Credit Rebuilding Credit Cards to Help Growing Your Credit
Rebuilding credit after a bankruptcy or another negative event is a tough business. A situation where you need to have credit first in order to build credit is a typical Catch 22 situation. However, you still have options. Secured cards and high-risk products are some of them.
Here're our editor’s picks for cards that will help you establish or rebuild credit:
Checking Account Required
Fast and easy application process; response provided in seconds
A genuine Visa credit card accepted by merchants nationwide across the USA and online
Manageable monthly payments
If approved, simply pay a Program Fee to open your account and access your available credit
Reports monthly to all three major credit bureaus
Generally, whatever option you choose, these are the main principles:
- Get a card that reports to major credit bureaus, not unknown ones. Some cards report like secured cards, some like regular – it does not matter that much.
- Get a card with a grace period. It will give you additional 20-25 days to pay off your balance every month.
- Get the highest credit limit you can get. A high limit will help you build a credit score faster.
- Do not overuse your credit limit. You should not exceed 30% of your credit limit every month; it is even better to aim for 10% territory. If needed, pay your balance two times a month.
- Pay on time. Always. That is a simple but effective way to improve your score.
- Do not send out many credit card or loan applications. Lenders make so-called “hard inquiries” on your credit report and this can lower your score in a year’s timeframe.
In most situations of bad credit, the only choice is the secured card. A secured card offers you a credit limit that is secured with a deposit that you put in a bank as collateral.
Some of the good secured cards are:
If your credit score is not damaged but rather nonexistent, it is much easier because you have more options – typical newcomer products like Capital One Platinum, Credit One Platinum or some of the Discover cards can help you to jump-start your credit score building.
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