized user.</p> <p>Worried you won't be able to keep track of your purchases and theirs? One strategy that can keep things straight is to add your child as an authorized user on a credit card you rarely use. That way, their purchases won't become intermingled with yours and you can easily track what they spend and how much they owe.</p> <p>You can also keep a running tab on what's going on with your card by creating phone or email alerts for every time your account is used.</p> <p>Whatever you do, make sure to set rules in writing, so they're crystal clear. Let your kid know exactly what they're allowed to purchase, how much they can spend, and how repayment will work. If they appear to be getting in over their head, take the card away from them.</p> <p>Some children need to gain more maturity before handling credit, and there's no sense harming both of your credit records. In those cases, getting them a <a href="http://www.wisebread.com/5-best-prepaid-debit-cards?ref=internal" target="_blank">prepaid debit card</a> may be a good interim measure for teaching them about budgeting. Prepaid cards don't help them build credit, but they can't hurt anyone's credit record, either.</p> <p>Whichever way you go, it's important to start teaching your kids early about credit, debt, and bill paying. Your kids will be adults before you know it. Let them learn about money while they're still under your guidance, and they might not have to learn every lesson the hard way. (See also: <a href="http://www.wisebread.com/4-signs-you-are-teaching-your-kids-bad-financial-habits?ref=seealso" target="_blank">4 Signs You're Teaching Your Kids Bad Financial Habits</a>)</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/holly-johnson">Holly Johnson</a> of <a href="http://www.wisebread.com/4-reasons-to-add-your-teen-as-an-authorized-user-on-your-credit-card">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-the-holidays-to-teach-kids-about-money">How to Use the Holidays to Teach Kids About Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-fun-games-that-teach-your-kids-about-money">6 Fun Games That Teach Your Kids About Money</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-your-bad-credit-can-impact-your-kids">How Your Bad Credit Can Impact Your Kids</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-best-sites-to-help-your-kids-learn-about-money">8 Best Sites to Help Your Kids Learn About Money</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-fun-books-that-will-get-your-kids-excited-about-money">10 Fun Books That Will Get Your Kids Excited About Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Credit Cards Family authorized users budgeting building credit credit history emergency spending kids money lessons teens Thu, 02 Mar 2017 10:30:27 +0000 Holly Johnson 1900236 at http://www.wisebread.com 5 After the Holidays Moves Your Credit Score Will Thank You For http://www.wisebread.com/5-after-the-holidays-moves-your-credit-score-will-thank-you-for <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-after-the-holidays-moves-your-credit-score-will-thank-you-for" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-619645214.jpg" alt="make these moves after the holidays to boost your credit score" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>The fun part of the holidays is over. Now it's January, and your credit card bill has arrived. It's time for the dark side of the holiday season &mdash; paying for all that December cheer. If you shattered your holiday spending budget, don't panic: Now is the time to take the steps that will not only improve your finances, but boost your all-important credit score.</p> <p>Ready to put the overspending and impulse buying of the holidays behind you? Here are five post-holiday money moves that will give you a stronger credit score in 2017.</p> <h2>1. Pay on Time</h2> <p>You might not be able to pay off your entire holiday credit card bill at once. That's unfortunate, because credit card debt comes with high interest. But if you pay off a bit of the holiday debt every month on time, you will be helping your credit score.</p> <p>The three national credit bureaus of TransUnion, Equifax, and Experian track your on-time credit card payments. If you pay your credit card on time each month, your score will improve. If you are more than 30 days late on a payment, your score will plummet, usually by 100 points or more. And this missed payment will remain on your credit report for seven years.</p> <p>No one likes holiday debt. But look at it as a way to show the credit bureaus that you are responsible enough to make these payments on time. Doing so will do wonders for your credit score.</p> <h2>2. Do a Balance Transfer</h2> <p>Make a plan that will determine how long it will take you to pay down your current debt, and find a <a href="http://www.wisebread.com/the-best-0-balance-transfer-credit-cards?ref=internal" target="_blank">0% balance transfer credit card</a> that offers an intro APR for that amount of time. Some credit cards offer as much as 21 months at 0% financing. This can <a href="http://www.wisebread.com/fastest-way-to-pay-off-10000-in-credit-card-debt?ref=internal" target="_blank">save you hundreds to thousands</a> of dollars in interest, and help you pay off the debt faster. Do this only if you have a plan to pay off your debt completely within the intro period. (See also: <a href="http://www.wisebread.com/7-important-things-you-should-know-about-balance-transfer-cards?ref=seealso" target="_blank">What You Need to Know Before Doing a Balance Transfer</a>)</p> <h2>3. Don't Close Unused Credit Cards</h2> <p>If you do pay off a credit card, congratulations! That's a great feeling. But don't close that account, even if you never plan to use your card. Closing unused credit cards will hurt your credit score. That's because of something known as your <a href="http://www.wisebread.com/this-one-ratio-is-the-key-to-a-good-credit-score?ref=internal" target="_blank">credit-utilization ratio</a>. Your score will be higher if you are using less of your available credit. If you close a credit card, you will automatically be lowering the amount of credit available to you and increasing your credit-utilization ratio.</p> <h2>4. Order Your Credit Reports</h2> <p>TransUnion, Equifax, and Experian each keep a credit report on you. These reports list your open credit accounts, including credit cards, mortgages, student loans, and auto loans. They also list how much you owe on these accounts and whether you have made any late payments. The reports also list any bankruptcies that are up to seven or 10 years old, and any foreclosures that are up to seven years old.</p> <p>You can order one report from each of the three credit bureaus at no charge from AnnualCreditReport.com. Do it. Then check over your report for any potential mistakes. If you find errors, notify the offending bureau by email. Correcting mistakes can provide an immediate boost to your credit score. And even if you don't find any errors, it's always good to know exactly what kind of information the bureaus have about you.</p> <h2>5. Make a Household Budget</h2> <p>If you want to avoid overspending again next year, and avoid running up the kind of credit card debt that can hurt your credit score, draft a household budget <em>this</em> year. A budget doesn't have to be complicated to be effective. List your monthly revenues and your monthly expenses. Be honest about what you typically spend on items that can fluctuate each month, such as groceries, dining out, and entertainment.</p> <p>Once you have these numbers, you can budget how much you want to spend throughout the year on gifts, decorations, and food for all of the big holidays, not just those that roll around each December. Armed with a budget, your odds of not overspending will increase.</p> <p>Now that the holiday season is over, it's time to change your charging habits. Only charge what you can pay off in full each month. If you want to charge a flat-screen TV, make sure you have enough money saved up to pay it off in full when your next credit card statement comes due.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/5-after-the-holidays-moves-your-credit-score-will-thank-you-for">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-things-your-credit-report-does-not-include">7 Things Your Credit Report Does NOT Include</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/heres-why-you-shouldnt-freak-out-if-you-miss-a-payment-due-date">Here&#039;s Why You Shouldn&#039;t Freak Out If You Miss a Payment Due Date</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-reasons-building-credit-in-college-helps-you-win-at-life">5 Reasons Building Credit in College Helps You Win at Life</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-signs-youre-making-all-the-right-money-moves">6 Signs You&#039;re Making All the Right Money Moves</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-credit-repair-mistakes-that-will-cost-you">8 Credit Repair Mistakes That Will Cost You</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Budgeting back on track bills building credit credit history credit repair credit score debt repayment post holidays Thu, 22 Dec 2016 10:00:10 +0000 Dan Rafter 1859598 at http://www.wisebread.com How to Build Credit Without Using Credit Cards http://www.wisebread.com/how-to-build-credit-without-using-credit-cards <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-build-credit-without-using-credit-cards" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_reading_letter_73633147.jpg" alt="Woman learning how to build credit without credit cards" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>There are lots of reasons people avoid using credit cards. The <a href="http://www.wisebread.com/everything-you-didn-t-understand-about-credit-card-interest-grace-periods-and-penalty-aprs?utm_source=wisebread&amp;utm_medium=internal&amp;utm_campaign=cc_article">interest rates on credit cards</a> can be horrible &mdash; in some cases, 20% or higher. And walking around with a large amount of spending power in your pocket can lead to unintended purchases and being saddled with big credit card payments. So, you might be forgiven for thinking that your credit rating would be higher if you just didn't use credit cards. (See also: <a href="http://www.wisebread.com/how-to-rebuild-your-credit-in-8-simple-steps%20?utm_source=wisebread&amp;utm_medium=seealso&amp;utm_campaign=cc_article">How to Rebuild Your Credit in 8 Simple Steps</a>)</p> <p>Important <a href="http://www.wisebread.com/this-one-ratio-is-the-key-to-a-good-credit-score?utm_source=wisebread&amp;utm_medium=internal&amp;utm_campaign=cc_article">factors in calculating your credit score</a> include on-time payment history and available credit. If you don't use credit cards or make any loan payments, you may not have sufficient <a href="http://www.wisebread.com/how-to-use-credit-cards-to-improve-your-credit-score%20?utm_source=wisebread&amp;utm_medium=internal&amp;utm_campaign=cc_article">credit history to obtain a high credit score</a>. It seems illogical, but if you don't have any debt, you can end up with a poor credit rating due to lack of recent credit history!