Credit card debt is consuming our lives. Whether economic pressures have lead you to need credit to cover your monthly expenses, or you simply overspent, credit card debt is becoming a problem for many Americans. Luckily, there are ways to find the right credit for your position in life that can make or break your financial future.
Stages Of Life
Starting out fresh in life can make gaining credit difficult. Since you lack an adequate borrowing history, most lenders only offer credit cards with stingy terms. When looking for credit at this point it is important to find a card with a low limit and the best rate, which will keep your spending in check and promote a positive credit experience. Your goal is not to use credit for purchases, but to make purchases that you can quickly pay off in order to establish a responsible credit history.
Having a well established credit history takes both time and diligence. At this point you may be looking for a higher credit limit or a card with bonuses for spending. While either of these cards are ok, finding the lowest rate on a card is also important. Since you do have a strong credit history you can negotiate with creditors for the best deal on a card that fits your financial goals.
For those who have dealt with debt problems or a bankruptcy, finding good credit can be challenging. There are some creditors who target post-bankruptcy consumers, but unsolicited credit card offers are often full of unfavorable terms and should be ignored. Just like someone starting out, your goal is to establish a positive credit history. Rebuilding credit can take time, which is why finding a small, unsecured line of credit is the best way to begin the process. Avoid secured debts, loans with high interest rates and prepaid credit cards.