Should I Get a Credit Card With No Annual Fee?
The best time for a new credit card is while you’re young enough to pay regular bills and not be too irresponsible to repay your debts on time each month. But what if you need to build up your credit score before applying for a new credit card? If you are in this situation, what do you do? Do you just go into the application process with no idea of how to build credit or do you try and learn some tricks that will make it easier for you to get approved?
It really depends on your situation. If you’re financially responsible and know you won’t default on your debts, then the answer to the question’should I get a credit card with bad score’ is easy. Of course, if you just don’t have a good enough credit score yet to qualify for regular credit cards, you will probably face a puzzling catch-22: No card, no history, no rewards. So how do you get started building a good credit score now? There are many good options.
The first step should be learning about credit scores and why the numbers you see on your report are important. The three major credit bureaus – Experian, Equifax, and TransUnion – publish their own credit scores online. Every year, they also send out a confidential credit report that will give you an idea of where you stand. If you’re like most people, you only care about one thing: Getting the best deals on new card offers.
In that case, the answer to the question’should I get a new card with bad score’ is ‘yes’. There are many cards out there that target people with lower than perfect scores. Some of them actually target people with borderline credit scores. These cards almost always offer big savings at low interest rates. That’s why they’re so attractive.
The problem is that most people don’t qualify for these offers. If you don’t have an excellent score right now, you won’t be able to cash in on rewards credit cards. This means that you’ll have to settle for second best, or worse, simply settle for a cash advance. If you can qualify, however, these second rate cards can save you hundreds of dollars over time.
If you’re already delinquent on your credit cards, it may be time to consider switching to a better interest rate. Or, maybe you should start paying off your balances. If you do any of these things, your FICO score should start to rise again. Before you know it, you could even find yourself with a higher FICO score than you did a few years ago!
When looking for a new credit card with better incentives, make sure you shop around for all your options. It might seem like a good idea to just go with the first offer you find. However, that first card might not be the best deal for you. You should definitely spend some time researching credit cards and comparing their different rates, benefits, features, and benefits. Just because you found the lowest interest rate doesn’t mean that you necessarily need the card.
If you’ve been diligent about paying your bills, and maintaining an excellent credit score, you should definitely consider getting a credit card with no annual fee. Even if your credit history hasn’t improved, you should still consider one of these cards. You’ll save money in fees every month, even after the introductory period is over. In fact, after the first year, you could end up saving so much money on interest that annual fees might not even be an issue anymore!
Negou Seid is a Software Engineer, Business owner and loves writing useful blogs.