Having a low credit can be really stressing and it can impact your future. With a bad credit you might not be able to receive any loans in the future and this can be a major inconvenience. While there are many ways to improve your credit, most of them can be quite difficult and not that pleasant. But there is one exception.
Travelling might be an unexpected way to improve your low credit scores. You can do that by using travel rewards cards. Even if you do not have the best credit score you can still get one of these. Here are some things that you should know.
How do travel rewards cards work?
Travel rewards cards will come with points and rewards for travelling. For example, if you are in the subprime credit category and your score is 550 – 620, you can find a few options that are available for you.
If you like to drive a lot you can find a credit card which lets you earn 2x points on gas. Barclaycard Rewards MasterCard is a good option, and you can also get access to your FICO score, which means that you will also have a chance to rebuild your credit.
If you have an acceptable credit, which means that you will have more options than the others. You will even be able to get premium travel rewards cards, which come with numerous offers. You will even be able to enhance your credit by creating a good relationship with top card issuers.
There are certain cards that will give you 1.5% cash back for all your purchases and a 20% statement credit on all Uber rides.
Learn the difference between FICO score and credit score
Most people are not really aware about the difference between FICO score and credit score, despite the fact that it is really important to understand how these things work. While the FICO score does determine if you are able to become a lender for most borrowers, the FICO score is not the only thing that determined the credit score.
Your credit is report is determined by TransUnion, Equifax and Experian, three major credit bureaus. They are the ones that determine if your credit score is good and if you are wondering what is an excellent credit score you should know that they take into account all your past financial transactions and your history of borrowing.
When it comes to FICO Score vs Credit Score, you should know that while FICO is a type of credit score, it is not the only one. Each lender analyses things differently and they are the one that decide which credit score they will take in to account. In some cases, these scores might even differ, since the information can be taken from different sources.
Ultimately, all credit scores are based on the same information, but each one analyses in it in a different way. This way, lenders will get the details that they need in order to make a choice, since each lender needs different information.