Cards for Borrowers With Good Credit Rating

by admin on May 1, 2014

credit_scoreFinance companies, banks, and department stores offer secured and unsecured credit cards. There are prepaid, department store credit cards, no annual fee, and other products. As a rule, customers with excellent and very good credit have plenty of choice because they are considered low risk by financial institutions. There are different options to choose from depending on your lifestyle and payment habits. A reward card is one option for customers with excellent credit in that they earn bonus points that can be redeemed for gift cards and certificates, airfare, hotel accommodation, and more. A cashback card is another option that allows customers to save money on purchases.

Credit card companies offer rewards and incentives to encourage use and attract more customers. Specialty cards award customers for making purchases at participating retailers, coffee shops, restaurants, and other establishments. Issuers offer benefits such as complimentary bonus points that can be redeemed for CDs, holidays, and days out. Rewards and cashback credit cards offer plenty of benefits, but some issuers assess fees and charges. Credit card companies also look at spending patterns to determine which schemes and programs will be most effective and lucrative.

These cards are usually offered to existing customers and borrowers with a good credit rating.

Customers with poor credit have several options depending on their credit score and income. Borrowers with poor credit are considered risky customers, and their pool of options is more limited While there are some options for such customers, the interest rate can be as high as 40 percent. Retailers and department stores also offer credit cards that feature perks such as free gift wrapping and alterations. A department store credit card is a good option for borrowers who pay the balance in full because of the higher rate of interest. It is important to monitor your spending in order to build or rebuild your credit history. Regardless of the card of choice, making regular payments helps holders to build credit, and their chances of getting approved for a standard credit card increase. A student credit card is another option for students who are enrolled in college or university. Students enjoy benefits such as attractive interest rates, no annual fee, discounts, and others.

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