</p> <p>But let's say you're still not interested in using credit cards. How do you build your credit without them?</p> <h2>Be Added as an Authorized User</h2> <p>An easy and free way to boost your credit rating is to have a family member add you as an authorized user on one of their cards so you can get the available credit and payment history added to your credit report. Make sure that person has a good credit history and can be counted on to make on-time payments and to keep their balance low. Agree that you will not use the card (even better, let them hold onto your card). For a bigger boost, ask to be added to the card with the highest available credit and lowest debt.</p> <h2>Get a Secured Credit Card</h2> <p>Most consumer credit cards are unsecured. If you don't trust yourself with access to credit, a <a href="http://www.wisebread.com/a-secured-credit-card-can-repair-your-credit-score-heres-how-to-pick-the-best%20?utm_source=wisebread&amp;utm_medium=internal&amp;utm_campaign=cc_article">secured credit card can improve your credit score</a>. To get a secured credit card, you have to put down a deposit, which would then be your available credit. You can't use more money than you've already put in. If you have some cash to make a security deposit, this can be a good way to establish a good credit history by making on-time payments to build your credit score, without the temptation to spend more than you have. The <a href="http://www.wisebread.com/the-5-best-secured-credit-cards%20?utm_source=wisebread&amp;utm_medium=internal&amp;utm_campaign=cc_article">best secured cards</a> even come with valuable cardholder benefits such as extended warranty coverage and automobile rental insurance.</p> <h2>Take Out a Loan</h2> <p>Even if you don't need to borrow money, you can take out a loan, have the funds deposited in your account, and make payments on time to boost your credit rating. You can find lenders at <a href="https://www.prosper.com">Prosper</a>, <a href="http://track.flexlinks.com/a.ashx?foid=1029882.227343&amp;fot=1074&amp;foc=1">Lending Club</a>, or <a href="https://www.selflender.com">Self Lender</a>. You will pay a small amount of interest fees, but building your credit rating can save you lots of money in the long run.</p> <h2>Make Car Payments on Time</h2> <p>Car loans typically have much lower interest rates, and you can build your credit history with on-time car loan payments. A big problem with car loans is that people tend to buy much more expensive cars than they would if they had to pay cash. One strategy is to buy the same car you were going to buy with cash, but put down a large deposit, and get a car loan for the rest. Use your cash to make the loan payments on time for the life of the loan. You will pay a little more for the car due to interest and fees, but this is a relatively low-cost way to build your credit history.</p> <h2>Make Student Loan Payments on Time</h2> <p>If you have student loans, making your payments on time counts to build your credit history. Set up automatic payments to make sure you never have any late or missed payments reported.</p> <p><em>How do you maintain a good credit rating without using credit cards?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dr-penny-pincher">Dr Penny Pincher</a> of <a href="http://www.wisebread.com/how-to-build-credit-without-using-credit-cards">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-things-your-credit-report-does-not-include">7 Things Your Credit Report Does NOT Include</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-reasons-building-credit-in-college-helps-you-win-at-life">5 Reasons Building Credit in College Helps You Win at Life</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-smart-reasons-to-pay-your-credit-card-bill-before-its-due">6 Smart Reasons to Pay Your Credit Card Bill Before It&#039;s Due</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/building-a-credit-history">Building a Credit History</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-secured-credit-card-facts-to-remember">6 Secured Credit Card Facts to Remember</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Credit Cards authorized user bills building credit credit history credit score loans payments Mon, 08 Aug 2016 09:30:29 +0000 Dr Penny Pincher 1767115 at http://www.wisebread.com 4 Reasons Millenials Should Invest in a Home http://www.wisebread.com/4-reasons-millenials-should-invest-in-a-home <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-reasons-millenials-should-invest-in-a-home" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/couple_moving_boxes_43085150.jpg" alt="Millennial couple deciding to invest in a home" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you believe popular culture, most Millennials don't want to buy homes and would rather rent. But the numbers suggest otherwise. The National Association of Realtors found that in 2015, Millennials made up 35% of all homebuyers, up from 32% in 2014. No other age group represented a bigger percentage of buyers last year.</p> <p>If you're a Millennial who wants to make the jump from renting to owning, congratulations: There are several reasons why owning a home is a smart financial move for younger buyers.</p> <h2>Owning a Home Is an Investment</h2> <p>No one can guarantee that the home you buy will have increased in value by the time you're ready to sell. But the odds are high that it will.</p> <p>Just look at the most recent sales statistics released by the National Association of Realtors: The median existing-home price across the nation stood at $247,700 in June. That was up 4.8% from June of 2015, when that number stood at $236,300. This June marked the 52nd consecutive month that the median price rose.</p> <p>Just remember that price increases, though possible, aren't guaranteed. Plenty of people who bought homes in 2005 and 2006, before the housing market began its crash in 2007, still owe more on their mortgage loans than what their homes are worth. Many of these homes still are worth less today than what they sold for back then.</p> <h2>Interest Rates Are Still Low</h2> <p>If you're like the vast majority of buyers, you'll need a mortgage loan to finance the purchase of a home. Borrowing mortgage money today, though, is affordable thanks to historically low mortgage interest rates.</p> <p>According to the Freddie Mac Primary Mortgage Market Survey, the average interest rate on a 30-year, fixed-rate mortgage loan stood at 3.45% for the week ending July 21. For a 15-year, fixed-rate loan, that rate stood at 2.75%. These low rates mean that your monthly mortgage payment will be lower than if rates were closer to the 5% range.</p> <h2>You Can Build Equity</h2> <p>Every time you make a monthly mortgage payment, and pay down your home loan's principal balance, you build equity in your home. Say your home is worth $200,000 and you owe $180,000 on your mortgage loan: You have $20,000 worth of equity.</p> <p>You can borrow against this equity, in the form of <a href="http://www.wisebread.com/home-equity-loan-or-heloc-which-is-right-for-you">home equity loans</a> or home equity lines of credit, to fund major home improvements, <a href="http://www.wisebread.com/oops-i-maxed-out-my-credit-cards-now-what?ref=internal">pay down credit card debt</a>, or even to help fund a child's college education. When you are renting, your monthly rent check disappears in your landlord's bank account.</p> <p>Do exercise caution, though, when borrowing against your home's equity. You will have to pay back whatever you borrow, in monthly installments. Don't add too much monthly debt to your expenses or you will feel the financial squeeze. And if you can't afford to make your monthly equity loan payments, you could lose your home to your lender.</p> <p>You can boost your credit score: Your FICO credit score is a key number. Lenders rely on it to determine if you're a good lending risk. The higher your score, the more likely you are to qualify for loans and credit, and the lower the interest rate attached to these loans.</p> <p>By paying your monthly mortgage payment on time each month, you'll steadily boost your credit score. Payment history makes up 35% of your FICO score.</p> <h2>Tax Breaks</h2> <p>Owning a home also comes with tax breaks each year. The interest you pay each year on your home is tax-deductible. This break pays off more in the earlier years of owning a home, because the majority of your mortgage payment at this time is interest.</p> <p><em>Are you ready to move from renting to buying? What's holding you back? </em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/4-reasons-millenials-should-invest-in-a-home">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-is-private-mortgage-insurance-anyway">What Is Private Mortgage Insurance, Anyway?