Credit Building Tips

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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

The content is accurate at the time of publication and is subject to change.
Credit Building Tips
July
25
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!