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Best Credit Cards to Build Credit
27 Aug 2018

What You Need to Know About the Best Credit Cards to Build Credit

Credit card are almost indispensable in today’s society; nearly 70 percent of Americans have at least one, helping them make online purchases, earn points towards trips or items, and cover expenses between paydays. Finding the best credit cards to build credit is the best way to raise your rating from bad or fair to good or excellent. They are also incredibly helpful for those who have never had to establish credit before, giving you a fast and easy way to prove that you are trustworthy from a lending point of view.

Why Do You Need Good Credit?

In today’s society, having good credit is essential. Your credit rating affects more than just your ability to qualify for a loan or credit card. It can limit the types of places you are eligible to rent, lead to higher insurance rates, and can even remove you from consideration for many job opportunities. Credit scores work as follows:

  • Excellent credit: 700 to 850
  • Good credit: 680 to 699
  • Average credit: 620 to 679
  • Low credit: 580 to 619
  • Poor credit: 500 to 579
  • Bad credit: 300 to 499

Individuals with good or excellent credit tend to get the biggest perks. For example, they tend to receive lower interest rates and more flexible repayment terms than those who have average or low credit.

When Do You Need to Build Credit?

While there are multiple categories, most lenders consider everyone with a score of 620 and below as credit risks. If you credit score is anywhere below that threshold, you should immediately get to work on repairing it. Those who are close to the magical 620 mark may be able to get away with having old debt removed from their credit report. Others, in particular individuals with scores between 300 and 580, may need additional help.

You should start thinking about your credit as soon as possible. For those who have yet to establish any type of credit at all, this means spending time thinking of ways to build your credit as soon as you turn 18. Setting yourself up as a credit worthy person at a young age may even give you access to better student loan rates. If you currently have really bad credit, don’t give up hope. Now is the best time to seek out ways to help you rebuild.

How Can the Best Credit Cards to Build Credit Help?

It is never a bad time to start building your credit. As long as you are over 18 years of age, you can qualify for a credit card. Making regular payments is the best way to start showing lenders that you are credit-worthy. Contrary to popular belief, you do not need to carry a massive balance across multiple cards. A modest balance is sufficient as long as you make your minimum monthly payments on a regular basis.

Contact us at Bonsai Finance to learn more about applying for a credit card, even if you have no, bad, or poor credit. Our agents can match you with lenders eager to help you find the best credit cards to build credit with rates and fees that are affordable for you. Not having a credit card in today’s day and age is a massive inconvenience. When you get a credit card designed to help you establish or rebuild your credit, you can benefit from all the perks that come with it. Get in touch with us to day to apply.