If you are a freelance, these 5 credit cards are convenient for you

CITY OF MEXICO.- In Mexico, 96.5% of the population is economically active (PEA).

Of these, 68.9% are employed as subordinated and remunerated workers occupying a job position or position; 22.3% work independently or on their own; 4.5% work in family businesses and only 4.3% are employers or employers, according to data from the National Occupation and Employment Survey (ENOE) of Inegi.

“Access a credit card if you work independently or have a business is already possible, banks have developed plastics with low requirements and are ideal for all people who do not work permanently in a company” says Bernardo Prum, director comercial at ComparaGuru.com

The options offered by banking institutions for these people are:

Low Credit Cards

In these cases, users can choose the cut-off date, a lower rate of interest, no commission or annuity payment and access to promotions and exclusive offers with the bank.

In addition, they accumulate points for all purchases made with plastic and can exchange for items, experiences and travel. In general, this type of card is the basic or classic of each bank.

Departmental Cards

These are the plastics offered by department stores, with which you can pay for all the purchases you make and access promotions and exclusive discounts at the store. These plastics should be requested directly from the store and require low requirements.

Secured Credit Cards

They are ideal for people who have no relationship with the bank, the credit limit that is accessed is the money that the customer deposits in the account, which works as a guarantee.

Among the credit cards recommended by ComparaGuru.com for people who work on their own are:

  • American Express Basic American Express Credit Card
  • Santander Free of Santander
  • Citi Banamex Classic Credit Card by Citi Banamex
  • Scotia Basic Scotiabank Credit Card
  • HSBC Classic HSBC Credit Card

Guide to Secured Credit Cards

Having a great credit score is rewarding in many ways, from being able to get a good mortgage to receiving affordable rates on a car, and even qualifying for credit cards with more perks. Achieving that score, however, is not always an easy journey.

Unexpected and emergency payments can veer savings and payment plans swiftly off course. This can result in the inability to pay back loans as planned, leading to a decimated credit score. Suddenly, receiving approval for credit cards with decent interest rates is nearly impossible. Or maybe, circumstances aside, you have never even had a credit score at all.

One smart solution is to seek out a secured credit card. These cards help with a damaged credit history, or work toward building a score for the first time.

WHAT IS A SECURED CREDIT CARD?

A secured credit card can be defined as a middle ground between a debit card and a traditional credit card. As opposed to most credit cards, a secured credit card offers a line of credit defined by a security deposit. In other words, your credit limit is nearly always equal to an amount of money designated by the bank and deposited into the account when you open the card.

For instance, if you are granted a secured credit card with a spending limit of $300 dollars, you must first put that same amount into the account. This way, the bank, credit union, or credit card company issuing the card receives your trust in the form of that initial deposit.

Like a credit card, you can utilize it for purchases or bill payments, and pay it back every month. Over time, you may be able to put more money into the account, thereby raising the credit line. Working toward rewards is also a possibility for many of these secured credit cards.

HOW TO FIND THE SECURED CREDIT CARD FOR YOU

As getting a secured credit card is often about saving money over time and building up credit, it’s important to put the research in to find the right card for you.

The annual fees for secured credit cards range from $29 to $99, though some cards don’t even come with annual fees. Be sure to find the best rates annually, and on late fees, which can range from $25 to $35. APR and interests rates may be higher for some of these cards, as they are not designed to be used for longer stretches of time, so also endeavor to find the lowest rates, the goal being better financial standing, not being crushed under numerous fees.

Some cards even request an application fee. It’s best to filter those out. Be sure to always read the fine print.

Of course, there are perks to watch for as well. A number of secured credit cards may come with no international transaction fees (the average is 3%), as well as travel insurance and coverage for car rental.

HOW TO BUILD CREDIT WITH YOUR SECURED CREDIT CARD

A compelling reason to get a secured credit card is to build an entirely new credit score from scratch, or salvage a suffering credit score. Building a solid credit score within the 600-700 range is well within reach with a secured credit card, and will qualify you for a traditional credit card.

The basic rule of thumb when repairing bad credit or building new credit is to spend no more than 30% of the credit limit, and pay it right on time. The secured credit card is not a prepaid card you can deposit more cash into after spending the balance. As well, the limit is normally $200 to $300, so it’s hard to incur dangerous levels of spending anyhow.