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/thinking-of-skipping-the-home-inspection-heres-what-it-will-cost-you">Thinking of Skipping the Home Inspection? Here&#039;s What It Will Cost You</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/weak-credit-you-can-still-get-a-mortgage-despite-tough-lending-standards">Weak Credit? You Can Still Get a Mortgage Despite Tough Lending Standards</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-you-should-be-saving-big-with-bi-weekly-mortgage-payments">Why You Should Be Saving Big With Bi-Weekly Mortgage Payments</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-tax-deductions-new-homeowners-shouldnt-skip">4 Tax Deductions New Homeowners Shouldn&#039;t Skip</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing building credit buying a house equity interest rates millennials new homeowners tax breaks young adults Fri, 05 Aug 2016 09:00:08 +0000 Dan Rafter 1766255 at http://www.wisebread.com A Low APR Secured Credit Card: Excent Secured http://www.wisebread.com/a-low-apr-secured-credit-card-excent-secured <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/a-low-apr-secured-credit-card-excent-secured" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock_000040170326.jpg" alt="woman using credit card" title="woman using credit card" class="imagecache imagecache-250w" width="250" height="172" /></a> </div> </div> </div> <p>Consumers with bad or no credit often find it difficult to get approved for a credit card. If you are just starting out or have had credit problems in the past, you may find your only option is a <a href="http://www.wisebread.com/what-are-secured-credit-cards?ref=review">secured credit card</a>. The Excent&trade; Secured Credit Card offers a solution for those building or rebuilding their credit. (See also: <a href="http://www.wisebread.com/the-5-best-secured-credit-cards?ref=review">Best Secured Credit Cards</a>)</p> <h2>How This Card Works</h2> <p>Approval is guaranteed as long as your monthly income exceeds expenses by $100. A security deposit of $200 to $5,000 is required. When you make your security deposit, you receive a credit card with a limit in the amount of the deposit. You can increase your credit limit to a maximum of $5,000 by making additional deposits in $50 increments. Your security deposit is held in a savings account with First Choice Bank, which earns interest. As you use your card and manage your account responsibly, your payments are reported to the three major credit bureaus, helping you to establish a good credit rating.&nbsp;</p> <p><strong>Guaranteed approval</strong>. Although you would think that everyone automatically qualifies for secured credit cards, this isn&rsquo;t always true. There are credit card issuers with stricter requirements than others, even while requiring a security deposit. With the Excent card, however, you are guaranteed approval as long as your income exceeds your monthly expenses by at least $100. (See also: <a href="http://www.wisebread.com/5-best-secured-credit-cards-that-don-t-require-credit-checks?ref=review">Secured Credit Cards That Don't Require a Credit Check for Approval</a>)</p> <p><strong>Deposit earns interest</strong>. Your security deposit earns interest in a savings account while your credit card is open. You won&rsquo;t get rich from the interest you earn, but when you close your account, you&rsquo;ll receive a little more than you started with in the beginning. And, not all secured credit cards allow you to earn interest on your security deposit. (See also: <a href="http://www.wisebread.com/5-best-secured-cards-that-pay-interest-on-your-deposit?ref=review">Secured Cards that Pay Interest on Your Deposit</a>)</p> <p><strong>Low APR</strong>. The APR with many other secured credit cards is significantly higher than those on unsecured cards &mdash; sometimes nearly 30%. This is especially helpful if you typically carry a balance from month to month. The APR of 13.99% fixed is among the lowest offered by any credit card, secured or not. (See also: <a href="http://www.wisebread.com/5-best-secured-credit-cards-with-low-aprs?ref=review">Best Secured Cards with Low APRs</a>)</p> <h2>Costs</h2> <ul> <li>$39 Annual Fee</li> <li>13.99% fixed purchase APR</li> <li>3% Foreign Transaction Fee</li> <li>Up to $49 Credit Limit Increase Fee</li> <li>$0.50 Automated Account Information Fee for each separate inquiry (no charge for first two in a billing cycle)</li> </ul> <h2>Considerations</h2> <p><strong>High annual fee</strong>. The annual fee can be considered particularly high especially since there are secured cards with no annual fee at all. However, cards with lower annual fees also have higher interest rates. If you are planning on leaving a balance, the higher annual fee may be worth it. (See also: <a href="http://www.wisebread.com/5-best-secured-cards-with-no-annual-fee?ref=review">Best Secured Credit Cards with No Annual Fee</a>)</p> <p><strong>Additional fees</strong>. This card includes a number of extra fees such as the copying charge, additional card fee, and inquiry fee. Further, there is a fee if you request a credit limit increase even though you are already adding your own money to the deposit for the increase. If you use any of these features, these fees will add up quickly.</p> <p><strong>No rewards or benefits</strong>. The Excent card does not include any additional card benefits or rewards. Although these aren&rsquo;t features that secured cards typically offer, they are options if you prefer to earn at least a little extra from your purchases while rebuilding your credit.&nbsp;</p> <p><strong>Foreign transaction fee</strong>. Secured credit cards also usually carry foreign transaction fees, which can be an additional expense if you need to use your card for foreign purchases. If you travel frequently outside of the U.S. you should choose a secured card with a lower or no foreign transaction fee. (See also: <a href="http://www.wisebread.com/5-best-secured-cards-with-low-or-no-foreign-transaction-fees?ref=review">Secured Cards with Low or No Foreign Transaction Fees</a>)</p> <h2>Who This Card Is Best For</h2> <p>This card is best for those who are working on building or repairing their credit rating. If you have been denied by other credit card providers, you may have a better chance of approval as long as your income is $100 more than your monthly expenses. Because of the low APR it&rsquo;s also ideal for those who typically carry balances from month to month. Although you will pay a slightly higher annual fee, it will be difficult to find many other secured credit cards with APRs as low.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/christina-majaski">Christina Majaski</a> of <a href="http://www.wisebread.com/a-low-apr-secured-credit-card-excent-secured">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-5-best-secured-credit-cards">The Best Secured Credit Cards</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/a-secured-credit-card-can-repair-your-credit-score-heres-how-to-pick-the-best">A Secured Credit Card Can Repair Your Credit Score — Here&#039;s How to Pick the Best</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/rebuild-your-credit-fast-with-the-opensky-secured-visa-credit-card">Rebuild Your Credit Fast With the OpenSky Secured Visa Credit Card</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/usaa-secured-card-platinum-mastercard-review">USAA Secured Card Platinum Visa Review</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/a-card-that-works-hard-for-those-with-average-credit-capital-one-platinum-credit-card">A Card That Works Hard for Those with Average Credit: Capital One&amp;reg; Platinum Credit Card</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Credit Cards building credit credit card reviews excent secured credit card Fri, 08 Jul 2016 01:35:44 +0000 Christina Majaski 1698397 at http://www.wisebread.com 5 Moves to Make If Your Loan Gets Denied http://www.wisebread.com/5-moves-to-make-if-your-loan-gets-denied <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-moves-to-make-if-your-loan-gets-denied" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/loan_application_rejected_000011809531.jpg" alt="Learning moves to make if your loan gets denied" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You needed an auto loan to finance that new convertible. Or maybe you applied for a mortgage loan to buy your dream home. Whatever type of loan you needed, the answer was the same: A big &quot;no&quot; from your lender.</p> <p>Lenders reject loan applications for a variety of reasons, but two stand out: Borrowers either have a low credit score, or they're already paying off too much debt each month.</p> <p>Fortunately, you can take simple steps to strengthen your finances and turn that loan rejection into an approval. Here are five moves to make after your loan gets rejected to qualify for that financing:</p> <h2>1. Order Your Credit Score</h2> <p>Your FICO credit scores are key when you're applying for a loan. You have three of them, one each generated by the national credit bureaus of TransUnion, Experian, and Equifax. These scores tell lenders how well you've managed your credit in the past. If you have a history of paying your bills late, running up credit card debt, and missing payments altogether, your FICO scores will be weak. Lenders consider a FICO score of 740 or higher to be a strong one. But if your score is too low &mdash; say, under 640 &mdash; you'll struggle to qualify for loans. And when you do qualify for a loan, you'll have to pay a higher interest rate.</p> <p>Before you re-apply for a loan after a rejection, order at least one of your FICO credit scores. Lenders are also required to provide you with a copy of your score if that&rsquo;s the reason you were denied the loan.</p> <h2>2. Order Your Credit Reports</h2> <p>You should also order all three of your credit reports, maintained by each of the credit bureaus. These reports list your personal information and detail your history of managing credit. They show how much you owe on credit cards and other loans, and any missed or late payments from the last seven years. They'll also list any negative judgments, such as bankruptcies or foreclosures that are up to seven or 10 years old, respectively. You can order each of your three credit reports once a year for free at AnnualCreditReport.com.