It’s not uncommon for people with less-than-perfect credit to see higher interest rates on credit cards, but that can be a recipe for debt when you’re paying an annual fee. If you make your monthly payments on time, it may be possible to reach a higher credit limit in as little as six months without putting down more money. Depending on your qualifications, you may qualify for a $200 credit limit for as little as $49 for a security deposit. To increase your credit limit, consider instead: You can get the same credit limit opportunity with a low-cost card like the Capital One Platinum Secured Credit Card. That’s a high limit for a card in this class, but it’s not pricey enough to overlook some of the card’s other shortcomings. After that, your account is reviewed periodically to increase the credit limit up to a maximum of $3,000. The good news is that the Cerulean Credit Card allows you to double the credit limit on the card if you make the minimum payments on time for the first six monthly billing cycles. Experts recommend using no more than 30% of your available credit limit, but in the above scenario, you’re already at about 42% before you swipe your card. This affects your purchasing power, but it also has an impact on your credit utilization ratio, which is the percentage of available credit you’re using (a major factor in your credit score). For example, you may initially qualify for a $300 credit limit, but when you take into account the $125 annual fee, you’re actually starting with a $175 credit limit until you pay that do not pay the fee. And the card’s annual fee will compound that problem. Have a potentially generous credit limitĬredit limits for Cerulean credit cards range from $300 to $1,000 depending on eligibility – but if you have bad credit, you should expect to qualify for a limit on the low end of that range. After six months of holding the card, you are also considered for an automatic credit limit increase. It also earns 1.5% cash back on most purchases, making it easy to get some monetary value back while your security deposit is tied up. For a lower fee, consider instead: The Capital One Quicksilver Secured Cash Rewards Credit Card requires a minimum $200 security deposit, but you can earn it a good deal after you close the card or upgrade to an unsecured card with the same issuer. But with the Cerulean Credit Card, the $125 you pay each year is gone forever. After account closure, you will get back that deposit amount with good payment history. If you can afford the $125 annual fee to have a Cerulean credit card, you might be better off saving the security deposit on a secured credit card. Cardholders can expect the following charges: While the Cerulean Credit Card doesn’t tack on a monthly “maintenance fee” like some other cards in its class, its annual fee should be enough to make you reconsider things. Here’s what you need to know about this card and about less expensive options for your credit-building goals. But there are less expensive options that can help you build credit. Compared to some other unsecured credit cards for bad credit (FICO score of 629 or lower), it has low overall fees. All of the features look solid until you get to the hefty annual fee and hefty interest rate. It’s also a MasterCard, so it’ll be widely accepted, and your payments are also reported to all three major credit bureaus, a must-have in any credit-building journey. Issued by Bank of Missouri and serviced by Continental Finance, the card does not require a security deposit and offers potentially generous credit limits. 5 things to know about the Cerulean credit card – NerdWalletĪt first glance, the Cerulean credit card may sound tempting if your credit is less than perfect.
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