If you have been in a situation or made a decision that adversely affected your credit it is important to take the right steps to repair your credit. Bad credit does not have to be something that you live with. Good credit can help make major purchases easier and reduce financial stress.
Credit essentially shows lenders that you are responsible for your spending habits, and if you have debt, that you are paying it consistently. Credit reparation starts with getting a secured credit card. A secured credit card is a card where you pay the cash amount in advance that you want on the credit card. For example, if you want a $500 credit line, you put a $500 deposit on the credit card. Most deposits are between $300-$500 minimum, some charge an annual fee. It is important to choose the right one. If you are in a bad credit situation here are five credit cards that offer quick approvals and can assist you with getting your credit back on track.
Capital One Secured Master Card
This card has 770 reviews with a four out of the five-star average, and there is no annual fee. In addition, you can get a higher credit line if you make consistent on-time payments for five months. After you make a minimum deposit of $49 you can get a $200 credit line.
Open Sky Secured Visa Credit Card
This company believes in giving people a chance to build credit by providing an easy approval process. They provide credit tips and credit education and the $200 deposit becomes your credit line. They also offer a social media forum where you can learn from other Open Sky Credit Card holders.
Discover It, Secured Card
A four out of five-star rating with over 1,941 reviews, Discover It requires a $200 refundable security deposit. After eight months they begin reviewing your account to see if you are eligible for transition to an unsecured credit card. In addition, this card was designed to help people with bad credit so it is tailored to the needs of those seeking to repair their credit.
First Progress Platinum Select MasterCard
There is no minimum credit score required to be approved for this card. After you put a $200 deposit you can get your card fast with their expedited shipping options. If you pay off your balance in full the deposit is refundable. Over three thousand people give this card a 3.5 average rating.
First Progress Platinum Prestige MasterCard
The Prestige MasterCard requires no credit history or minimum score. In addition, you choose the amount you want to put on the card with a security deposit of $200-$2000. With a valid social security number, you can easily get approved for this card if you are 18 years or older with no prior cardholding history for First Progress. It also offers a lower annual fee than other secured credit cards.
Rebuilding Your Credit
If you want to rebuild your credit and learn the best tactics for responsible spending secured credit cards can help you do this. Secured credit cards allow you to learn ways to spend responsibly because you are putting the money on your card. It is also important to know if your secured credit card reports to the major three credit bureaus, all of the cards mentioned above do. Reporting to the three bureaus means that your payment history will be available and it can help improve your credit score. Reforming your bad credit score should always be a priority because credit helps you navigate easier through your financial life. For example, excellent credit can help you get faster approval for loans and apartment rentals. Furthermore, with good credit, you can make money. Earning rewards for purchasing you make using your card can help you get cash back and other perks. Interest rates are also improved with better credit. As your credit score increases you may be offered better interest rates from lenders. An interest rate is how much you pay a lender for allowing you to use their asset. Thus, the lower the interest rate, the less you pay the lender, which means you save more money.
Do Your Research and Make the Right Choice
Investing time and research into improving your credit history is worth the payoff. Learning responsible spending habits is also integral to improving your credit. When using your secured credit card you want to make sure you are using it on purchases you can pay off completely by the end of the month. It is not wise to max out your secured or unsecured credit card. With a secured credit card it is important to use it for small purchases and pay them off. Although you are putting the money on your secured credit card you must keep in mind that it is a tool you are using to improve your credit so pay attention to your purchases and payments. Be responsible and pay back what you spend, many banks reward this by transitioning you to an unsecured credit card or offering you rewards.