Rebuilding credit may prove to be an extremely challenging process. However, if you are really set at fixing your low credit score, you will realize that there are actually a lot of ways by which you can rebuild credit. One of these is to use certain types of credit cards that are specifically meant for this purpose.
Top Credit Cards to Choose From
One of the best types of credit cards that can be used to fix your low credit score is the secured credit card. You may need to make a deposit to open an account for this type of card. The amount of your deposit will determine your credit limit and the purchasing power of the card. A secured card has higher approval rate. Even people with bad credit scores will most likely be accepted to open an account. You will have a higher chance of rebuilding your credit with this type of card, since each payment that you make with this is reported to the credit bureaus.
One of the best secured cards that you can choose is the Secured MasterCard from Capital One. The process for application is simple and quick. There are no application fees and you can qualify for an increase in credit limit without making an additional deposit.
You can also select an unsecured credit card. This can help rebuild your credit faster, but the approval rate is low. Expect that you may get a lot of rejections when you apply for this type of card because of your low credit score.
A good example of an unsecured card is the Continental Finance Matrix Credit Card. Issued by Discover, it is an excellent choice for those with extremely low scores. If you use this card, you monthly payment history will be submitted to the three major credit bureaus, helping you to repair your credit bit by bit. This card may not require set-up fees. However, you can expect high annual fees.
Another card to consider when trying to rebuild credit is the Continental Finance Cerulean Hybrid card. What’s great about this card from Discover is that you have the option to choose a secured or unsecured account, or a mix of both. You can open an account that fits your needs with this card. Submit an application and learn whether you get approved or not within seconds. There are no application fees to pay and you can use the card anywhere Discover is accepted.
Tips for Rebuilding Credit
Before you try to rebuild your credit with a credit card, take some time first to know your FICO score. Your rating is considered poor if it is below 650. If you have bad credit, the most important thing to do is to pay your credit card bills in full and on time each month. It is also vital to keep your balances lower than your line of credit. If you are able to follow these two simple rules, you will be on your way to achieving success in rebuilding your credit.
Take a look at some of the credit cards that you may be able to use in rebuilding credit:
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