You can avoid interest charges by paying off your balance in full each month. Standard APRs generally range from the mid-teens to high twenties. High standard interest rates: Outside of 0% APR promotional periods, credit cards are considered a high-interest form of debt.Travel perks: Frequent travelers will appreciate that some credit cards provide travel-related benefits and protections such as trip insurance, rental car insurance, airport lounge access and the ability to transfer rewards points to hotel and airline partners.These 0% intro APR offers, which may last for 15 months or longer, may be ideal for financing a large purchase interest-free. 0% intro APR offers: Certain credit cards offer a 0% introductory APR period during which you can make purchases or transfer balances without accruing interest.So if your card is lost or stolen, you won’t be on the hook for any unauthorized purchases. Fraud and theft protections: Most credit cards come with zero liability protection.These rewards may be redeemed for things like statement credits, travel, gift cards and more. Rewards and cash back: Many credit cards offer rewards programs that allow you to earn points, cash back, or miles for every dollar you spend.This can help you get approved for other forms of credit, like a mortgage, down the road. Opportunity to build credit: Using a credit card responsibly, by making on-time payments and avoiding high balances, can help you establish and improve your credit history.Credit cards also provide some fraud protection, meaning cardholders are usually not liable for unauthorized charges made to their accounts. This builds a solid credit history, which is important not only for approval for better cards, but also for other life expenses like renting an apartment or getting a car loan. Credit cards can be helpful for people who regularly use them for purchases and pay off the balance in full every month. Whether or not credit cards will be useful tools for you largely depends on your lifestyle and financial habits. In some cases, you may already have some credit history due to other payments being reported to the credit bureaus such as your rent, student loans, phone bill or utilities. If you would primarily be getting a credit card to build credit history toward qualifying for a mortgage or other loan, be sure to check your credit reports before you apply. You also won’t find as much in the way of additional fees compared to other secured credit cards. Your security deposit doesn’t earn interest and the increased cash back on restaurants and gas stations is capped per quarter, but it’s relatively rare to earn rewards at all on a secured card. Other Benefits and Drawbacks: Discover will review your account after seven months to see if you qualify to graduate to an unsecured account which is a worthy goal for anyone applying for a secured card. Welcome Offer: Unlimited Cashback Match - Discover will automatically match all the cash back earned at the end of the first year Plus, earn unlimited 1% cash back on all other purchases. Rewards: Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. The Discover it® Secured Credit Card is a solid option for those willing to consider a secured card, especially because it offers one of the only secured cards on the market with a welcome bonus. Click through to Discover’s website to see terms and conditions. ![]()
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