Are some credit cards better for singles than others?
Singles have enough to worry about in life. The dating scene can be brutal and trying to make ends meet on one income can cause major stress for anyone. The last thing any single person wants to worry about is whether or not their credit cards are giving them the most service for the money they pay out each month. While most people tend to sign up for the first credit card that offers them a credit limit, this can be a major mistake. Learning to avoid the high interest rates and other pitfalls that come with signing your name on the dotted line can help save you money and headaches down the road.
Rewards Programs
Credit cards are a major industry, and like any other service they want your business. In order to be competitive many credit cards offer rewards programs to their customers. Rewards programs offer many benefits to credit card users that enable them to save money and even receive free products and services from the businesses the card is partnered with. Some of the rewards you can receive from using different credit cards include:
Cash Back- Get a percentage of the money you spend using your credit card when you meet the terms and conditions set by the credit card company.
Retail- Earn points towards free merchandise every time you make a purchase at your favorite store. Retail rewards programs are perfect for consumers that do a majority of their shopping at a specific retailer.
Airline- If you travel frequently by air then airline rewards programs are exactly what you need to help you save money. Every time you make a purchase with your credit card you earn miles that can be used towards the purchase of an airline ticket.
Gas- if you travel frequently by automobile, gas rewards programs allow you to earn rebates on gas purchases when you use your credit card to fill up.
These are just a few of the rewards programs available to credit card holders. With the increasing cost of living, rewards programs can be very beneficial to singles when they try to make ends meet by offering them the chance to earn free merchandise as well as sports and theatre tickets.
Secured Credit Cards
Credit cards can be a great way to build credit when you are a single person just getting started in the real world. Unfortunately, in order to get most major credit cards you need at least some credit history. This makes getting a credit card very difficult for many young singles. Secured credit cards allow consumers to build their credit history with a major credit card by issuing a line of credit equal to or greater than a deposit that the card holder makes with the institution. After a period of time (usually six months to a year), the deposit will be returned and the credit balanced raised if the card holder has continuously made their monthly payments on time. The credit card company in turn reports your good credit standing to the major credit reporting agencies which will help you get credit in the future.
Prepaid Credit Cards
Learning to budget money is an essential skill for singles. If you are having trouble separating your spending money and bill money prepaid credit cards may be exactly what you need. Prepaid credit cards allow you to deposit money onto a card that can be used exactly as you would a standard credit card. Prepaid credit cards are also the perfect gift for a family member that lives across the country or that hard to buy for colleague at the office.
Poor Credit/Bad Credit
Many people make mistakes with their finances when they are young which can have negative effects on their credit. If your credit score is a bit on the low side or you have a history of late payments then a credit card geared towards those with poor or bad credit may be exactly what you are looking for. There are a number of companies that specifically offer credit cards to those with less-than perfect credit that will help them raise their credit score as long as they meet the requirements set by the credit card company such as making monthly payments on time. As the credit card company reports to the credit agencies it will raise your credit score which will allow you to qualify for standard credit cards down the road. The downside to this type of credit card is that there are usually higher interest rates and monthly charges.
Building a strong credit history is essential for singles if they want to get a loan for a vehicle or purchase a home in the future for themselves or when they begin to plan a family. Poor credit can also lessen the chance of getting hired by some companies or even renting an apartment. For this reason it is important for singles to make at least the minimum monthly payments on time, every time. While making your minimum payments on time will build your credit, it will not lower the balance on your credit cards. The minimum payments usually pay only the accrued interest and a small portion of the principal. For this reason, you should make more than the minimum monthly payments whenever possible to ensure that you have money available when you need it in the future.
About the Author: Paul Basco Provides Expert opinions and reviews to help you Compare and Apply for a Credit Card Offers online. At GettintingaCreditCard.com, we offer credit cards for bad credit, low apr credit cards, instant approval credit cards and much more.
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