Even those who have dealt with the hassles of credit rating repair might be surprised at some of the different types of credit cards that are available for consumers. It’s important to know and understand the distinction when selecting the card that’s right for you. Choosing the right card now could prevent you from needing credit repair advice in the future. Whether you’re on the road to recovering from credit problems or you want to prevent them entirely, here are two options for you to consider.
– Unlike standard credit cards, a charge card doesn’t have a set line of credit. Instead, the cardholder is required to pay off the full balance at the end of each month. Not doing so may result in a number of penalties, including the cancelation of your card. Charge cards don’t have minimum payments (as that would be the balance) or finance charges. Some credit repair programs might recommend these cards for rebuilding credit.
– Consumers with poor credit or no credit history might find themselves turning to secured credit cards. For these cards, the user pays a security deposit, which then becomes the card’s line of credit. This prevents debt from building up.