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WHAT TYPE OF CREDIT CARD IS BEST FOR YOU?
Asses the features of the different types of credit
cards being offered by
StarLoanServices.com. Listed are
the pros and cons of the different kinds of major credit
cards. This information will help you choose a card that
is best for you.
Rewards Credit Cards -
APPLY FOR CREDIT CARD WITH REWARDS!
Pros - These types of credit card offer rewards
for spending in the form of airline miles, cash, and/or
points to be used for savings and discounts at various
types of stores and restaurants. A credit card with
rewards is a great choice for you if you anticipate
paying your balance in full every month.
Cons - The terms and conditions of these
cards need to be examined carefully. Interest rates and
annual fees associated with these cards are typically
high. So, if you carry a balance every month, the amount
you pay in interest is likely going to outweigh any
rewards you receive.
Student Credit Cards -
APPLY FOR A STUDENT CREDIT CARD!
Pros - Building credit is easy with a
student credit card. These types of credit cards are
designed for people with no credit looking to establish
a positive credit history. Apply for a student credit
card and get the spending power you need!
**Please note that StarLoanServices.com also offers low
rate
student car loans and
personal student loans that will help those with no
credit build credit.
Cons - Typical interest rates associated
with these types of cards are higher than regular credit
cards. It is not uncommon for students to end up with
debt and poor credit as a result of credit card mis-use.
Learn more about we can help if you become a victim of
student debt.
Pre-Paid Credit Cards -
APPLY FOR A PREPAID CARD!
Pros - These types of cards can be used in
the same manner as a regular credit card. Instead of a
credit line, these cards require you to 'load' your card
with money. You can spend as much as there is money on
your card. Obtaining approval for a prepaid credit card
is very simple, even if you have bad credit or no
credit.
Cons - It is not uncommon for your
repayment history to not be reported to the credit
bureaus. Therefore, a prepaid credit card is not an
effective means of building or re-establishing your
credit.
Applying for a bad credit credit card will also help
re-establish credit.
Also, there are situations when a prepaid credit
card can not be used. For example, airline tickets,
hotels and car rentals can not be purchased with a
prepaid credit card.
Secured Credit Cards
Pros - Utilizing a secured credit card
is one of the best means for building or
re-building
your credit. These cards function exactly the same as a
regular credit card.
Cons - You will have to put down a security
deposit between $150-300 when you apply for a secured
credit card.
The interest rates and annual fees associated with these
types of credit cards also tend to be higher. Interest
rates are usually 14% or more. Annual fees are at least
$50.
Business Credit Cards
Pros - If you are looking to build
your company's credit, then a business credit card is a
great choice.
Cons - It is not uncommon for a credit card
company to require that a business be in operation for a
minimum of two years before a business card is granted.
However, approval will likely be granted if you can
provide a letter of reference from your bank, supporting
a positive account history.
We also supply
business loans for generating cash.
Related reading:
-Credit
vs. Debit Cards |