</p> <p>Once you receive your reports, check them for mistakes. A single mistake on a credit report can send your credit score tumbling. If your report lists a missed car payment that you know you made on time, correct the error by contacting the offending credit bureau through email or by phone. Correcting an error can provide a quick boost to your credit score. Make sure, though, that you can provide documentation, such as a credit card statement or bank account record, proving that you actually did pay the &quot;missed&quot; payment on time.</p> <h2>3. Pay All Your Bills on Time</h2> <p>The best way to boost a weak credit score is to start a new history of paying all your bills on time. Your bill-payment history accounts for 35% of your credit score, according to <a href="http://myfico.7eer.net/c/27771/93942/2185">myFICO.com</a>. Paying your bills on time will cause your score to rise. But this takes patience. Depending on how weak your score is, it might take you several months, or even more than a year, to boost your score to a level acceptable to lenders.</p> <h2>4. Reduce Your Monthly Debt</h2> <p>Lenders often reject loans when borrowers' debt-to-income ratios are too high. In general, lenders want your total monthly debts &mdash; including the estimated amount you'll be paying each month for your new loan &mdash; to equal no more than 43% of your gross monthly income. If your debt-to-income ratio is higher than this, you'll greatly increase the odds of receiving a rejection on your loan application.</p> <p>The easiest way to improve a debt-to-income ratio that is too high is to pay off as much of your debts as possible. Usually, this means reducing credit card debt. Paying off the amount you owe on your cards will slowly but steadily cause your debt-to-income ratio to fall.</p> <h2>5. Keep Paid-Off Credit Cards Open</h2> <p>Say you pay off a credit card entirely and you no longer plan on using it. You should close that account, right? No. Never close unused credit cards. Cards with zero balances can actually help your credit score.</p> <p>That's because lenders look at something called your <a href="http://www.wisebread.com/this-one-ratio-is-the-key-to-a-good-credit-score?utm_source=wisebread&amp;utm_medium=internal&amp;utm_campaign=article">credit-utilization ratio</a>. This ratio looks at how much of your available credit you are using. The lower this ratio, the better. Closing an unused credit card will instantly hurt this ratio.</p> <p>Say you have four credit cards, each with a credit limit of $4,000 for an available credit of $16,000. Say, too, that you have $5,000 worth of credit card debt. That comes out to a credit-utilization ratio of about 31%, $5,000 divided into $16,000. But say you close one of your four cards. That reduces your available credit to $12,000. Your debt-utilization ratio immediately jumps to about 42%, $5,000 divided into $12,000.</p> <p>It's okay to keep a paid-off credit card in your wallet. Just make sure that you don't run up another hefty balance on it.</p> <p><em>Have you ever had a loan app denied? What did you do after?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/5-moves-to-make-if-your-loan-gets-denied">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/15-surprising-ways-bad-credit-can-hurt-you">15 Surprising Ways Bad Credit Can Hurt You</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-reasons-building-credit-in-college-helps-you-win-at-life">5 Reasons Building Credit in College Helps You Win at Life</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/debunking-8-common-credit-score-myths">Debunking 8 Common Credit Score Myths</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-7-debt-payoffs-that-boost-your-credit-score-the-most">The 7 Debt Payoffs That Boost Your Credit Score the Most</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/heres-how-often-your-credit-score-gets-calculated">Here&#039;s How Often Your Credit Score Gets Calculated</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance applications bad credit building credit credit score debt denied fico line of credit loans rejection Tue, 17 May 2016 09:00:04 +0000 Dan Rafter 1709596 at http://www.wisebread.com Start Building Your Credit History with the Citi Secured Mastercard http://www.wisebread.com/start-building-your-credit-history-with-the-citi-secured-mastercard <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/start-building-your-credit-history-with-the-citi-secured-mastercard" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock_000085291937_Large.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you are just starting out and haven&rsquo;t yet established enough of a credit history, you may find it difficult getting approved for most traditional credit cards (as well as other loans). In many cases, you&rsquo;ll need a secured card like the <a href="http://ct.wisebread.com/click.php?pg=191&amp;pid=121&amp;pp=0&amp;uv=sname">Citi&reg; Secured Mastercard&reg;</a>, from our partner Citi, to build a positive credit history, in order to increase your credit score. The <a href="http://www.wisebread.com/what-are-secured-credit-cards?ref=review">world of secured credit cards</a>, however, can be confusing and in many cases, expensive. But, if you&rsquo;re looking for a secured card to help you start <a href="http://www.wisebread.com/best-credit-cards-for-bad-credit?ref=review">building your credit score</a>, this card could be your ticket to good credit. (See also: <a href="http://www.wisebread.com/the-5-best-secured-credit-cards?ref=review">Best Secured Credit Cards for Building Credit</a>)</p> <h2>How This Card Works</h2> <p>This card requires a security deposit of $200 to $2,500, which is held in a non-interest bearing Collateral Holding Account for 18 months. Once you are approved for the card and you have made your security deposit, you receive a card with a credit limit in the amount of your security deposit. Your account activity is reported to the major credit bureaus and after managing your account responsibly can lead to a better credit rating. (See also: <a href="http://www.wisebread.com/5-best-secured-cards-with-no-annual-fee?ref=review">Secured Cards without Annual Fees</a>)</p> <h2>Costs</h2> <ul> <li>$0 Annual Fee</li> <li>23.49% variable APR for purchases and balance transfers</li> <li>3% Balance Transfer Fee ($5 minimum)</li> <li>3% Foreign Transaction Fee</li> </ul> <p><a target="_blank" href=" http://ct.wisebread.com/click.php?pg=191&amp;pid=121&amp;pp=0&amp;uv=sbutton2&amp;fot=1336" rel="nofollow"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/apply-now.png" alt="" class="img-exempt" width="154" height="50" /></a></p> <h2>Considerations</h2> <p><strong>No interest on the deposit</strong>. Your deposit is held for at least 18 months, but you won&rsquo;t earn any interest on it. There are other secured credit cards which allow you to earn interest on your security deposit while it is being held. Although it may not end up making you rich, you do end up with a little extra with secured cards that earn interest on your security deposit. (See also: <a href="http://www.wisebread.com/5-best-secured-cards-that-pay-interest-on-your-deposit?ref=review">Secured Cards that Pay Interest on the Security Deposit</a>)</p> <p><strong>High APR</strong>. Although it&rsquo;s typical for a secured credit card to carry a higher than average interest rate, the APR is among the highest. If you carry a balance from month to month rather than pay in full each month, your interest is going to add up and become costly. If you typically carry a balance, it&rsquo;s best to select a <a href="http://www.wisebread.com/5-best-secured-credit-cards-with-low-aprs?ref=review">secured credit card with a low APR</a><a href="http://www.wisebread.com/first-choice-bank-primor-secured-visa-gold-card-review?utm_source=wisebread&amp;utm_medium=seealso&amp;utm_campaign=review">.</a></p> <p><strong>Foreign transaction fee</strong>. The 3% foreign transaction fee is only a problem if you plan to use your card for foreign transactions. If you frequently travel outside of the U.S., this fee can become expensive. You can save a significant amount of money with a secured card that charges a lower or no foreign transaction fee. (See also: <a href="http://www.wisebread.com/5-best-secured-cards-with-low-or-no-foreign-transaction-fees?ref=review">Secured Cards with No Foreign Transaction Fee</a>)</p> <h2>Who This Card Is Best For</h2> <p>This card is best for those who are in the process of building a positive credit rating, are diligent in paying balances in full each month, and will use the card primarily for domestic purchases. There are limited fees, and you can start out with a deposit as low as $200. Citi is also an established credit card issuer and cardholders will be able to access their customer service and other benefits.</p> <p style="text-align: center;"><strong><a href="http://ct.wisebread.com/click.php?pg=191&amp;pid=121&amp;pp=0&amp;uv=send">Click here to learn more and apply for the Citi&reg; Secured Mastercard&reg; today!</a></strong></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/christina-majaski">Christina Majaski</a> of <a href="http://www.wisebread.com/start-building-your-credit-history-with-the-citi-secured-mastercard">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-are-secured-credit-cards">What Are Secured Credit Cards?