One tip would be to take a monthly bill that costs 30% or lower than your credit line, and paying it with the secured credit card. This ensures you have a correctly calculated purchase once a month that must be paid on time anyway. As well, figure out smaller purchases you make on a regular basis, such as lattes and streaming service subscriptions, and pay for them using the card. So long as you remain at or under the 30% and are prompt with your payments, your credit score should improve within a few months to a year.

To ensure the secured credit card purchases and payments are being reported to the credit bureau, also occasionally check your credit score. Once a year you can go on annualcreditreport.com and pull your Equifax, Experian, and TransUnion scores to make sure you are on the right track.

Remember, once you have utilized the secured credit card for its intended purchase, you can always transition to traditional credit card use, have the deposit returned, and enjoy a high credit score and newfound confidence in your budgeting, spending, and savings practices.

What Are Unsecured Credit Cards?

Unsecured credit cards They are not secured by collateral. That means that unlike secured loans, such as mortgages or auto loans, unsecured credit cards are not directly connected to property that a lender can seize of the cardholder fails to pay. After using your credit card responsibly for several months, you may be able to convert to an unsecured credit card. If approved, your credit card issuer will refund the security deposit to you. However, you should be aware, it can take 12 to 18 months to be considered for an unsecured credit card. Secured credit cards can offer the chance to establish credit or rebuild it. They are easier to qualify for than unsecured credit cards — also known as regular credit cards — because they require a security deposit. Your credit determines which option is best for you. Got bad credit? You can still get an unsecured credit card to build your scores back up. Unsecured credit cards are the most common type of credit cards. Besides the rewards programs and lack of collateral to pay, there are many advantages to having an unsecured credit card. The ability to have an unsecured credit card and pay it back diligently, makes you look like a reliable customer to many creditors. If you’re in the market for a new credit card, you’re probably doing some research ahead of time, which is smart. And you’re probably realizing that there are a lot of cards out there — travel cards, cash back cards, hotel rewards cards, gas cards — the list goes on and on. And it can get .

Unsecured credit cards for bad credit do not require a security deposit for approval. But that doesn’t make them better than secured credit cards (some offers are from WalletHub partners). See “2018’s Best Unsecured Credit Cards” as reviewed by experts. Get approved online with no credit, fair credit, or bad credit. No deposit required! What is the difference between secured and unsecured debts? the credit card company is Because one’s investment in them is backed only by the reliability and credit of the issuing entity A consolidation loan to pay off credit cards or a signature loan from a bank would be considered unsecured term loans. There’s ample data to suggest that the modernizing unsecured loan market is .

What Is Unsecured And Secured Credit Cards?

Secured credit cards can offer the chance to establish credit or rebuild it. They are easier to qualify for than unsecured credit cards — also known as regular credit cards — because they require a security deposit. Your credit determines which option is best for you. Unsecured credit cards are the most common type of credit cards. They are not secured by collateral. That means that unlike secured loans, such as mortgages or auto loans, unsecured credit cards are not directly connected to property that a lender can seize of the cardholder fails to pay. Issuers of unsecured cards must make use of other means — such as the courts or garnishment — to collect unpaid debts. Discover what the difference is between unsecured credit cards and secured credit cards, and how secured credit cards can help those with poor or no credit. A secured credit card is a credit card that requires a security deposit. Secured credit cards are generally for individuals whose credit is damaged or who have no credit history at all. Your credit line will most likely represent anywhere from 70% – 100% of your security deposit, depending upon your credit worthiness. Credit card debt is the most widely-held unsecured debt. Other unsecured debts include student loans, payday loans, medical bills, and court-ordered child support. Want to build your credit? Here’s what you need to know about the difference between secured and unsecured credit cards in the United States.

Secured Debt. Secured debts are those in which the borrower, along with a promise to repay, puts up some asset as surety for the loan. For a debt instrument to be secured simply means that in the event of default, this asset can be used by the lender to repay the funds it has advanced the borrower. Learn the differences between secured and unsecured credit and how they differ from other loans with this video from Better Money Habits. If you’re in the market for a new credit card, you’re probably doing some research ahead of time, which is smart. Secured credit cards are an option for those Opportunity to Graduate to an Unsecured Card. Many secured credit card issuers define clear graduation.