To rebuild bad credit, you need to start adding positive information to your credit score. The more positive information you can add, the more your credit score will improve. The problem is finding credit cards to rebuild bad credit. Most credit cards on the market are for people with good and excellent credit scores. Finding a credit card to renew a loan is not always easy.
However, there are some credit cards that approve people who renew their credit.
Credit Cards Provided for Bad Credit Recovery
Secured credit cards are good credit renewal options because they usually do not require a credit check. Secured credit cards act like regular credit cards. The difference is that you have a security deposit against the credit limit on your card. The deposit is placed in a savings account and is only used if you are on a credit card by default. Otherwise, your purchases go against your credit limit.
If you have enough money to make a secure deposit, then you can get a secured credit card. Your deposit could be as low as $ 49 on Capital One Secured MasterCard. Discover a Secured Credit Card, which is a secured card, is another great option for credit renewal.
There are several other well secured credit cards on the market – the Fargo Secured Credit Card, Master One Secured MasterCard and USAA Secured Card pillars are a few examples.
Look for a secured card that reports to major credit bureaus, has low annual fees, and converts to an unsecured credit card after a timely payment period.
Other credit card options
Retail credit cards are an option, but the high interest rate and limited use make them less attractive than other credit card renewals.
If you are approved for retail credit cards, you are likely to have a very low credit line of about $ 100 to $ 300. You may be able to limit your credit limit periodically, as you use the card responsibly and pay it on time every month. A few months of positive payments with a retail card can help you qualify for something better.
Consumers with poor credit
Look out for credit cards like Applied Bank Gold Visa that charge extremely high annual fees over the credit limit – $ 125 an annual credit limit of $ 500 in this case. These reaper cards are used by consumers with poor credit, who have trouble qualifying for credit elsewhere. High costs are not worth the small benefit.
Finally, prepaid cards are a credit card or account verification tool that can be used to buy credit cards and debit cards. However, these cards do not improve your credit score – at least not the major credit scores that most lenders use to approve your applications.