Opening a new Credit Card, Revolving Line of Credit or a Fixed Loan is one of the easiest ways you can rebuild or establish new credit for yourself. Doing so allows you to build up a history of payments on your credit report, which will help you to build up a high credit score.
In this article, we’re going to review some KEY differences between the options that are available to you.
Quick Tip: Also, it’s always a good idea to maintain at least 2 – 3 credit accounts, so that if you ever decide to close one out, your credit score won’t take a big hit because you’ll have some other credit accounts still reporting to the credit bureaus. This will help sustain your credit score!
Below we’ll discuss three popular credit card options that most banks offer and let people apply for.
1) Prepaid Credit Cards (no advantage for rebuilding credit)
Prepaid credit cards work more like gift cards or debit cards. They have high fees and are usually offered by big companies like WalMart, GreenDot, and NetSpend. They don’t provide any advantages for rebuilding credit. The big reason for this is that … READ MORE