You have a lot of options when it comes to credit cards used to rebuild you credit history. You would think that the opposite would be true. But there are a lot of companies who aim at consumers with bad credit.
The key is avoiding the unethical companies. Some will be looking to charge inflated fees for cards that won’t help you rebuild credit history.
We need to separate the types of cards and see what options help you rebuild credit history. Here are the three categories.
1. Catalog clubs that issue so called “credit cards” for people with bad credit. These companies are pedaling overpriced products. The cards they issue can only be used to purchase their products. The only good part is that they do report to credit bureaus. This will rebuild credit history. This is an expensive way to go.
2. Rebuild your credit history with prepaid credit cards. This option is not really a credit card. These are most like a debit card. They have a Mastercard or Visa logo but are only good for the amount you have preloaded on them. When the balance gets low you just reload the amount you want on them. There is usually a fee associated with them. They are available at major retailers.
3. The best way to rebuild credit history-secured credit cards. Secured credit cards are issued by companies that require you to make a deposit in their bank. The deposit acts as collateral in case you miss a payment. They report to credit bureaus just like other credit card companies because you are buying on credit. This is the best way to rebuild credit history. The credit limit on these cards start at the amount of your deposit. When you have established a history with them they may raise your limit to a percentage of your deposit. For example 150% or 200%.
There are a wide range of fees from these companies. So compare them carefully. You can expect to pay some fees, but it will be worth it to rebuild your credit history.
More information on other aspects of rebuilding your credit history can be found located here Credit Repair Information. Tlocated here is also a More free report located here.
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