Thursday, September 23, 2010

Different Credit Cards Do Help Build Credit Scores

Types of Credit Cards and How They Affect Credit Scores :
  • Traditional Credit Card - The most commonly used card. The consumer is extended a line of credit by a financial institution and they are expected to make at least minimum payments on an agreed-upon schedule
  • Secured Credit Card - This card requires the consumer to secure it with a deposit and may report to all three credit bureaus
  • Prepaid Credit Cards - These are comparable to debit cards, except that they are not linked to a bank account.

NationalCreditReport.com published this list with extended information on what card is best for the consumer. The list is meant to help people determine which kind of card fits their needs before they apply for new credit.

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