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-things-you-need-to-know-about-the-new-costco-credit-card">6 Things You Need to Know About the New Costco Credit Card</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/citi-credit-card-offers-applications-reviews">Citi Credit Card Offers: Applications &amp; Reviews</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-citi-diamond-preferred-card-0-interest-with-benefits">Get a Break From Interest for 21 Months: The Citi Diamond Preferred Card</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/rebuild-your-credit-fast-with-the-opensky-secured-visa-credit-card">Rebuild Your Credit Fast With the OpenSky Secured Visa Credit Card</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Credit Cards building credit Citi credit card reviews secured credit cards Thu, 12 May 2016 10:30:07 +0000 Christina Majaski 1694760 at http://www.wisebread.com What You Need to Know About Adding Another User to Your Credit Card http://www.wisebread.com/what-you-need-to-know-about-adding-another-user-to-your-credit-card <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/what-you-need-to-know-about-adding-another-user-to-your-credit-card" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/couple_credit_card_000037342234.jpg" alt="Couple learning now adding an authorized user will affect credit" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Adding an authorized user to your credit card account can help establish or improve their credit, but how will it affect you? Fortunately, simply adding a new user to your credit card will not negatively affect your credit score. However, there are a number of factors you should consider before you add a new user to any of your credit card accounts.</p> <h2>How It Works</h2> <p>Once you request that an authorized user be added to your credit card account, they will receive a card with their name on it, which has the same buying power as the primary cardholder's credit card. The credit card account will appear on both users' credit reports.</p> <p>Adding an authorized user to your account is not a decision that should be taken lightly. The authorized user will have access to your credit line, whether the full amount or a set limit (depending on your card). The primary cardholder is the only one responsible for making payments on time every month.</p> <h2>How the Credit Reports Are Affected</h2> <p>Any joint accounts and shared credit cards will appear on all users' credit reports. If anyone on the account makes a bad move, you will all see the negative effects on your credit reports. On the other hand, if the payments are made on time, the balance remains low, and the account remains in good standing, it can help boost everyone&rsquo;s credit.</p> <h2>They&rsquo;ll Receive Their Very Own Card</h2> <p>Once you add an authorized user to your credit card, they will receive their own card (in their name) that they can use at will. Remember, they can make purchases at any time, but they are not directly responsible for making payments on the card, so you'll want to be very careful in choosing whom to add as an authorized user. If they rack up debt, it can impact your credit score and credit worthiness.</p> <h2>What if They Have Bad Credit?</h2> <p>If the new authorized user has bad credit, it won't affect your credit score. Their poor credit history will not be reflected on your credit report and will not affect your credit score.</p> <p>On the other hand, you should be wary of adding anyone to your account that has already established that they can't handle credit. If they rack up large debts or exceed the credit limit, it can affect your credit history and drastically impact your credit score. If they pile on debt that they &mdash; and ultimately you &mdash; are unable to pay, any late payments will appear on your credit report and can hurt you in the long run.</p> <h2>You Can Control the Card, But Not the User</h2> <p>Once you add a user, you will still maintain control of the account. You can set up alerts for activity and see exactly what purchases were made. You can also remove them from the account later, if needed. However, if you give them their own card in their name, you have no control over how and when they spend the credit line.</p> <p>If you are concerned about how they will be using the card, but want to help them raise their score, you may consider adding them to the account but never actually giving them the card. They will still receive the benefits, but you won't take on any additional risk, so everyone wins.</p> <h2>Removing an Authorized User</h2> <p>If you later decide to remove the authorized user from the account, you can simply call the credit card company and request it. Typically, the change will be reflected on their credit report approximately 30 days later.</p> <h2>Personal Relationship Effects</h2> <p>Money issues have caused problems in countless relationships. Once you add someone as an authorized user, you are welcoming financial discussions and a link in your credit reports. Keep in mind that if things go sour in the relationship, the new user can still use their card and rack up the balance, which you will solely be responsible for repaying.</p> <h2>Is It a Good Idea?</h2> <p>The authorized user strategy can help establish new credit or <a href="http://www.wisebread.com/how-to-use-credit-cards-to-improve-your-credit-score">rebuild bad credit</a>. So, it may be a good idea to add a child or spouse as an authorized user, particularly if they don't have any credit history of their own.</p> <p>If your goal is to help increase the authorized user's credit score, it can be beneficial to strategically choose the right account to add them to. Your best bet is to add them to a credit card account that is old, has a low balance, has a positive payment history, and is in good standing. By doing this, you can ensure the most positive effect on their credit history, average age of credit, and utilization rate. This can have a huge effect on their credit score, helping to increase it in no time.</p> <p><em>Do you have an experience adding an authorized user to your credit card account? Please share your thoughts in the comments!</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/andrea-cannon">Andrea Cannon</a> of <a href="http://www.wisebread.com/what-you-need-to-know-about-adding-another-user-to-your-credit-card">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-rebuild-your-credit-in-8-simple-steps">How to Rebuild Your Credit in 8 Simple Steps</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-credit-cards-to-improve-your-credit-score">How to Use Credit Cards to Improve Your Credit Score</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-reasons-your-credit-card-application-was-denied-and-what-you-can-do-about-it">11 Reasons Your Credit Card Application Was Denied — And What You Can Do About It</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/building-a-credit-history">Building a Credit History</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/surprising-things-that-can-kill-your-credit">Surprising Things That Can Kill Your Credit</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Credit Cards authorized users building credit credit reports credit score Mon, 18 Apr 2016 10:00:05 +0000 Andrea Cannon 1689024 at http://www.wisebread.com You've Defaulted on Your Loan. Now What? http://www.wisebread.com/youve-defaulted-on-your-loan-now-what <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/youve-defaulted-on-your-loan-now-what" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_stressed_bills_000080184545.jpg" alt="Woman figuring out what to do after loan defaults" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You never planned on missing those mortgage payments or falling behind on your student loan obligations. But maybe you lost a job, or maybe you didn't land that higher-paying position you imagined when you first took out your loans.</p> <p>Now, you're in default &mdash; behind on your payments. You've received warning letters from your creditors, and collection agencies are leaving messages on your voicemail. What can you do?</p> <p>There are steps you can take to dig your way out of default. None of them are pleasant, but if you're willing to work, you can stop the calls from collection agencies, pay back what you owe, and move on to better financial times.</p> <h2>When Are You in Default?</h2> <p>There's a difference between being late on your loan payments and in default. Official default varies according to loan. You're considered in <a href="https://www.consumer.ftc.gov/articles/0194-trouble-paying-your-mortgage">default on your mortgage</a> payment if you're more than 30 days late. You're not officially in <a href="https://studentaid.ed.gov/sa/repay-loans/default">default on your student loan</a> payments until you're 270 days late.</p> <p>Being in default can be costly. Your lender will start charging late fees, and your credit score will plummet by at least 100 points.</p> <p>If you miss too many mortgage payments, your lender will eventually begin the foreclosure process, which could end up with you losing your home. If you go into default on your federal student loans, the consequences can be equally severe: The government could begin garnishing your wages, automatically deducting up to 15% of your paycheck to recover what you owe. The government can even <em>sue </em>you for what you owe. You can't even discharge your federal student loan debt through bankruptcy.</p> <p>And no matter what type of loan on which you default, you'll face additional fees charged by the collection agencies tasked with forcing you to pay up.</p> <h2>What Can You Do?</h2> <p>It's obvious, then, that being in default is bad news. But what can you do to alleviate your financial suffering if you've already fallen into default?</p> <h3>Talk to Your Creditors</h3> <p>The first step, no matter what debt you are facing, is to call your lender. Yes, that's not an easy call to make. But your lender might offer solutions to your debt problems. Your mortgage lender might offer to lower your interest rate to make your monthly payments more affordable. It might even offer a modification, in which it changes the terms of your loan so that you end up with a payment that fits more comfortably in your budget.</p> <p>The lender behind your student loan might offer you a debt-consolidation program, in which all of your loans are consolidated into one monthly payment that you can afford.</p> <h3>Don't Ignore It</h3> <p>If you don't call, and if you try to ignore your debt, the problem will only grow. Don't expect your creditors to forget about you. They'll simply keep adding to the fees they're charging you. At the same time, your credit score will continue to drop.