Wednesday, January 11, 2012

Credit Cards For Fair Credit

Learning to Raise Your Credit Rating : Credit Cards for Fair Credit.

There are many levels of scores when it comes to credit reports. Generally, these levels are broke down into poor, bad, fair, and excellent. The credit score is a three digit number that normally ranges from 300-850. There are many factors that are calculated when determining a credit score. These factors include patterns related to spending, the method in which an individual can save money, the amount of open accounts on the report, and similar items. When a person has a fair credit rating, normally, they are permitted to obtain a certain level of credit. Generally, these individuals can qualify for certain credit cards. In this article, we will be examining credit cards for fair credit.

Fair credit can mean several things. However, most of the time it often means that there are some unpaid items left outstanding on your credit history report. You may have paid other items on your report, and you may be making progress on the unpaid items, but there are still open issues that must be tended to. Most credit card companies take this into consideration when you apply for a credit card. Usually, you can obtain a number of credit cards that are appropriate for your financial needs by having fair credit.

One type of credit card for fair credit is the charge card. The charge card is generally issues to individuals that have fair to excellent credit scores. There is usually no limit of credit imposed on these particular cards. However, with a standard credit card, you will have a maximum amount that you can spend. Many people do not understand when they receive a charge card that the amount that is spent on it must be repaid at the end of the billing cycle. This is often where numerous individuals experience complications.

While it is tempting to have a shopping spree in which you can purchase anything you want, you must carefully consider the financial consequences of your actions. With a charge card, if you are unable to pay the amount that you have spent each month, many things may happen. First, a late fee will be imposed on your balance. This means that you owe even more money to the credit card company. The second thing that may happen is that the company may impose restrictions on your card. The third thing may be a totally suspension of the charge card. Then, of course, it will be reported to credit agencies. If you are interested in acquiring a charge card, it is imperative that you spend with caution.

The second type of credit card for fair credit is the basic credit card. With this type of credit card, you will have a set spending limit. You will also be required to make a minimum payment each month and pay a certain percentage of interest on the balance that you have. In addition to this, you may be subjected to annual fees. Many standard credit cards offer rewards and incentives to individuals that pay on time and manage their money effectively. This is often a wise credit option for those with fair credit.

When selecting a credit card for fair credit, it is essential to pay special attention to the conditions that are listed in the agreement of the card. By not understanding these conditions, and making a financial blunder, you may create a situation in which your credit goes from fair to bad. However, having a good understanding of the conditions and maintaining those conditions can quickly push you over into the excellent credit rating.

Thank you and Good Luck!

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