What is a credit builder card?
This is a credit card designed for people mainly with no credit history or low credit score. This card helps them get back on track mainly in instances when one has been denied credit.
Lacking a credit history the smartest move anyone can make is building credit this is by opening a credit-builder account and not only that but by practicing responsible financial behavior
Instances you can be denied credit
Low income.
Jobless or no defined job status.
Credit builder basics
Credit builder card as your debit card
You can use your credit builder card for any purchases you want; from paying for your groceries, gas, using it at your favorite food joint, and purchasing at clothes and shoe stores.No purchase is limited and all purchases help you build your credit.
The amount to transfer to your credit builder card
There is no limit or stipulated amount when it comes to depositing to your credit-builder account, but to grow your credit you can decide to transfer your monthly budget purchases to your card.
Credit builder card on your credit score
Using your card can build your payment history,increase your credit history length and balance out your credit mix
Three main credit card products looked up
A Nexo card; is a credit card linked directly to your nexo account and provides access to your account without having to withdraw them from your bank account.
Gemini credit card; this card allows you to earn up to 3 percent back in bitcoin or any other cryptocurrency on the dollars you spend to pay for something.
Bitpanda visa; you can use this card where visa and debit card payments are authorized you can use it as a physical card or online card.Although it’s a crypto card you can use it to pay for your coffee imagine paying for your coffee in bitcoin.
Can you use your credit builder card at an ATM?
No, you cannot use the credit builder card to make ATM withdrawals. But you can use it to make all kinds of purchases you need from gas, groceries, and at convenience stores like supermarkets.
Factors to consider to choosing the best credit builder card
Security deposit minimums; in case a client has to make a deposit it should be in reasonable amounts one where someone can easily afford higher deposits stress clients.
Fees; choose a card with no fees or low fee rates choose a card with no annual fees.
Reward programs; choose a credit builder card with rewards like cashbacks after making purchases, welcoming bonuses, etc.
APR; this is the annual percentage rate this is putting into consideration making payments on stipulated time to avoid higher penalties choose a card with no interest rates or low-interest rates. Check out their grace period this is in terms applied to credit card purchases and choose lower rates.
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How credit cards can improve your credit scores
Keep your credit card active; use your card often and make your every purchase with it.
Spend small amounts; do not make exaggerated payments use your money responsibly.
Pay your monthly bill dedicatedly; do not default your monthly bill, pay it on time it helps you build trust with your credit card service provider.
