Credit Building Tips

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Building Tips


Updated: February 5, 2016

By
Add to Favorites:
Credit Building Tips
July
25

It appears that the majority of people who ever applied for credit card and got denied do not actually get their problem and take wrong steps in the aftermath. Generally, a customer is turned down in his/her request for credit for one big reason - unfavorable credit situating which makes an issuer doubt the profitability potential of the customer.

That's where misunderstanding rests. Unfavorable credit rating comes in two ways - problem (bad) or no credit - and in most cases predetermines a customer's future credit capacities and issuers' loyalty. So, before you decide to have a credit card of your own, make sure you check your credit to know your chances and to take steps to improve them.

Problem credit is not the same as the absence of credit rating - that is very important to remember when looking for and choosing a credit card. There are lots of examples when consumers who are new to credit are more readily approved than those whose credit is damaged due to persistent non-payment and late payment practice.

Feel the difference. A no credit applicant has more chances to become a profitable and loyal customer than a customer with a track of unmanageable debts and tendency to defaults. That's why all major card providers offer special products, credit cards for no credit which are tailored to match qualifying customers' specific needs and help them build a good history.

The same is true to student card offers marketed to young people at high school or college regardless of their no credit status.

As compared to bad credit card deals, student and no credit offers are considerably more lenient concerning their APRs, annual fees and other charges. Some go so far as to offer rewards, such as cash back, air miles and points, including points for paying on time!

All is designed to make credit building fast and enjoyable. If you're a customer with good stable income, permanent job and positive payment records, like, say your duly paid utility and mobile phone bills, but you haven't ever had a credit card, you can try luck at Capital One.

Capital one is a major issuer that caters for different credit rating customers but that is very strict and particular about its future customers. So, if for some reason, they think you're a bad risk your application will not be approved. Credit cards for students are popular for their unlimited cash rewards.

Now, what are your chances in a bad credit situation? You're facing hard times but it would be wrong to say that you're cut off from credit and there's no sense in trying to find your variant. The point is to find the right issuer and prepare to pay some of the highest rates and fees out there on the market.

That's the price for being a bad risk for the issuer and a chance to build (or rebuild to be more exact) your damaged credit history. Such type credit cards are found with credit unions and such banks as Orchard Bank, New Millennium Bank, Applied Bank and sometimes First PREMIER Bank which gives approval only after a close credit check.

The good thing about bad credit cards is their monthly reports to major credit bureaus, credit limit increase services and various credit rebuilding tools.

The last thing you want for your financial standing is another credit denial. So, apply for the right credit card, bad or no, and use it to build a strong credit history.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

By Credit-Land, Posted: May 25, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading
Top 5 Credit Card Offers For Those With Excellent Credit

Top 5 Credit Card Offers For Those With Excellent Credit

By Credit-Land, Posted: May 25, 2017

Do you have excellent credit? If so, banks are actively looking to win you as a new credit card customer by offering some unprecedented deals. Although banks have been more careful about acquiring customers with questionable credit ... Continue reading
Interest Free Credit Cards: Pay No Interest Until 2019

Interest Free Credit Cards: Pay No Interest Until 2019

By Credit-Land, Posted: May 23, 2017

Carrying a balance on a credit card is wasting your money on interest fees. It is easy to avoid interest payments on purchase transactions by paying off the entire card balance by the due date each month. But what to do if you are already ... Continue reading