4 Store Credit Cards that Can Help Rebuild Your Credit

Using store credit cards may not offer the same value as conventional credit cards, still they are an effective way for consumers looking to mitigate their credit problems. If your credit score is low, a store credit can be a good option for you to rebuild your credit, as they are easily available than normal credit cards for which consumers need to have an adequate credit score. In addition, store credit cards are also a good alternative to subprime credit cards that carry higher interest rates. In this blog post, we have listed four store credit cards that you can use to get some significant discounts as well as improve your credit score.

1. MY BEST BUY Reward Zone Credit Card

MY BEST BUY credit card comes in two categories — MY BEST BUY CREDIT CARD and MY BEST BUY VISA CARD. Though both the cards offer a five percent back in rewards as well as promotional financing, the later also allows two percent back in rewards for dining, grocery, and gas purchase, outside Best Buy. You can use the MY BEST BUY VISA card to get one percent back in rewards for everyday purchases as well. The BEST BUY Mastercard has no annual fee.

Note: The reward you get for gas purchases on MY BEST BUY VISA is only available through April 2016.

2. Walmart Credit Card

Just like MY BEST BUY credit card, consumers don’t have to pay any annual fee to get this store credit card. Though the card does not offer substantial rewards, they get customers some discounts on gas and special financing offers. Unlike some of the other store cards, the Walmart credit card gives its applicants the privilege to also receive a monthly update of their FICO credit scores.

3. Kohl’s Charge Card

Kohl’s Charge provides its credit card applicants discounts at least 12 times a year. You receive a 20 percent discount on your first purchase. In addition, when you become their MVC or Most Valued Customer, you receive six more offers every year. Applicants don’t have to pay any fee to sign up for or use this credit card.

4. Lowe’s Consumer Credit Card

Consumers can use this store credit card to either get a five percent discount on everyday shopping or sign up for a 12-month or 18-month special financing. No interest is charged to your account till the moment you settle the card’s payments within 12 or 18 months, depending on the financing option you have chosen. The Walmart credit card attracts no credit fee. In addition, Lowe’s credit cardholders can also combine the special financing options with the five percent discount till their purchase values meet the minimum purchase threshold.

Conclusion

Store credit cards can be a great way to rebuild credit and resolve your credit score problem as the benchmark credit score to sign up for them is not as high as that required for conventional credit cards. However, these cards often have high interest and, therefore, should be used judiciously. In fact, it’s ideal to consult a professional offering credit repair services before you sign up for a store credit card or look for other ways to restore your credit.

Get Your Credit History Restored: Rebuild Your Finance

A good credit score is essential to get various financial benefits such as low-interest rates on loans, credit cards, reduced insurance premiums, zero to minimal security deposits on utilities, and others. On the other hand, a poor or less than adequate credit score can make you ineligible to take advantage of these benefits by bringing down your creditworthiness. A scenario like this can be frustrating to any consumer. On top of it, wrongly reported items on your credit report can add to the woes as they make your credit score dip. The inevitable questions are then “What’s the way to fix your credit history?” and “What steps should you take to dispute an error on your credit report?” Well, in this post we discuss the points you need to keep in mind at the time of drafting a credit report dispute letter and sending it to the relevant authorities to remove the inaccurate items from your credit report and restore your credit now.

Keep in mind the following items when drafting a credit report dispute letter:

Include relevant identification information

If you find inaccurate items on your credit report, raise a dispute with the relevant credit agencies. Draft a letter and include your name, address, credit report reference number, last four digits of the social security number, date of transactions,  and other details. Subsequently, the credit agencies will reply with their clarifications.

Describe the misreported item

The misreported items should be defined clearly for the officials to remove it from the records. If it is a credit card transaction, mention the last four digits of the credit card used, credit card vendor, transaction dates, and amount.
Make your letter readable and sound professional
Hand-written letters should be legible and easy to understand. It is advisable to send a typed and well-formatted letter and proofread the draft carefully. You can also take help of a professional business writer, who specializes in preparing such drafts. As a rule of thumb, avoid making the dispute letter more than a page.

Include copies of your documents

To bolster your case, include all the supporting documents. These documents can elicit a positive response from the creditor involved. Don’t send the original copies as those are the strongest evidence you have.

No need to mention any FCRA rules

Focus on the area of concern rather than reiterating the rules as the people at the other end already understand the rules. You primarily need to specify your main concerns related to inaccuracies in your credit report.