</p> <p>If you're in default on a federal student loan, you might qualify for the Federal Loan Rehabilitation Program. This is a one-time chance to remove the default from your federal student loans from your credit reports and to start making your payments over again with a clean slate.</p> <p>Call your student-loan lender to request this program. Once you are in rehabilitation, if you make nine on-time payments within a 10-month period on your federal student loans, your default status will disappear from your credit reports. This will be a big help to your credit score. You can then work with your lender to select the right repayment plan for you, hopefully leaving you with a monthly payment that you can afford.</p> <p>This option isn't available on other loans on which you've defaulted, of course. And if you can't work out a repayment plan with these lenders, then you'll have to face the consequences. If you default on your mortgage, this means potentially losing your home. If you default on your auto loan, your creditors can repossess your auto loan.</p> <h2>Rebuild Your Credit</h2> <p>After these consequences happen? Your next move is to rehabilitate your credit score. This is an important step: You'll need a strong credit score to qualify for credit cards and future loans. Lenders today consider a FICO credit score of 740 or higher to be a good one. If your score is too low, lenders will either deny your requests for loans or charge you high interest rates.</p> <p>Repairing damaged credit isn't complicated, but it does take time. Make all of our monthly payments on time. Pay down your credit card debt &mdash; but don't close credit card accounts that you've paid off and no longer use. Doing so reduces the amount of credit available to you and will cause your score to fall. (See also: <a href="http://www.wisebread.com/what-are-secured-credit-cards?ref=seealso">How Secured Credit Cards Can Rebuild Your Credit</a>)</p> <p>You'll have to be patient here. It can take months, a year, or longer of paying your bills on time and slashing your credit card debt to repair your credit score. The effort, though, is worth it. It's not until your credit score is a healthy one that you can truly say that you've put your loan default behind you.</p> <p><em>Have you ever defaulted on a loan? How'd you bounce back?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/youve-defaulted-on-your-loan-now-what">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-4"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-you-need-to-know-the-difference-between-secured-and-unsecured-debts">Why You Need to Know the Difference Between Secured and Unsecured Debts</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-valuable-rights-you-might-lose-when-you-refinance-student-loans">8 Valuable Rights You Might Lose When You Refinance Student Loans</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-monthly-bills-that-vary-based-on-your-credit-behavior">5 Monthly Bills That Vary Based on Your Credit Behavior</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/pay-these-6-bills-first-when-money-is-tight">Pay These 6 Bills First When Money Is Tight</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-ways-student-loan-debt-can-affect-your-mortgage-application">3 Ways Student Loan Debt Can Affect Your Mortgage Application</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance building credit credit score default late payments mortgages owing money student loans Wed, 06 Apr 2016 10:00:12 +0000 Dan Rafter 1683676 at http://www.wisebread.com Rebuilding Credit: Military Personnel Should Consider the USAA Classic American Express Credit Card http://www.wisebread.com/rebuilding-credit-military-personnel-should-consider-the-usaa-classic-american-express-credit-card <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/rebuilding-credit-military-personnel-should-consider-the-usaa-classic-american-express-credit-card" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/000024035090.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p><em><strong>Editor's note: This offer is currently unavailable. For a similar card, check out the <a href="http://www.wisebread.com/usaa-secured-card-platinum-mastercard-review?ref=review">USAA Secured Card Visa Platinum</a>.</strong></em></p> <p>If you have had credit problems in the past or are just starting out, it can be difficult qualifying for a credit card that helps you build a good credit rating. Most of the time, consumers have no choice but <a href="http://www.wisebread.com/a-secured-credit-card-can-repair-your-credit-score-heres-how-to-pick-the-best?ref=review">secured credit cards</a>, which require tying up funds in security deposits while you rebuild your credit. (See our <a href="http://www.wisebread.com/the-5-best-secured-credit-cards?ref=review">favorite secured credit cards for rebuilding credit</a>.)</p> <p>However, there are also credit cards, such as the USAA Classic American Express&reg;, for those with less than stellar credit that are unsecured and designed for consumers in the process of building or rebuilding credit. Military personnel and family members whose credit rating falls within the &quot;average&quot; category, and prefer an unsecured card over secured for building credit, should consider the USAA Classic American Express. (See also: <a href="http://www.wisebread.com/the-5-best-credit-cards-for-people-with-fairaverage-credit?ref=review">Best Credit Cards for Fair/Average Credit</a>)</p> <h2>Why We Like This Card</h2> <ul> <li>Special military benefits</li> <li>No security deposit required</li> </ul> <h2>How This Card Works</h2> <p>Applicants must be a USAA member, open to active or retired military personnel and certain family members. This is a basic card with no rewards, but it offers perks and benefits for military personnel.&nbsp;</p> <h2>Other Benefits</h2> <p><strong>Extended warranty.</strong> This card includes extended warranty for purchases made with the card that extends the manufacturer or U.S. store brand warranty for up to one year.</p> <p><strong>Military benefits.</strong> You can receive the same military benefits that USAA offers all cardholders, which include special opportunities to qualify for a 4% APR during deployment, PCS, or active duty. You can also qualify for a rebate of finance charges accrued while you are serving in a qualified military campaign.</p> <!--<p><a href="http://ct.wisebread.com/click.php?pg=125&amp;pid=84&amp;pp=0&amp;uv=sbutton2&amp;fot=1280" target="_blank"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/apply-now.png" alt="" width="154" height="50" /></a></p>--><!--<p><a href="http://ct.wisebread.com/click.php?pg=125&amp;pid=84&amp;pp=0&amp;uv=sbutton2&amp;fot=1280" target="_blank"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/apply-now.png" alt="" width="154" height="50" /></a></p>--><h2>Pros</h2> <p><strong>Rebuild credit without a security deposit.</strong> An unsecured card means there is no security deposit required. You receive a credit card with a line of credit, and when you use your card and make your payments on time, you can build a good credit rating.</p> <p><strong>For average credit. </strong>Average credit ratings often start in the low 600s, often a result of a small credit file or minor credit problems in the past. An average score isn't considered &quot;poor&quot; credit, which is generally in the 500s to low 600s, but approval for unsecured credit cards can be just as difficult.</p> <p><strong>Special military benefits.</strong> Benefits such as special rates specific to your military service can especially come in handy and help you save money while you are repairing your credit.</p> <p><strong>No foreign transaction fee. </strong>Cards without foreign transaction fees are often reserved for higher credit ratings and carry larger annual fees. Fortunately, this card does not charge a foreign transaction fee, which makes it ideal for people with average credit ratings who plan on making many purchases outside of the U.S.</p> <h2>Cons</h2> <p><strong>High APR. </strong>The APR is among the highest for credit cards, with even a handful of <a href="http://www.wisebread.com/5-best-secured-credit-cards-with-low-aprs?ref=review">secured credit cards offering a lower APR</a>. This is less of a disadvantage if you pay your balance in full each month rather than carrying a balance from month to month, because you can avoid paying interest on your purchases. If, however, you consistently carry balances, you should use a card with a lower APR.</p> <p><strong>No rewards program or extra perks.</strong> Although it isn't expected, this is a pretty basic card and does not include any rewards programs or extra card perks. The entire purpose is to provide an opportunity to rebuild or build credit with an unsecured credit card. (See also: <a href="http://www.wisebread.com/the-5-best-credit-cards-for-people-with-fairaverage-credit?ref=review">Best Credit Cards for Fair/Average Credit</a>)</p> <h2>Who This Card Is Best For</h2> <p>The USAA Classic American Express is best for military personnel and qualifying family members who are in the process of rebuilding or establishing a good credit rating. It is one of only a few unsecured credit cards available for people who have &quot;average&quot; credit ratings and might not qualify for other credit cards. Because of the APR, the card is best for those who are diligent in paying balances in full each month.</p> <!--<p style="text-align: center;"><a href="http://ct.wisebread.com/click.php?pg=125&amp;pid=84&amp;pp=0&amp;uv=send&amp;fot=1280"><strong>Click here to apply for the USAA Classic American Express&reg; Credit Card today!</strong></a></p> <p style="text-align: center;"><img src="http://www.imgsynergy.com/191x120/usaa-classic-amex-062415.png" class="img-exempt" alt="" width="191" border="0" height="122" /><br /> <a href="http://ct.wisebread.com/click.php?pg=125&amp;pid=84&amp;pp=0&amp;uv=sbutton1&amp;fot=1280" style="border:none;position:relative; top: 7px;" title="USAA Classic American Express&reg;" alt="USAA Classic American Express&reg;" rel="nofollow" target="_blank"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/apply-now.png" alt="" class="img-exempt" /></a></p>--><!