Always people are not the reason for their bad credit. Some circumstances like unexpected medical bills, un employment, sudden job loss or other economic hardships makes the people to get end up with the bad credit.

Whatever the reason may be instead of blaming yourself for the past activities, when you start to focus on your future things, you can repair or rebuild your credit easily.

As you stays with the bad credit, you can’t apply for and get approved for the standard credit card with low interest rates. What you can do is , you can apply for secured credit cards to rebuild your credit. These cards are especially designed to help people who suffers due to the bad / fair credit.

secured-credit-cards-to-rebuild-credit

But trust me, when you handle these credit cards to rebuild credit responsibly, you can get a promotion to receive the best cards available in the market.  Try to follow these 3 things and start rebuilding your credit score through secured credit cards.

Tip #1 –  As opposite to an ancient belief, you don’t need to carry forward the balances .That will not improve your credit score. Regardless of whether the borrower pay this balance in full or not, these balances will be reported to the credit bureaus as long as you keep them in your account.

Tip #2 – Always try to keep your balance 30% below to your available credit limit.  When you utilize full available credit every month, it will make the credit bureaus to understand you as a big spender. When you keep the ratio always low, it will contribute to your significant  credit score boost

Tip #3 – Once your card is approved, set up an automatic e-payment.  You may forget the payment due because of your busy schedule. But when you do set up an e payment connected to your debit account, you won’t miss out any more monthly payments. Regular monthly payments contributes to nearly 30% of the credit score boost.

Best Secured Credit Cards To Rebuild Credit I

Capital One® Secured MasterCard®

Loads and loads of people who have used this cards have given a positive feedback on rebuilding their credit.

This card carries no application processing fee and it charges low annual fee – $29%.

Options are provided to start with the very little security deposit like as $49 or $99 or $200

When the secured card is handled with care, no matter of your initial credit limit, you will be rewarded with the credit limit increase without paying any additional deposits.

Key Features

  • You can build credit with 0 application and processing fee.
  • periodical reports to all 3 major credit bureaus.
  • Provides an access to credit management tools which includes credit score monitoring tool too
  • You can make a security deposit in the range $49 to  $3,000
  • Chances for qualifying the high credit limit are high as per your credit history and account maintenance.
  • You can use this security card as the master card in almost all locations worldwide.

First Progress Platinum Elite MasterCard®

Chances for you to get hear this name is very poor. But still in the world of credit score rebuilding this new cared has got its tremendous welcome. This card is issued by the Synovus (a parent company. This company is founded in the year 1888. Its total assets comes around $26 billion. Important thing to mention here is ” this bank is not kind of fly by night”.

Key Features

  • This card carries $29 annual fee and requires a deposit of $300.
  • This card is not made available for the residents who are in AR, IA, WI or NY
  • credit limit and the security deposit goes hand in hand.
  • Provides a periodical reports to all major credit bureaus.
  • Interest rate on purchase is 19.99% ( Variable)

USAA Secured Card

If your family member serves in a military, this card will serve you as a best option to rebuild your credit.

To get qualify for the USSA secured card, the borrower somehow should be related to the military men or women.

But unlike other secured cards, you can’t withdraw the security deposit any time you want.

Once deposited your money will be locked into 2 year CD deposit.

But the main benefit you can reap when you handle the card responsibly, you will get qualify for the unsecured credit card before 2 years itself.

Key features

  • When you apply for the USSA secured credit cards to rebuild credit, the issuer will ask you series of questions. Based on the eligibility, you may either approved or denied for the card member ship.
  • Initial deposit  should be made comes around $250
  • This card charges $35 as annual fee.
  • Once deposited your money will be locked with the 2 year CD deposit account. If you want to close the account before the end of 2 year term, you will be required to pay the penalty fee.

You should consider the following factors before choosing any of the secured credit cards to rebuild credit

Reasonable Fees

As you are going to apply for secured cards, you should expect the fee, but it does not mean that it should not be a bearable one. Most of the secured credit issuers charges high fee on application fee, annual fee or monthly maintenance fee.  Make sure when you combine all these fee, it should not exceed beyond $120 for an year.

Flexible Security Deposit

Every one want to have the higher credit limits but as you are having a bad credit or no credit, at present you can’t afford such high limit on your account.  From my personal point of view, best card is the one which offers the flexibility for our own convenience.

For example a best secured credit card should allow you to increase your deposit from $49 to $3000 (Its full range).

Reports to Credit Bureaus

Purpose of opening the secured credit card account is ” boosting your credit score. So make sure whether the secured card you are going to sign up make a periodical reports to all 3 credit bureaus. Stay away from the banks who don’t reports even their customers to the credit bureaus.

The bottom line

Remember, if you suffer with the bad credit or bankruptcy then secured credit cards to rebuild credit is your only best option. Luckily this card type is also serves as the best credit card type in the world. Handle the secured credit card responsibly and get qualify for the unsecured credit cards.

Leave a Reply

Be the First to Comment!

Notify of
wpDiscuz