Ask for a Clear Resolution

Some debtors make the mistake of highlighting the problem clearly, but forget to mention the corrective action that is required. Make sure you categorically communicate to creditors/credit agencies about what resolution you want to get the wrong items removed from your credit report.

Conclusion

If you think you are not getting a satisfactory response from any of the three credit bureaus or agencies and that they are dragging their feet on your case, you can seek the help of a credit repair company. Companies like these know all the rules related to fair credit reporting, and they can present your case strongly to remove all the discrepancies from your credit report, help restore your credit score.

3 Key Tips to Wisely Use a Credit Card

Getting a credit card may be easy, but using it smartly could be difficult. Depending on how consumers use their credit cards develops good or bad spending habits. Responsible use of credit cards increases the credit score and makes people eligible to secure mortgages and auto loans at lower interest rate. On the other hand, reckless or unplanned use of credit card leads to bad credit and consumers might end up spending thousands of dollars paying for late fees and interests.

Ways to Avoid Credit Card Pitfalls

Proper financial planning might help consumers get through a monetary crisis without causing a dent to their credit score. It is always better to set certain rules on usage and repayment of a credit card to achieve financial stability. Here are a few tips that might help an individual manage credit card wisely:

1) Regular Payments

Debtors need to pay off their credit card balance every month, without a fail. Clearing the dues every month eliminates the need to pay interest on the purchase made using the credit card. To avoid paying monthly interest, they need to keep track of their expenses and avoid overspending.

2) Don’t Skip Payments

If you have a significant balance on the credit card, look for ways to get out of the debt. Try to make the minimum payment every month because missing out on a payment will cause late payment fees, and affect your credit score.

3) Don’t Spend Over 30 percent of Credit Limit

Keep the credit utilization rate of your credit card below 30 percent to maintain a healthy credit score. The credit utilization rate is inversely proportional to your credit score, which makes it all the more important to check your spending. Someone with a credit card limit of $2000 should try to keep the balance below $600.

 

Many consumers often discard the idea of owning a credit card by seeing its negative impact on their credit score. Let’s learn why having a credit card isn’t a bad thing:

 

• Many credit cards offer reward programs such as miles point and cash back, which may be useful for the card owner.
• Plastic money might protect card owners from losing any money due to theft. Even if you lose your credit card, you would not have to pay for the fraudulent charges if the thief maxes out the credit limit.
• When you make timely payment of credit card bills every month, it improves your credit score and builds a positive credit history. The habit of making on-time payments may help you get a home or auto loan at a lower interest rate.

 

There are two key aspects of successfully manage your finances and the credit score. Firstly, never spend more than what you are supposed to pay at the end of the month. Secondly, if you use the credit card to borrow money, it is essential to make a payment schedule in advance to pay off the balance in the shortest possible time.

A Bad Credit Score Will Cost You

When we speak of financial tools, we think of various aspects such as a sizable bank balance, knowledge of the current stock market trends and investment-related opportunities. But something as simple as a good credit score also goes a long way in making your financial life smooth.

Bad credit scores are a result of the following reasons:

• Violating the debt repayment terms in the past,
• A significant amount of debt in the past,
• Currently overdue debt,
• Mishandling of financial accounts,
• Incidents of bankruptcy,
• Bad credit-to-debt ratio or
• Any combination of the above.

Four Major Ways in Which a Bad Credit Score Can Cost You:

1. Difficulty in Getting a Loan Application Approved – Creditors have a set limit, and if your credit score is below that limit, you are not qualified to apply for a loan. Even private creditors are not confident lending people with a low credit score. This is understandable because your credit report is essentially a summary of your financial behaviors in the past. A low score means, you have faltered with your repayments in the past that blemished your credit history.
2. Difficulty with Mortgages – Just like other loans, the same principle applies when taking out a home loan. You will typically borrow in lieu of your house, which is kept as collateral. A poor credit score will not allow you to get a mortgage because in the creditors mind, you should not be granted the ownership rights of the house.
3. Higher Interest Rates – Despite the low credit score, if you manage to secure a loan from a funding source, you will likely have to put up with a higher interest rate. This will push your already bad financial state further down into deep waters.
4. Employment Hassles – Don’t be surprised if your future or even current employer demands to see your credit report. Employers want to hire reliable people, and your credit history is a big determinant in such a decision.

In order to improve your credit score, you need to manage your finances more effectively and focus on improving your credit-to-debt ratio. Additionally, you can also hire a professional agency to spot and rectify any errors in your credit report that can increase your credit score drastically. A credit restoration company is your best bet at getting your credit score up as it also gives additional advice, which is focused around improving the way you approach all of your finances.