Every once in a while, you will get an offer in the mail that seems hard to pass up: a premium credit card. These cards often offer extraordinary benefits and promises that may entice you into signing up with the creditor; however, these benefits may precede any fine print that may make the card not worth it. These credit cards will often have fancy adjectives attached to them: gold, premium, platinum, etc. Beware of the benefits of these cards as marketers and creditors will use any language to get you to sign up for that card.
One major thing these credit card companies may not mention about these “premium” lines of credit is the fact they will most likely have an annual fee of some kind. When you receive an offer for one of these cards, make sure there’s no annual fee attached to them as there are plenty of creditors out there who offer credit cards with no annual fees (but have fewer “benefits”). These annual fees can range from $70 to $500 depending on the creditor and the premium benefits the card offers.
Every credit card out there touts some kind of benefit or perk for using that card, but a lot of times these cards may only benefit you if you use the card in a certain way or with particular retailers and outlets. For example, a lot of “travel” cards will only benefit the person who extensively travels. If you’re not traveling; then, what’s the point of getting a travel card? No point in paying an annual fee for such a card; on the other hand, if you travel a lot–especially with a certain airline–then the perks might benefit you in the long run. Just keep in mind the benefits the card offers and if those benefits help you in any way.
Another touted perk that a lot of creditors offer with their credit cards is that they will improve your credit score. This is somewhat true–in the long run. However, opening a new credit card will temporarily hurt your credit score in the short term. The credit bureaus, Experian, Equifax, and Transunion, will always read new credit cards as short-term negative.
The credit card will eventually improve your credit score, but only if it’s a high limit, the debt-to-limit ratio is under 30%, there are no late payments, and it has been opened and used for at least several months, sometimes even years. So if you’re looking to give yourself a quick credit boost, steer away from credit cards as they only give an improvement to your credit score after several months of opening the card. Many people fall into the trap of opening several credit cards before trying to get a loan or mortgage, not realizing that the credit card may temporarily lower their credit score. If you plan far ahead, then getting a credit card will help you improve your credit history.
One last thing to note when it comes to any credit card is the Annual Percentage Rate (APR) of the card itself. Even though you may pay an annual fee, it may still have a high APR, which will add interest to your card. Sure, some cards may have no APR for a set time (between 6 and 18 months usually), but after that time, the interest will start to stack and apply.
If you’re having trouble obtaining a good credit card due to your credit history; then, we can help you build better credit. Call us at (877) 212-2450 for a free consultation. We are industry experts that will help you repair your credit and give you advice on how to further build your credit history.
If you have any questions, feel free to give us a call at 877-212-2450!
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The true sign of a business is one that could take your money, but instead tells you the truth that they can't help. I spoke with Sandra on behalf of a friend that had some credit issues and she determined that based on his report, she couldn't help him at this time. This company is wonderful and I would recommend to all friends and family having credit issues.
Thanks again Sandra for your honesty.
I've known Sandra for at least 10 years. She is a phenomenal person to work with and a super hard worker that cares about people. Do not hesitate to work with her and her amazing team. Jeff is wonderful as well!!
Thank you, team Fix Your Credit Consulting you are amazing*****
Sandra is the best she is patient kind knowledgeable and undertaking and provides a judgement free zone no matter how many times you find yourself calling her because life kicked your butt again .
Jeff is also great and super helpful and always is super on top of everything he does and every phone call . I owe them for helping get my life back
When thinking about what I was grateful for over the past year one interesting thing came up as a standout.
Perhaps credit services are not the typical thing to be thankful for at this time of year, and perhaps not for all standard reasons you might expect to hear in a gratitude tribute, but it goes like this...
Sandra is not just experienced and knowledgeable, but also calming in her manner. She was not judgmental and through mutual sharing made me realize things can happen to anyone and not to feel ashamed for inquiring about the subject of credit and all of the 'fun' things that can go along with it etc.
One of the most important things I am grateful for is how she was able to lower my stress level by not only being kind, but also by being respectful and truly understanding.
I am so glad I reached out to get a fresh perspective and get my queries answered on the way to fixing any related issues that need fixing.
Thank you so much again.
