subject: How to chose the right credit card to repair my credit? [print this page] How to chose the right credit card to repair my credit?
When your credit is good, you can qualify for many different credit cards with variety of financial institutions. But when your credit score goes down, suddenly, you will stop receiving all those pre-approved credit card offers by mail and may find your application rejected when applying for a new credit. Still, there are many options available for you to receive a credit and to repair your credit history.
For example, almost every major bank offers secured credit cards. Your credit limit will depend on the amount you will be required to deposit and keep with the bank to secure your payments. These cards have small annual fees and higher APR. The benefit of these cards is that you will be able to repair your credit by making timely payments. Moreover, by building strong relationships with the bank you may be able to convert your secured card into an unsecured card within the first year.
Another option is the unsecured credit cards offered by many smaller banks. Your should read the terms very carefully before accepting their offers. Those cards tend to have much higher annual fees, which will be deducted from your first statement, and higher APR. Moreover, these banks will almost always give you a minimum credit limit at the beginning. Although these cards will help you to repair your credit as well, it comes at much higher price. And due to the fact that most of these banks do not have physical locations, it may be harder for you to make your payments on time. And yes, those late penalties are high.
Applying for a credit card with the retailer will also help you to repair your credit. It may be easier to qualify for those cards, but you may be limited to use those cards only at that particular retailer. If you make majority of your purchases at the particular store anyway, having a credit card with that store may also give you some additional savings through various discounts usually available to the cardholders. And as long as it provides you with the credit, your timely payments will be reflected on your credit report.
Having debit cards, pre-paid cards, or any other cards that do not actually give you a credit does not help you to repair your credit. These accounts are not reported to the credit bureaus and your timely payments will have no impact on your credit history.To learn more about credit cards and credit repair please contact Alternative Solutions Legal Center, PC to set up you free consultation with the attorney.
