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The importance of credit cards and their benefits not only varies depending upon the offer on the credit card, but also on the credit rating of the cardholder. Some credit cards are very good for customers with excellent credit, as it helps them maintain their high credit rating while earning savings on their expenses. There are other credit cards which are meant for customers who have a bad credit history. The best credit cards for such customers are those which assist in repairing their credit by improving their credit score or extending a decent credit history for some period.
Hence, the best credit cards in such scenarios are those with low APR. It is expected that those with a bad credit history often have a high outstanding debt. The major obstacle in paying off the debt is the high interest rate. This accumulates onto the principal debt, making it more difficult for the customers to pay down. Low APR credit cards ensure that the customers` debt remains in control, and the interest is not excessively high. This helps them in making payments and reducing the outstanding balance over a period of time, thereby improving their credit score.
Credit cards with rewards are not the best credit cards to assist in repairing credit. This is because they offer discounts such as in shopping malls, which tempt the customer to go for greater expenses. Rather, the best credit cards are those which help reducing the expenditure or the interest. Balance transfer credit cards are the other ideal option for such credit card customers.
The balance transfer credit cards usually provide temporary respite to the credit card customers from the accumulating interests. If a credit card customer`s application for a 0% APR balance transfer credit card with 9 months of promotional period is approved, it means the customer doesn`t have to pay interest on the outstanding balance for 9 months. So, if the debt is 900 dollars, the customer can pay off 100 dollars in a month, to clear the debt before end of promotional period. Comparing this to bad credit, with a credit card interest rate of at least 20%, the credit card customer saves quite a few dollars in terms of interest. One of the best credit cards for card repair ones that offer minimum payment options, which help credit card customers` time their debt payment period, and then stick to the plan to improve finances.