If you need to repair your credit, you can obtain a secured credit card to build your financial reputation over time.
Secured Credit Cards Keep Your Credit Going
This leads to plummeting of your credibility in the financial world in terms of “Credit score” or “Credit history”. So it is a matter of great concern and all possible efforts to get out of this catch -22 situation are a must. However, one should not lose hope as there is always light at the end of a tunnel and so are there ways to rebuild your credit too.
Secured credit card procured against a deposit kept with the banks as security works almost like a regular card and helps rebuild your credit. But just like the regular credit cards, there are a set of features to be pursued in an ideal security card as well. Go for a security card duly affiliated with the credit bureaus. Also since anyone opting for these is understandably not in the best of financial situations, an ideal security card should not cost an arm and leg and should after a stipulated period of regular payments automatically transform into a regular card or entitle the user to one of these.
The advantage of these cards to the lenders is the lesser risk in case of default as a security amount is already with them to take care of it. Apart from the security cards which are most popular for credit rebuilding, there are some other less preferred options like retail and prepaid cards. The interest rates and the restricted purposes for which retail cards may be used somehow makes them the last choice for credit rebuilding. Prepaid cards too do not match the security cards in popularity for the biggest drawback with them being that they fail to add positive points to the credit history of the user. Hence while these may be used like the regular credit or debit cards but are definitely not suitable to rebuild credit.
1. A positive credit score is one of your valuable credentials.
2. In case of default, rebuild your credit with the security credit card.
3. Make sure that the payments are made on time and regularly to avoid further dip in your score.