Reward credit cards are some of the best cards to have because they can give back to you while you are rebuilding your credit.
It doesn’t matter if you’re recovering from a bankruptcy or getting back on your feet after a slight slip or a job loss. The rewards cards can help you rise again quickly. The following are some of the perks of those types of cards and a little bit of information about how each one is:
Cash Back Reward Card
The cash back card is probably one of the most popular options for people who want to experience the “give back.” Cashback cards provide the cardholders with a certain percentage of the money back that they spend on various goods and services. The amount that they get back can vary anywhere from 1 percent of the purchase to 6 percent of the purchase. Different card companies may handle the redemption differently. Some companies allow their cardholders to redeem their cash back at any time, while others do it in a more structured fashion such as once a month.
Some card companies offer a number of perks and benefits along with the cash back option. Capital One is such a company. Capital One gives people access to their scores so that they can keep a close eye on them and improve over time. The scores update once a month, and customers have access to a variety of card features and tools as well as tools for the score. Once such tool is the score simulator. The simulator lets the customer know how his or her credit score will change if that person performs certain tasks.
For example, a person can punch into the simulator that he is going to pay $400 toward his cards, and the system will calculate a new score based on that action. Cardholders can use that tool to perfect their card usage in a way that will optimize their credit score. They can use the tool as much or as little as they want and try a number of scenarios such as credit line increases, large payments and so forth. The tool can help someone get the score exactly the way that he or she wants to get it.
Airline Miles Reward Cards
The airline mile credit card options are good for consumers who take frequent trips to different places and have traveling lifestyles. The credit card company rewards such customers with free miles that they can use on subsequent trips. The credit card user benefits a lot because he or she gets to go to various places for free sometimes. It allows the person to see the world and still work on the credit score at the same time. The travel rewards card is still one of the most favorited cards that the consumers talk about. Many people love it because it usually offers a huge bonus with lots of miles to new cardholders.
Points Reward Cards
Point reward cards are another class of reward choices. They issue points whenever the consumer shops, and then the consumer uses those points to do various things. They company may have a site where cardholders can buy merchandise and such, or they may be able to use their points to pay their bills or something else. Some of the credit card companies get very creative in the ways that they let their cardholders receive rewards and use them. A variety of choices is available for consumers of all classes.
Tips for Boosting Your Score
You can boost your score a number of ways, but the quickest and easiest is to always pay your bill on time. You can also try to double up on your payments so that your score will decrease. Creditors love to see when people put extra effort into the payments. You should keep your balances down below 30 percent of the available credit and also be sure not to make too many inquiries unless you truly need something. your payment history and your available credit are two of the biggest factors in your score. If you can find a way to balance all those elements, you’ll be just fine.