Are you looking for information that can help you gain a deeper understanding and appreciation for unsecured credit cards? If your answer to this is YES then, this article is made just for you.
In the paragraphs below, we have listed and discussed things consumers like you should know about these card programs which can eventually help you should you decide to apply for one, in the next few months.
Fact 1: Unsecured credit cards are not made one and the same. They carry widely-varying rates of interest, fees and charges, payment terms and options, credit limits, and eligibility requirements.
Hence, if you wish to receive a line of credit that matches your needs and preferences, it is very important that you take the time to compare the features imposed on various programs. In so doing, you can soon find one that matches your needs, preferences and expectations.
Fact 2: They’re among the most difficult card programs to apply for. That’s because issuers of unsecured cards usually employ stringent requirements and screening procedures to identify who among their card applicants are worthy enough to receive and manage the lines of credit they’re offering. The screening procedures often involve credit checks, a thorough review of a prospective cardholder’s financial standing, and other related background checks.
No wonder, many consumers today are opting to take out secured and prepaid card accounts, especially if they have less than perfect credit history.
Fact 3: Some unsecured card accounts come with excellent perks and incentives. There are some firms today that let their existing cardholders accumulate points and collect rewards from their transactions. For example, in some programs, you can receive freebies in the form of gift items, travel-related incentives and even insurance plans, especially if your card issuer has forged partnerships with insurance brokers, nearby. You can also look forward to being granted cash rebates, special privileges and even discount cards to your favorite shops and stores.
You simply need to look for firms with beneficial rewards programs and soon you can earn points and enjoy exciting perks from your credit card charges.
Fact 4: Unsecured cardholders run the risk of incurring huge debts, especially if they won’t pay close attention to their credit card habits. For instance, those who submit just the minimum amount due are usually penalized with huge interest charges. And such fines often make it harder for them to settle their debts completely.
On the other hand, those who have problems with impulse buying and uncontrolled spending habits are most likely to incur huge financial obligations. After all, unsecured credit cards tend to come with extremely high spending limits that will encourage cardholders to charge all their bills and purchases on their respective accounts.
Now, if you’re planning to apply for such cards, we advise you to always stick to responsible credit habits. This does not only entail keeping up with your monthly bills. It also involves using just a reasonable percentage of your spending limit as well as charging ONLY important and necessary expenses on your unsecured line of credit.
About the Author
Emma Lee is a financial consultant and a freelance writer. She has more than 15 years of experience in helping consumers find the best secured, prepaid and unsecured credit cards. She regularly contributes articles to Secured Credit Card Site to provide readers the latest information about various card programs as well as the latest trends in financial management.