What Are "Good Credit" Credit Cards?

By Mark Newman

"Good credit" credit cards are available for those who qualify. Haven't heard of "good credit" credit cards? Well, then, read on.

Perception is everything! Companies will always sell to those people they "perceive" as being good customers. For credit card companies, this means that you have a good credit history, you are reliable, and you always pay your bills on time.

The people who are perceived to be a good credit risk will be offered the best credit cards. These cards will include the best rates and the best incentives and bonuses. These "good credit" credit cards offer incentives such as low annual percentage rates (APRs), cash back bonuses, and no annual or monthly fees.

If your FICO score is 650 or above, credit card companies will consider you a "good" credit risk and will seek your business. If you don't quite fit into this category, keep reading to learn how you can.

If you like to carry a high monthly balance on your credit card, you can save hundreds, if not thousands, of dollars every year by having a "good credit" credit card. How is this possible? Well, if you calculate the amount you will save by having a low APR, little or no monthly fees, and no annual fee, it's not hard to imagine the money you will save each month alone. The amount saved on interest charges by itself can run into hundreds of dollars if you have a "bad credit" credit card.

If you currently are not eligible for a "good credit" credit card, you can do some things that should, over time, help you to obtain one or more of these credit cards. Good financial practices will go far in this endeavor. You will need to pay your bills on time (every month), lower your income to credit ratio (pay off in their entirety, some, maybe even all, of your bills, excluding, of course, your monthly living expenses), and stay within your allowed credit limit (do not overspend).

Following the steps outlined above will help you to improve your financial standing and you will see your credit score increase bit-by-bit. Over time, your credit rating should reach a point where you will be able to apply for one of the "good credit" credit cards.

Keep in mind, though, that until your credit score is 650 or above, you should wait to apply for one of these cards. The reason for this is that if you apply and are rejected, the rejection will be reported on your credit report, thereby decreasing your credit score. You don't want to undo what you worked so hard to accomplish.

After you have been practicing better spending habits and good financial practices for a while, you should access your credit report to make sure that your efforts are paying off. You may obtain a copy of your credit report from each of the three major credit reporting bureaus - Experian, Equifax, and TransUnion. These credit reporting bureaus are legally required to provide, upon your request, one free credit report per year.

Rebuilding your credit is worth the time and effort! Get started today!

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