Rebuild Your Credit With a Bad Credit Credit Card
Here’s some more information on how secured credit cards and prepaid debit cards can help you improve your personal finances moving forward...
Secured Credit Cards
What are secured credit cards? These work the same as regular credit cards, only you guarantee (or secure) your line of credit with a security deposit. Generally, you can secure as much as 100% of your credit line when you sign up. (For example, if you provide a $1,000 in credit, your credit line might be 70% of that to start.)
However, once you show the credit card company that you can make on-time payments and pay back your balance each month, your credit line may increase without an additional security deposit. Plus, in many cases your new, responsible banking will be reported to the three major credit bureaus and you’ll have full access to your credit score and reports.
Find credit cards for bad credit with low interest to get the ball rolling on rebuilding your credit score today.
How do secured credit cards improve my bad credit?
Secured cards offer your best chance to get approved for a credit card because of the security deposit they require. Essentially, secured credit cards are not only one of the best options when it comes to bad credit credit cards - quite often they’re the only option for improving your credit via a new card. We would absolutely recommend considering a secured credit card if you’re hoping to improve your fair or bad credit.
Prepaid Debit Cards
Prepaid debit cards are another kind of card for bad credit. While they don’t improve your credit score in any significant way, they are a great way to teach your teens about credit. Prepaid cards are pretty straightforward: once you’re approved (and their 100% approval rate ensure that you will be), simply load money to your card (generally performed online) and begin swiping responsibly - that’s it!
Prepaid debit cards work the same way as your banking debit card. As long as you’re keeping track of your balance, you’ll have no issue using a prepaid debit card. There’s no credit line on these cards, which is what makes them a good training tool for young adults new to credit; essentially, they can become accustomed to tracking their limit without the danger of falling into debt.