Choosing (and Creating) Good Credit to Boost Your Credit FileNcredible Credit
Credit can be a fickle thing and complicated to those who are unsure of how credit works. Credit is a billion dollar a year industry and while most of that represents debt that families and individuals are struggling to get out from under, it also represents the possibilities that credit can offer.
When handled appropriately and with smart decision making, credit can be a great thing that offers opportunities and advancement to you. Most people think of credit as how you are able to get a house, a vehicle or other loans for items of value, but credit is also used to judge the character about a person when they are applying for a rental house, a job or other life advancements.
It’s important to take the time to choose and create the right mix of accounts to reflect good credit, then maintain those accounts to boost your credit rating and score for the ultimate level of possibility in the future.
So, how do you know which are good accounts to have and which are ones to avoid?
There are several different types of accounts. The most popular are:
- Revolving Credit/Charge Cards – Visa/Mastercard/AMEX/Discover (approvals from banks like Chase, Bank of America, Credit Unions, etc.) Can be used anywhere Visa, MasterCard, AMEX and Discover are accepted.
- Charge Cards – Best Buy, JCPenney, Dillards, etc. Can only be used with that particular store/retail business.
- Installment Loans – Personal Loans (signature and secured), Auto Loans, etc.
- Mortgages – Loans secured by Real Estate
The main type we will focus on in this article is Revolving Credit/Charge Cards.
This form of credit allows you to borrow money up to a certain amount. The lending institution sets a credit limit, or the most you can borrow. In revolving credit, the borrower revolves the balance by rolling from month to month until it is paid in full. Interest charges typically occur for any revolving balance. As the money is paid back, the difference between the maximum credit limit and the current balance is available to be borrowed. This is the most common form of credit issued by credit cards, such as Visa, MasterCard, and store and gas cards. Credit cards are considered unsecured credit because there is no collateral securing the amount borrowed.
This form of credit is often mistaken to be the same as a revolving credit card. However, the major difference between a credit card and a charge card is the credit card can carry a balance, whereas the charge card must be paid in full each month. If the balance is not paid on time and in full, penalty fees will be added. American Express is an example of a well-known charge card. This form of credit is advantageous against accumulating credit card debt.
If you’re looking to build your credit, start by checking your 3-Credit Bureau report with www.freescore360.com (free 7-day trial).*
After you find out your credit score, check out a few of our favorite cards (based on customer and client feedback):
- Horizon Gold – $500 Limit, No Credit Check, No Employment Check, & Fast Online Application
- OxPublishing – $2,500 Charge Card, 0% interest for 6 months, Fast Online Application & NO membership dues
- MyJewelers Club – $5,000 Charge Card; Guaranteed approval;
- Hutton Chase – Guaranteed Approval, $1,500.00 Credit Line, NO Application Denied For Bad Credit, 0% interest
- Credit Builder Card – $200 Secured Card, No Credit Score Required, Instant Approval, AMAZING customer service
- Indigo Card – Choose your own Custom Card Design & Free 24/7 Account Access
- Milestone Gold Card – Choose your own Custom Card Design, Free 24/7 Account Access & Bill Pay
As with anything we enjoy, credit can be of fantastic benefit if used properly. Please be sure to use these cards (and your good credit) wisely.
To your success!! 🙂
*Our posts may contain affiliate links! If you buy something through our links, you won’t pay a penny more, but we’ll get a small commission, which helps keep the lights on. We’ve tested each account/product thoroughly and give recommendations only to what we feel would be best for our clients.