A credit building card is one of the easiest ways to build or rebuild your credit. It’s also a convenient way to pay for purchases and get cash back.
What is the limit on credit builder card?
A good credit score is necessary for nearly every financial move, from obtaining a mortgage to getting car insurance. If you don’t have a good score, you may not be approved for these products or pay higher interest rates than other applicants.
To build your credit cards to build credit score, apply for a credit card that reports to at least one of the major credit bureaus. That will make it easier to demonstrate that you pay on time, have a low balance and use your credit wisely.
Another way to build your credit is by asking a friend or family member to add you as an authorized user on their card. This adds your payment history to their credit files, which can boost your FICO score.
Alternatively, you can apply for a secured credit card, which requires an upfront deposit of around $200 or $300 to open an account and report to the three major credit bureaus. These cards typically charge a lower interest rate than standard unsecured credit cards and are a great option for people with no or limited credit history.
Aside from a credit building card, other ways to start or repair your credit include registering on the electoral roll, paying rent on time and using utility bill payment services to report your payments to the credit bureaus. These steps will help you establish a strong credit history that will be invaluable when it comes time to purchase your next home or car.