Merchandise credit cards are an alternative way to build credit. These cards can only be used to purchase items inside the companies catalog. What is nice about this is that they give large lines of credit and some of them report to the credit bureaus. They are also extremely easy to get. Most don’t require a credit check. What are the benefits of merchandise cards? Consider this list:
Guaranteed Approval. As mentioned above, you can look for merchandise ccards that offer approval for all types of credit – bad credit or no credit history. This way, you can be sure that your application will not be declined, saving your credit score from further damage.
Large unsecured credit line. This means no security deposit required. Despite your poor credit score or having no credit history, you can enjoy a generously large credit limit which can range from $2,500 up to $10,000.
Purchase merchandise you need. As the name implies merchandise credit cards allow you to make purchases from the issuer’s catalog. Which means this card can only be used with the merchant issuing the card. You can’t use it to buy from any shop or establishment as you would a regular credit card.
Build credit. Since these cards are guaranteed approval, they don’t check your credit. They offer quick approval and large unsecured credit lines. Some merchants call these cards guaranteed approval catalog cards. Whatever name they go by, merchandise cards can help you in rebuilding your credit score. Just be sure to look for an issuer that reports to the major credit bureaus. By using the card regularly and making your payments on time, you can prove your credit worthiness and quickly boost your credit score.
Zero or low interest rate. Most of the time, credit cards that are used to improve someones credit tend to have very high interest rate. Many merchandise cards offer 0% introductory APR for as long as 12 months which is something you can take advantage of. Don’t forget to check the regular rate when the introductory period expires. You can even find merchandise cards that offer 0% APR for life.
Perks and privileges. Merchandise credit card holders can also enjoy special perks and privileges provided by their issuer. For instance, you can enjoy exclusive discounts from your purchases, free shipping services, free gift cards, free credit report, credit monitoring service, ID theft protection, and more. Be sure to check the complete Terms and Conditions before signing up so you can be aware of your privileges and limits.
About the Author
Tara Tiemann is the credit specialist for http://www.go-prepaid.com. Which is a resource site for people who want to live debt free! If you are on a budget, using a bad credit credit card and merchandise credit cardscan save you big money!