--<p style="text-align: center;"><a href="http://ct.wisebread.com/click.php?pg=125&amp;pid=84&amp;pp=0&amp;uv=send&amp;fot=1280"><strong>Click here to apply for the USAA Classic American Express&reg; Credit Card today!</strong></a></p> <p style="text-align: center;"><img src="http://www.imgsynergy.com/191x120/usaa-classic-amex-062415.png" class="img-exempt" alt="" width="191" border="0" height="122" /><br /> <a href="http://ct.wisebread.com/click.php?pg=125&amp;pid=84&amp;pp=0&amp;uv=sbutton1&amp;fot=1280" style="border:none;position:relative; top: 7px;" title="USAA Classic American Express&reg;" alt="USAA Classic American Express&reg;" rel="nofollow" target="_blank"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/apply-now.png" alt="" class="img-exempt" /></a></p>--><br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/christina-majaski">Christina Majaski</a> of <a href="http://www.wisebread.com/rebuilding-credit-military-personnel-should-consider-the-usaa-classic-american-express-credit-card">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/rebuild-your-credit-fast-with-the-opensky-secured-visa-credit-card">Rebuild Your Credit Fast With the OpenSky Secured Visa Credit Card</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/usaa-secured-card-platinum-mastercard-review">USAA Secured Card Platinum Visa Review</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/suntrust-secured-credit-card-with-cash-rewards-review">SunTrust Secured Credit Card with Cash Rewards Review</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/first-choice-bank-primor-secured-visa-gold-card-review">primor® Secured Visa® Gold Card Review</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/skypass-visa-secured-credit-card-review">SKYPASS Visa Secured Credit Card Review</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Credit Cards building credit credit card reviews military Fri, 13 Nov 2015 19:58:59 +0000 Christina Majaski 1568658 at http://www.wisebread.com A Card That Works Hard for Those with Average Credit: Capital One&reg; Platinum Credit Card http://www.wisebread.com/a-card-that-works-hard-for-those-with-average-credit-capital-one-platinum-credit-card <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/a-card-that-works-hard-for-those-with-average-credit-capital-one-platinum-credit-card" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/000073400557.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you have had credit problems in the past or are just starting out building your credit history, the credit card options available are typically <a href="http://www.wisebread.com/a-secured-credit-card-can-repair-your-credit-score-heres-how-to-pick-the-best?ref=review">secured credit cards</a>. Capital One, however, offers the <a href="http://ct.wisebread.com/click.php?pg=84&amp;pid=25&amp;pp=0&amp;uv=sname1&amp;fot=1323">Capital One&reg; Platinum Credit Card</a>, designed for those who fall within the &quot;average&quot; credit rating. This rating can range from 630 to 689, and often those with lower credit scores find themselves qualified for the card.</p> <p>This card offers those with average credit an alternative to secured cards that sometimes come with high fees as well as a security deposit requirement. This is a simple card with nearly no fees. It also comes with a number of card benefits, travel benefits, and credit management tools for building and maintaining a healthy credit score. (See also: <a href="http://www.wisebread.com/the-5-best-credit-cards-for-people-with-fairaverage-credit?ref=review">Best Credit Cards for Average/Fair Credit</a>)</p> <h2>Why We Like This Card</h2> <ul> <li>No annual fee, balance transfer fee, or foreign transaction fee.</li> <li>Credit limit increase after five months of responsible account management.</li> </ul> <h2>How This Card Works</h2> <p>This card is a basic credit card with no rewards feature, but it has no annual fee, no balance transfer fee, and no foreign transaction fee. You may also qualify for a credit limit increase after you make your first 5 payments on time. However, with such a high APR even without a balance transfer fee, it wouldn't make sense to use this card to transfer a balance unless you currently have a balance on a card with an even higher APR. (See also: <a href="http://www.wisebread.com/5-best-credit-cards-with-no-balance-transfer-fees?ref=review">Credit Cards with no Balance Transfer Fees</a>)</p> <h2>Other Benefits</h2> <p><strong>Platinum MasterCard benefits. </strong>Includes Platinum MasterCard benefits such as extended warranty for additional protection on purchases made with the card, auto rental insurance, travel accident insurance, 24-hour travel assistance services, and price protection for receiving a reimbursement of the price difference if you find your purchase for a lower price within 60 days.</p> <h2>Costs</h2> <ul> <li>$0 Annual Fee</li> <li>24.99% variable APR&nbsp;</li> <li>$0 Balance Transfer Fee</li> <li>$0 Foreign Transaction Fee</li> </ul> <p><a href="http://ct.wisebread.com/click.php?pg=84&amp;pid=25&amp;pp=0&amp;uv=sbutton2&amp;fot=1323"><img border="0" class="img-exempt" alt="" src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/apply-now.png" /></a></p> <h2>Considerations</h2> <p><strong>High APR.</strong>&nbsp;You can avoid paying large amounts of interest on your purchases if you are diligent in paying your balance in full each month. However, if you frequently carry a balance from month to month, this APR is going to become expensive. If you typically carry your balances from month to month, you may want to instead consider one of the <a href="http://www.wisebread.com/5-best-secured-credit-cards-with-low-aprs?ref=review">secured credit cards with lower APRs</a>, designed specifically for average or poor credit ratings.</p> <h2>Who This Card Is Best For</h2> <p>The Capital One Platinum MasterCard is best for those who have had credit problems in the past, are just starting out, or have an &quot;average&quot; credit rating, but prefer an unsecured credit card over a secured card. It is also ideal for those who need to transfer balances from a higher APR credit card, or because there is no foreign transaction fee, for those who frequently travel outside of the United States. (See also: <a href="http://www.wisebread.com/the-5-best-secured-credit-cards?ref=review">Best Secured Credit Cards for Average or Poor Credit</a>)</p> <p style="text-align: center;"><a href="http://ct.wisebread.com/click.php?pg=84&amp;pid=25&amp;pp=0&amp;uv=send&amp;fot=1323"><strong>Click here to learn more and apply for the Capital One&reg; Platinum Credit Card today!</strong></a></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/christina-majaski">Christina Majaski</a> of <a href="http://www.wisebread.com/a-card-that-works-hard-for-those-with-average-credit-capital-one-platinum-credit-card">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/capital-one-secured-mastercard-the-best-option-for-repairing-your-credit">Capital One® Secured Mastercard®: The Best Option for Repairing Your Credit</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/capital-one-venture-rewards-card-review">Travel Rewards Don&#039;t Get Easier Than This: Capital One® Venture® Rewards Credit Card</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/rebuild-your-credit-fast-with-the-opensky-secured-visa-credit-card">Rebuild Your Credit Fast With the OpenSky Secured Visa Credit Card</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/usaa-secured-card-platinum-mastercard-review">USAA Secured Card Platinum Visa Review</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/suntrust-secured-credit-card-with-cash-rewards-review">SunTrust Secured Credit Card with Cash Rewards Review</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Credit Cards average credit building credit Capital One credit card reviews Thu, 17 Sep 2015 19:07:17 +0000 Christina Majaski 1545256 at http://www.wisebread.com SKYPASS Visa Secured Credit Card Review http://www.wisebread.com/skypass-visa-secured-credit-card-review <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/skypass-visa-secured-credit-card-review" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/000066184035.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Korean Air is the largest airline in South Korea, providing flights to over 130 cities. Its SKYPASS rewards program allows frequent flyers an opportunity to earn valuable miles which can be used for a wide range of flights and benefits. The SKYPASS Visa Secured Credit Card goes one step further and not only allows you to earn miles from the purchases made with the card, but also gives you the chance to build or <a href="http://www.wisebread.com/a-secured-credit-card-can-repair-your-credit-score-heres-how-to-pick-the-best?ref=review">rebuild your credit</a> rating with a secured credit card. (See <a href="http://www.wisebread.com/the-5-best-secured-credit-cards?ref=review">our picks for the best secured cards</a> available.)</p> <p>If you frequently fly with Korean Air or are a fan of the SKYPASS program, and you are in the process of either establishing or reestablishing your credit history, the SKYPASS Visa Secured Credit Card is a card you should consider.</p> <h2>How This Card Works</h2> <p>When you are approved for the card, you must make a deposit of $300 to $5,000, which is held in an account that earns interest. You receive your card with a credit limit in the amount of the security deposit. Your account activity is reported to the credit bureaus, which helps to establish a positive credit rating when you manage your account responsibly. After 12 months, your account is evaluated and you may qualify for an unsecured credit card.</p> <p>You earn one mile for each dollar spent with the card, with no cap on the number of miles you can earn. Miles expire in ten years if unredeemed.