Building Credit with Gas and Department Store Credit Cards

When it comes to building credit or improving bad credit, you have more options available to you than you might think.  While you can apply for a prepaid credit card or a card for bad credit to start the rebuilding process, you might first consider applying for a gas credit card or a department store credit card instead.

Department Store Credit Cards

Retail or department store credit cards are very easy to apply for and virtually anyone who applies will most likely be approved.  While there are some significant downsides to retail store cards to be mindful of, not the least of which is very high ongoing interest rates, using them is also one of the quickest ways to improve your credit and start building a credit history.  In fact, you can generally get approved for a department store credit card on the same day you apply for one and you often get a great discount at the same time. 

One of the best tips to using a department store card is to make sure you pay off the balance when the credit card bill arrives.  Otherwise, you may find yourself paying out quite a bit in finance charges. Also, keep in mind that credit limits are usually pretty low on department store cards, particularly for those with bad credit or with no credit, so make certain you don’t spend beyond your credit limit.

Gas Credit Cards

Another card that’s usually pretty easy to obtain is a gas credit card.  Just as with department store cards, you can usually get your gas card very soon after applying for it.  In addition, using a gas card can help you earn some great rewards, including discounts on gas. 

While many gas card rebates may only been good on purchases made at a particular gas retailer, some come with additional benefits.  For example, you may be able to receive discounts on car insurance, hotel stays and even rental cars.  But clearly one of the the best reasons to get a gas card is the fact that it’s fairly easy to get and can help you improve your credit rating quickly when used appropriately.

Don’t start applying for every gas card and department store card you see, as having too many inquiries into your credit report will only hurt your credit score.  Rather, choose the one department store and one gas card that you think you can get the most use out of and apply for that one card.  After you have used the card for several months, you should be able to apply for a regular credit card that offers better terms and rates.

Related Posts:

• Be Careful with Department Store Credit Cards - If you are someone that gets weak in the knees when shopping at the mall or can’t pass up a discount or...
• Benefits and Drawbacks of Department Store Credit Cards - Every time that you go to make a purchase at a department store, the cashier at the counter offers you the opportunity...
• Predatory Lending Practices of Department Store Credit Cards - If you have ever gone shopping at a department store, you’ve likely been tempted to sign up for one of their department...
• The Good, the Bad, the Ugly of Department Store Cards - It’s nearly impossible to go into a department store and not get asked the famous question “Will this be on your [name...

Tagged as: department store credit cards, Security & Technology