For quite some time, many consumers have found themselves starting over in many ways when it comes to the their credit histories and credit scores. They’ve made it through a devastating recession and while they’re recovering, they’re also discovering their buying options and the affordability of credit extended has become quite complicated.
Enter the credit building credit cards. There’s a reason this is one of the fastest growing credit card dynamics. This week, we take a look at a few of the newer credit cards that allow consumers to pick up the financial pieces and begin to put their lives – and buying power – back together.
This prepaid credit card allows consumers to define their credit limits based on their deposits – up to $1,500. It reports all of the major credit bureaus, too. Once you’re approved, you’ll need to pay a $69 deposit, which is reapplied to your checking account after ninety days. You must have a checking account to qualify for this prepaid credit card. ATM fees are $2.50 per transaction and you’ll enjoy twenty-four hour online access.
First Option MasterCard
This straight-forward credit card is issued with no credit check. This means, of course, that approval is guaranteed. You may deposit up to $5,000, allowing for a high credit limit when you need it. There is a $300 minimum credit line, so this might not be the right solution for those looking to use their prepaid credit cards to pay utility bills or the occasional online shopping.
Further, there is a $99.95 processing fee, though you’ll also enjoy some of the perks the traditional credit card offers, including travel accident insurance, extended warranty protection and you can even request emergency cash transfers for life’s many unexpected events. Finally, there is also an annual fee of $59. This offer is another ideal solution for those looking to rebuild their credit.
This offer has enjoyed much early success due to the marketing efforts by MasterCard. It doesn’t require a credit check, though card holders enjoy all of the benefits that accompany the MasterCard name. You can have payroll direct deposited, pay your bills online and transfer funds from your bank account to your card.
Finding areas where you can add cash on the go is easy too. Wal Mart, Sam’s Clubs, CVS pharmacies and thousands of MoneyGram locations are easily found around the nation. It makes a great choice for parents wishing to teach their teens financial responsibility as well as those looking to rebuild their credit.
This full featured platinum credit card offer requires no credit check or credit history. It reports, as do the others, to all three major bureaus each month. Applying is easy and you can define your own credit limit from $300 to $2000. The APR is a competitive 14.99%. There is an annual fee, but it too isn’t as high as some of the other comparable offers. You’ll pay $39 a year. There is no balance transfer option with this offer, but for many, this is the right solution that helps them get their credit histories restored in a fair amount of time.
Rebuilding one’s credit isn’t always easy, but if there’s one thing the recession taught all of us it’s that it’s not impossible and with more Americans finding themselves navigating through high interest rates and decline letters, you can be sure the need for secured credit card offers and prepaid credit card offers will continue to grow. As a result, the companies offering these lifelines will begin to increase as well.
Remember a secured credit card offer should be approached with the same attention to detail as a traditional card. You’ll want to be sure the annual fees, late fees and over the limit fees are a reasonable rate for your budget. The terms and conditions will spell out exactly what any card offer includes, so be sure to carefully review those as well. Finally, be sure no matter which offer you select, that it reports to the credit bureaus each month so that you can once again qualify for the lower interest rates and more attractive offers that good credit scores will earn you.
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