Gas station and department stores credit cards are a great way to
rebuild your damaged credit report. These types of credit cards are
easier to get than most bank issued cards, and so if your credit
history is shaky (or nonexistent), you might try applying for one
these.
Once approved for one of these cards, you should take care and use
them in a way that will improve your credit rating, and not hurt it.
For instance, you should always pay your bills on time, and try not to
let a balance carry over to the next month. (Sometimes this will be
unavoidable, but do your best.) Remember these cards, just like any
other, are open lines of credit, and the more lines of credit that you
have on your credit report, the less likely anyone else will be to
extend you credit.
After you have paid your bills on time for an extended amount of
time, it should make a positive impact on your credit report. At this
point, you can either decide to keep the card, or cancel it and apply
for a more universal card such as Mastercard or Visa.
As with any credit repair tool, there are pluses and minuses to
these types of cards, and you should think about each one of them
carefully before deciding to apply.
The Fringe Benefits
With a gas credit card, you may get other benefits besides just
being able to charge a tank of gas. Most gas stations also have repair
garages, and so if your car breaks down and you don't have the cash to
fix it, your card could play an important role. In addition, most gas
stations have stores or restaurants inside, and if you are short on
cash, they could come in handy. Finally, some gas station credit cards
offer discounts on travel for things like rental cars, hotels, or
insurance. You should shop around for the card that will offer you the
most benefits.
A department store credit card can offer just as many benefits.
Because the very meaning of a department store is a place where you can
buy just about anything, you will be able to use your card for many
things. In addition to things for your home, such as washing machines
and dryers, stoves and refrigerators, many department stores also offer
car repair shops and electronic stores. It's important to not get too
carried away and find yourself in debt! After all, getting this card is
a mission of credit repair, not credit destruction.
The biggest drawback to both gas station and department credit cards
is the interest rate. In both instances, you can expect to pay a higher
annual interest rate than a normal bank issued card. However, if you
use the card wisely and pay off the balances every month, this
shouldn't be a problem for you.
In summary, a gas station or department store credit card may be for
you if you use it wisely and make sure to pay all of your charges in a
timely manner.
Summary
- A gas station or department store credit card is easier to get than a bank-issued card
- By making regular and timely payments on this card, you can build or rebuild your credit
- When choosing which store to get your card at, consider the extra benefits that come with the card