The Benefits of Excellent Credit Credit Cards
Excellent credit credit cards cater for people that have a high score. This usually means that these individuals have always made payments on time for their existing credit products, have not filed for bankruptcy or had court judgments made against them, and in general have managed their finance accounts in the correct manner.
Companies offer their best cards to customers who have excellent credit, as these people present less of a risk to them, and are far less likely to jeopardize their rating by missing a monthly payment or defaulting. These people will typically have a score of between 750 and 850.
One benefit is the zero percent balance transfers. This means that the cardholder can transfer the outstanding balance from an existing card onto their new one, and not pay any interest on it. This can sometimes be for a specified period of time (such as three, six or nine months), or may even be over the lifetime of the balance.
Another advantage is that the interest rate is usually lower. Whereas a person with an average score may be offered a card with an annual percentage rate (APR) of between 12% and 20%, a customer with an excellent rating may be given one with 12% APR or below.
Sometimes these cards will also offer cash back. This means for every dollar spent, the customer will receive a small percentage back as a refund, typically between 1% and 5%. Although this does not sound like a lot, for a big spender this can really stack up come the end of the month. Benefits can also come in the form of airline points and discount vouchers for certain retailers.
The final key advantage is that they do not usually have monthly or annual fees, again saving the cardholder money in the long term. Fees for services such as ATM cash withdrawal charges are often on the low side as well.
The only real drawback is that they are so hard to get! This is especially true in the current economic climate, with banks and other lenders unwilling to give credit out to almost anyone with a less than perfect score.
If you have a low or average score it is not recommended that you apply, as you will likely be refused, and this rejected application can adversely affect future applications.
The best alternative for many people is to find another, more suitable card, which offers reporting to the three national bureaus, and will allow you to build up your score through good financial practices.
If you do have a suitable score to be approved, take your time, do your research and analyze your options. Card companies are always willing to have customers like you, and you have the power to select a card that is of maximum benefit to you.
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