Credit is an important part of our lives since it affects whether we can rent property, buy a house, or even gain employment. It’s common for everyone to make mistakes, but with money and credit mistakes, these boo-boos can damage our credit history for years, with far-reaching consequences.
Damaging your credit score and history is easy. If you move from one house to another and never pay a last utilities bill, your credit score takes a hit. If you lose a credit card bill and pay it late, your credit score takes a hit. If you didn’t manage your finances properly, and you’re unable to meet your debt obligations and need to file for bankruptcy, your credit score takes a hit.
Debt is a major part of our lives and your credit history is a major indicator into how well you manage your credit responsibilities. Credit cards can land you in trouble, but they can also help you improve your credit history. If you’re looking to rebuild your credit history, these three credit cards can help you achieve that.
If you’re starting from the bottom or have had serious financial problems, don’t worry—there are also resources for you. If you’ve recently filed for bankruptcy or a consumer proposal and you need to start rebuilding your credit history, the Home Trust Secured Visa card will help you do just that.
A secured credit card offers similar functionality as a debit card where users are required to deposit cash onto the card as collateral funds before they can use it. There are no salary requirements to be eligible for this no-fee credit card. Also, those who’ve filed for a consumer proposal or who’ve been discharged from bankruptcy (and can provide proof with a Discharge Certificate) are also eligible. The card doesn’t allow balance transfers and it has an interest rate and cash advance rate of 19.9%.
If having a credit card with low interest is important to you, then considering the Home Trust Secured Annual Fee Visa is not a bad idea. This card is exactly the same as the one mentioned above; the only differences are its lower interest rate, at 14.9%, and an annual fee of $59.
If you’re like I was, you’re a student and have no idea how to build credit. During university, I had the wrong card and didn’t know how to manage credit. Luckily, there are a few cards just for students for the time of your life when you need to build credit most.
The BMO SPC CashBack MasterCard® is an excellent choice for students who want to maximize the return on their purchases by carrying a rewards credit card. Not only will you earn 1% CashBack on all purchases but you’ll also receive SPC discounts. Note that this credit card does have an interest rate of 19.99% making it ideal for students who don’t carry a monthly credit balance. This card also has no annual fee, which is another perk for students looking to save money. Another great option is the StudentAwards MBNA Rewards MasterCard. It also gains you points while you spend which are redeemable toward cash back, donations, travel, or merchandise.
Which credit card did you use to rebuild credit? Tell us about it in the comments, or fire off a tweet @RateHub.
Flickr: KMR Photography