Do you have bad credit? Is it keeping your from moving on with your life because you can’t get a loan, apartment, cell phone, etc.? There is a way to repair your credit by using bad credit credit cards. If you know which one to use, you can greatly improve your credit or create credit if you don’t have any yet.
Avoid some Bad Credit Credit Cards
You may from time to time see bad credit credit cards being advertised that claim to repair your credit. You can slowly build up your credit limit and your credit score. What you don’t see right away are all the fees and the high interest rate.
A high rate makes sense because they see you as a big risk, and you can avoid paying interest simply by paying off your balance each month. The fees on most of these are outrageous. There are huge set up fees, annual fees, fees whenever your limit is raised, monthly fees, etc.
The Best Bad Credit Credit Cards are Secured Credit Cards
A secured credit card acts like a credit card, but the money you are borrowing is your money. You put money down, usually at least $300, and then that money is your credit limit. If you don’t pay your balance, you are essentially paying to use your own money which is a great incentive to aviod not paying off your balance.
After usually 6 to 18 months, when the credit card company decides, you will be promoted to an ordinary card and your will get your money back. The money you put in will go into a CD or other investment during that time and will actually earn you money.
This is a great method for many reasons. First of all, it’s nearly impossible to be denied one because you are borrowing your own money. This makes it ideal for those with bad credit.
This bad credit credit card might seem like it doesn’t make sense, but the whole point of it is to build better credit. Yes, if you don’t pay the bill on time or at all, your credit will go down like any other card, but you really need to teach yourself not to do that.
Also, this is better than those other cards because the limit is as big as what you put in and fees are similar to ordinary cards not like the other outrageous fees on other bad credit credit cards.
If you want to fix your credit, get a secured card and you’ll be on your way to better credit. You can then move on to a better card and hopefully by then, you will have learned how to responsibly use credit cards.