One of the best ways to rebuild credit after a tough financial time is with responsible credit card use. Some companies offer secured credit cards to people with credit challenges. Some offer cards that just have a little lower credit requirements than others. Either way, if you’re going to choose this type of credit rebuilding tool, you may as well pick one that offers some perks, right?
Rewards Cards Fair Credit
So, what are rewards cards? Rewards cards are credit cards that offer rewards for purchases you make on the card. For example, some cards offer airline points for certain airlines and others offer points you can collect and cash in for merchandise or money. The most common types of rewards these companies offer are cash back rewards earned on purchases made in featured stores. Each has its own perks and benefits, but you should always weigh them against fees and interest rates to decide which is the best option for you.
Southwest Rapid Rewards VISA
The Southwest Rapid Rewards VISA is perfect for people who love to travel. They offer 2 points for every dollar spent on the card at Southwest Airlines including airfare, hotels and rental cars. And you will get 1 point for every dollar spent on every other purchase you make on the card. All these points can be cashed in for more Southwest travel and they are unlimited.
USAA Rewards Signature VISA Card
The USAA credit cards offer its customers a way to honor the U.S. military with cards that display the various branches. You don’t have to be affiliated with the military to apply, but they do offer special features for those who are, including a special low 4% interest rate during deployment. This card offers 2,500 bonus points with your first purchase, plus additional bonus points for promotional purchases. These points can be saved up and cashed in for travel, cash, merchandise or donations to our armed services. They are also unlimited.
Bank of America Student Travel Card
If you are a student of any age, you can use this card to help build a solid credit history. The Bank of America Student Travel Card offers a whole lot of rewards points including 1.5 points for every dollar you spend and they never expire. You can also earn 20,000 bonus points if you make “at least $1,000 in purchases in the first 90 days of your account opening – which can be redeemed for a $200 statement credit toward travel purchases.” And the cool thing about this card, in my opinion, is that you’re not stuck with one airline or travel company. You can use it for travel with Southwest, United, American Airlines, or literally any company you want to.
Discover it Miles
If you are not a student, but would still like a card that earns you travel miles for any airline you want to use, the Discover it Miles card is the way to go. This card earns you 1.5 points for every dollar you spend on the card and the points never expire. But what’s unique about this one is that at the end of the year, they actually match all the points you’ve racked up. If you think about it that way, you actually earn 3 points for every dollar you spend, which can add up to some pretty major rewards!
Discover it Card
I mention the original Discover it card in case you’d rather have a credit card that offers cash back instead of travel miles. Discover it offer some of the best cards because they don’t differentiate between customers with bad credit or customers with excellent credit in terms of their rewards. This card offers 5% cash back if you buy from stores they are promoting at the time of your purchase, and 1% cash back anywhere else. They also match your points on this card at the end of every year.
Capital One QuicksilverOne
Capital One offers a flat 1.5% cash back on all purchases made on the QuicksilverOne card. They also usually offer promotions every quarter, like 50% cash back on subscriptions to Spotify or 25% cash back on Directv. If you are planning to make those purchases anyway, it’s worth checking their promotions when you apply to see if they’re offering one that will benefit you.
That’s a Wrap
Don’t settle for a credit card with mediocre terms just because you have had some credit challenges in the past. Do your homework and find out what these companies have to offer and always compare the various interest rates. While they’re a great way to build or rebuild credit, don’t get stuck with a card that will drain your finances and put you back in a bind.
If you’re going to use a tool like a fair credit credit card for repairing your finances, you may as well reap the benefits that come with it!