This work discusses credit cards for rebuilding bad credit. A lot of card holders have very bad credit history and score. Many are even confused on how to rebuild their credit. If you have bad credit score and history, this work is for you. Carefully read through it.
To start with, you need positive information on your credit score. Start supplying them. You can start by paying your balances in full monthly, avoiding late payments, and charging what you can afford. What credit cards can help you to get out of this mess? Do not worry, there are credit cards built majorly for rebuilding credit. Let’s talk about them.
Using secured credit cards are the most ideal ways of rebuilding credit. Interestingly, they have no credit check. They are closely related to debit cards. However, they are different because you will make a security deposit against the credit limit on your card. This security deposit can only be used when you default on your credit card. If not, your purchases go against your credit limit.
What are you waiting for? Apply for a secured credit card, male a security deposit and start rebuilding your credit. Amazingly, he deposit must not be very much, it could be as low as $49 on the Capital One Secured MasterCard. Discover it also offers Secured Credit Cards.
Moreover, other options in the market include – Walls Fargo Secured Credit Card, the Capital One Secured MasterCard, and the USAA Secured Card are a few examples. However, ensure that the one you are applying for reports to the 3 major credit bureaus. Carefully search for the one that converts to an unsecured card after building your credit and the one that has low annual fees
These cards are also good for rebuilding credit. But they have high-interest rate. They are not also used for purchases from different retail stores. and limited use make them less attractive than other credit cards for rebuilding credit. It offers a low credit limit to its cardholders. However, if you spend wisely with the card, they can increase your credit limit periodically. Consistently making improvement on your card can help you get approval for a better credit card.
Additionally, always review the card terms and condition before applying. Certain cards like Applied Bank Gold Visa have very expensive annual fees and low credit limits. Instead of applying for a card that will greatly cost you, simply go for a secured credit card you can afford.
In conclusion, whether you use secured cards or retail credit cards, do not forget to do the followings:
- Pay for balances in full monthly.
- Ensure prompt payments to avoid paying late payment fees.
- Avoid overspending and any other delinquency.