Bad credit is not a road block. You can rebuild your credit history using credit cards. There are a lot of companies in business to serve the bad credit market.
Unfortunately not all of them are honest and are looking to take advantage of people who are desperate to get a credit card that can help them rebuild credit history.
How do you know which ones to trust? First lets look at the three types of cards and how they may help you rebuild your credit history.
1. Clubs disguised as credit cards for people with bad credit. These clubs or catalogs issue cards that can only be used to purchase their products. The good news is that they will report to credit agencies. Which will help to rebuild credit history. The bad news is that the products are often overpriced. This is an expensive way to rebuild credit history.
2. Credit cards that are really debit cards. These types of cards look like credit cards and some are issued by Amex or Visa and Mastercard. You load them with the amount you need then use them at any place that accepts credit cards. When the balance gets low you can reload them. There is usually a fee associated with them.
3.Secured credit cards- the best way to rebuild credit history. A secured card relies on you making a deposit in the credit card companies bank. This deposit is held as collateral. It only gets touched if you miss a payment. Since you are buying on credit they report to the credit bureaus. This is a good way to rebuild credit history. The starting credit limit is usually the amount of your deposit. As you establish a good track record they may raise your credit limit. Rates can vary so shop around.
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. - 29969
Unfortunately not all of them are honest and are looking to take advantage of people who are desperate to get a credit card that can help them rebuild credit history.
How do you know which ones to trust? First lets look at the three types of cards and how they may help you rebuild your credit history.
1. Clubs disguised as credit cards for people with bad credit. These clubs or catalogs issue cards that can only be used to purchase their products. The good news is that they will report to credit agencies. Which will help to rebuild credit history. The bad news is that the products are often overpriced. This is an expensive way to rebuild credit history.
2. Credit cards that are really debit cards. These types of cards look like credit cards and some are issued by Amex or Visa and Mastercard. You load them with the amount you need then use them at any place that accepts credit cards. When the balance gets low you can reload them. There is usually a fee associated with them.
3.Secured credit cards- the best way to rebuild credit history. A secured card relies on you making a deposit in the credit card companies bank. This deposit is held as collateral. It only gets touched if you miss a payment. Since you are buying on credit they report to the credit bureaus. This is a good way to rebuild credit history. The starting credit limit is usually the amount of your deposit. As you establish a good track record they may raise your credit limit. Rates can vary so shop around.
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. - 29969
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More information on other areas of rebuilding your credit history are located located here Credit Repair Information. Tlocated here is also a More free report located here.
