If your current credit score can do with some improvements, there are numerous credit cards available for individuals in your situation. With these cards you can actively improve your credit score – be prepared that the process might take a while, but being patient is totally worth it.
The Types of Credit Cards Available for People with Bad Credit
There are two basic types of cards available for credit score improvement purposes:
– Secured cards that use a deposit you are required to make and will allow you to borrow against that deposit,
– Unsecured cards that make credit available to you without requiring a deposit first.
How to Make the Choice
Each of the above types of credit cards comes with pros and cons, the choice depending entirely on your current financial situation and your future possibilities.
Secured cards usually require you to make a deposit between $200 and $500 and will offer a credit line of the same amount. If you prove to be a responsible card user, that is, if you pay off your balance on time for at least a few months, your card provider might increase your limit without requiring you to make another deposit and this appreciation will appear in your credit reports as well.
Once you have managed to establish a good payment record, you might have a look at unsecured card offers, too. Owning an unsecured card will improve your credit score even more provided that you use the card in a wide and disciplined manner. These types of cards come with higher limits and they don’t use the borrower’s own money, a feature can be listed as an advantage and as a disadvantage at the same time. Unsecured cards offer more flexibility, but if you fail to make your payments on time, you can easily fall into the credit trap and hurt your credit score instead of improving it.
If you manage to stick to your payment plan and use your cards responsibly, you will see considerable improvements quickly. While almost all cards for bad credit come with relatively high fees and limited access to rewards, the better your credit scores, the better the conditions you will receive, too. Your fees will become lower, your credit limits higher, and your rewards more substantial as the months go by, and there is one more great benefit to using credit cards for credit score improving purposes: you will be able to figure out how to make timely payments and how to use your credit wisely.