</p> <p>You can redeem miles for flights and upgrades with Korean Air. You can also redeem for access to airport lounges, as well as for award flights and upgrades with SkyTeam Alliance Airlines, which includes airlines such as Delta, Air France, and AeroMexico. There are a number of other ways to redeem SKYPASS miles, including for hotel stays and rental cars.</p> <h2>Costs</h2> <ul> <li>$50 Annual Fee</li> <li>17.24% Variable APR</li> <li>3% Foreign Transaction Fee</li> </ul> <h2>Pros</h2> <p><strong>Rewards program.</strong> Most secured credit cards do not include rewards programs for earning points or miles. You can earn one mile for every dollar spent, without worrying about specific purchase categories or categories that change every quarter.&nbsp;</p> <p><strong>Deposit earns interest.</strong> The security deposit that is held while you are an account holder, earns interest, allowing you to earn a little extra while you are building or rebuilding your credit rating. Not all secured credit cards allow you to earn interest while the deposit is held, and in those cases you receive exactly what you started with when you close the account &mdash; less any outstanding balances or fees. (See also: <a href="http://www.wisebread.com/5-best-secured-cards-that-pay-interest-on-your-deposit?ref=review">Secured Cards that Pay Interest on Your Deposit</a>)</p> <h2>Cons</h2> <p><strong>Annual fee. </strong>The annual fee can be costly if you aren't able to use your miles or take advantage of the bonuses. (See also: <a href="http://www.wisebread.com/5-best-secured-cards-with-no-annual-fee?ref=review">Secured Cards Without Annual Fees</a>)</p> <p><strong>Foreign transaction fee.</strong> If you use your card for foreign transactions, you are going to lose any value you might have earned from the rewards program. For those who frequently travel abroad or make foreign purchases, <a href="http://www.wisebread.com/5-best-secured-cards-with-low-or-no-foreign-transaction-fees?ref=review">secured cards without foreign transaction fees</a> are better options.</p> <h2>Who This Card Is Best For</h2> <p>The SKYPASS Visa Secured Credit Card is best for those who are just starting out or are in the process of rebuilding credit, and frequently travel with Korean Air. It is important that you are able to take advantage of the bonus opportunities for the fees and expenses attached the card to be worth it. If you are not specifically a SKYPASS fan, there are more affordable secured credit cards available with no foreign transaction fees, lower annual fees, and a lower APR.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/christina-majaski">Christina Majaski</a> of <a href="http://www.wisebread.com/skypass-visa-secured-credit-card-review">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-5"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/lifemiles-visa-secured-credit-card-earn-miles-as-you-rebuild-your-credit">LifeMiles Visa Secured Credit Card: Earn Miles as You Rebuild Your Credit</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/lanpass-visa-secured-credit-card-review">LANPASS Visa Secured Credit Card Review</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/for-riders-only-harley-davidson-visa-secured-card">For Riders Only: Harley-Davidson Visa Secured Card</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/aeromexico-visa-secured-card-rebuild-your-credit-while-you-travel">AeroMexico Visa Secured Card: Rebuild Your Credit While You Travel</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/rebuild-your-credit-fast-with-the-opensky-secured-visa-credit-card">Rebuild Your Credit Fast With the OpenSky Secured Visa Credit Card</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Credit Cards Travel building credit credit card reviews korean air secured cards skypass u.s. bank Thu, 17 Sep 2015 04:55:51 +0000 Christina Majaski 1545255 at http://www.wisebread.com Earn Interest and Rebuild Credit: Webster Bank Secured Visa Credit Card http://www.wisebread.com/earn-interest-and-rebuild-credit-webster-bank-secured-visa-credit-card <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/earn-interest-and-rebuild-credit-webster-bank-secured-visa-credit-card" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/000049216544.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you have had credit problems in the past or are just beginning to build your credit rating, <a href="http://www.wisebread.com/a-secured-credit-card-can-repair-your-credit-score-heres-how-to-pick-the-best?ref=review">secured credit cards</a> can be helpful tools. A variety of secured credit cards are offered by a number of financial institutions, all providing different benefits and services, while helping you establish or rebuild your credit. (See also: <a href="http://www.wisebread.com/the-5-best-secured-credit-cards?ref=review">Best Secured Cards for Rebuilding Credit</a>)</p> <p>If you are working on establishing a positive credit rating, the Webster Bank Secured Visa Credit Card is a simple and straightforward option.</p> <h2>How This Card Works</h2> <p>When you are approved for the card, you must open a secured savings account with Webster Bank and make a security deposit in the amount of $300 to $5,000. Your deposit earns interest while it is held in the savings account, and you are issued a credit card with a credit limit in the amount of your security deposit. You can add to your deposit in $100 increments. Your account status is reported to the credit bureaus, and with responsible management of the card account, can result in a positive credit rating. You may also be considered for an unsecured credit card after 12 months.</p> <h2>Costs</h2> <ul> <li>$35 Annual Fee</li> <li>21.99% Variable APR</li> <li>3% Foreign Transaction Fee</li> </ul> <h2>Pros</h2> <p><strong>Security deposit earns interest.</strong> It is required that you open a secured savings account for your security deposit when you are approved for the card. This account, however, allows you to earn interest on the deposit while it is held, which isn&rsquo;t an option with all secured credit cards. This gives you a chance to build your security deposit and receive a little extra if you close your card account in the future. (See also: <a href="http://www.wisebread.com/5-best-secured-cards-that-pay-interest-on-your-deposit?ref=review">Best Secured Cards that Offer Interest on Your Deposit</a>)</p> <p><strong>You may qualify for an unsecured card.</strong> While your activity is reported to the credit bureaus, the account is periodically reviewed. You could qualify for an unsecured credit card after responsible management of your account for 12 months. When you make your payments on time and stay within your credit limit, you are well on your way to establishing a positive credit history.</p> <h2>Cons</h2> <p><strong>Annual fee.</strong> Although annual fees on secured credit cards can be as much as $50 per year, the annual fee of $35 on this card is still among the highest. There are other <a href="http://www.wisebread.com/5-best-secured-cards-with-no-annual-fee?ref=review">secured cards that don't have annual fees</a> at all.</p> <p><strong>High APR.</strong> The APR is among the highest APRs charged by credit cards, even secured cards. You do have a grace period so if you pay your balance in full each month, you can avoid paying interest on your purchases. If, however, you typically carry a balance from month to month, can save money by selecting one of the <a href="http://www.wisebread.com/5-best-secured-credit-cards-with-low-aprs?ref=review">secured cards that offers a lower APR</a>.</p> <p><strong>Foreign transaction fees.</strong> If you plan on using the card for foreign purchases, you will be charged a foreign transaction fee of at least 2%, depending on whether your transaction is made in U.S. Dollars or foreign currency. For travelers, this can be an expensive fee added on to each purchase. There are, however, <a href="http://www.wisebread.com/5-best-secured-cards-with-low-or-no-foreign-transaction-fees?ref=review">secured credit cards which do not charge foreign transaction fees</a>.</p> <h2>Who This Card Is Best For</h2> <p>While there are no extra bells and whistles with the Webster Bank Secured Visa Credit Card, it is still a solid option for those seeking a fairly standard secured credit card for building or <a href="http://www.wisebread.com/what-are-secured-credit-cards?ref=review">rebuilding their credit rating</a>. It is ideal for earning interest on the security deposit, and possibly qualifying for an unsecured card in as soon as 12 months. In order to get the most out of the card, however, it is also best for those who are diligent in paying their balances in full each month, and whose purchases are primarily domestic.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/christina-majaski">Christina Majaski</a> of <a href="http://www.wisebread.com/earn-interest-and-rebuild-credit-webster-bank-secured-visa-credit-card">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-6"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/rebuild-your-credit-fast-with-the-opensky-secured-visa-credit-card">Rebuild Your Credit Fast With the OpenSky Secured Visa Credit Card</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/first-choice-bank-primor-secured-visa-gold-card-review">primor® Secured Visa® Gold Card Review</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/skypass-visa-secured-credit-card-review">SKYPASS Visa Secured Credit Card Review</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/usaa-secured-card-american-express">USAA Secured Card American Express: Military Benefits, Low Fees, and Interest on Your Deposit</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/capital-one-secured-mastercard-the-best-option-for-repairing-your-credit">Capital One® Secured Mastercard®: The Best Option for Repairing Your Credit</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Credit Cards building credit credit card reviews secured cards webster bank Tue, 15 Sep 2015 20:48:48 +0000 Christina Majaski 1545219 at http://www.wisebread.com