As consumers, we all aspire to present a good face to lenders by means of having a good record in terms of credit. When lenders review our credit history, they will see the activities and trends we make from time to time. It can be used to gauge how well we manage our finances and in return, they can have the assurance that their consumers will not just run from the money they have invested on you.
It is important to note that having no credit is a personal choice. If there is no purchase made at all, then there is no need to worry about having to pay for a debt. However, there will be zero movements on the account; meaning, one will have no credit history at all. When that happens, it will affect the financial status of the person and complications in future transactions may occur.
For starters, it is crucial to know the benefits of credit cards for no credit first before becoming legally bound to a contract. Listed below are just 7 of the many pros of getting credit cards for no credit:
Fast application turnaround time
Compared to conventional credit cards, the approval time for those who have no credit is faster. New members with no credit history will not become frustrated but instead gain self-confidence. Beginners will be asked by the lender to make security deposits together with their application to secure the money that will be borrowed from them.
Credit Bureau Reporting
Credible credit cards are far excellent from those that are prepaid. Since the lender will send reports about your account history to the Credit Bureau, you can be assured that you are on the right track. The Credit Bureau is a higher department which oversees your account, keeping it safe from fraud while monitoring how well you balance your funds.
Credit is built with a solid foundation
When you want to steer clear from the list of delinquent accounts, you must make on-time payments and manage your account wisely. For members who are just starting to establish a good credit history, one must not miss or delay any payments to have a good credit score. Credit scores are what we see on the account after making transactions. This is where people will see your creditworthiness.
Avoid calls from the collections department
Another advantage of having credit cards for no deposit is that you will have to worry less especially when there is a security deposit. Failure to make a payment leaves the lender the right to deduct an amount that security deposit. This will prevent you from receiving bothersome calls from customer service representatives from Collections and debt collecting agencies.
Earn money from deposits made
People who spend their money wisely like those who do not allow their accounts to have an outstanding balance will have a tall chance of earning dollars. This will depend, however, on the account’s activities. For them to learn more about the rewards they can enjoy from it, they can seek for clarification from the specialists.
Salary is not the focal point
People should be wary of the kinds of Benefits of credit cards for no credit they can take advantage of in order not to lose their hard-earned money in the process. Take note that even if you are employed, it does not mean that you have established a good credit score. The salary itself is not a basis when rating a person’s credit score but a regular payment is. This improves your sense of responsibility while avoiding bad habits like being lax on making payments.
A chance to prove oneself
Having an average income does not mean that clients with higher income have better credit scores. In fact, it really depends on how people manage the flow of money on their account. There are times when borrowers who have low income have less balance in contrast to those with high paying jobs who have delinquent accounts. This gives a fair chance to those people who do not earn that much to prove themselves in the world of finance.
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