There
are many choices for credit cards that advertise they will help rebuild credit
by using a secured card. For cards to help in the rebuilding credit process,
good payment habits must be reported to a major credit agency.
Rebuild
Credit Using Secured Cards
When
you can't get approved for unsecured credit cards due to bad credit, bankruptcy,
or no credit, using a secured card and making payments on time can help rebuild
bad credit. Later try to get approved for an unsecured card if your credit has
improved.
Yes,
some secured cards can be converted over to an unsecured credit card. This is
possible with some companies after the cardholder makes payments on time over
months and has proved they can be responsible with credit. Not all secured card
companies convert to unsecured cards.
Using
a secured card means the cardholder must make a deposit toward the credit limit
on the account. The creditor uses the deposit as security if the cardholder
defaults on the card payments.
Security
deposits on secured cards can be from 50% to 100% of the deposit the cardholder
makes and so can the credit limit. For example a deposit of $100 could mean the
credit limit is $50 to $100. Check the terms for the card.
Credit Card,
Visa Card, Prepaid Upside Card:
Looking for a prepaid card that has low fees?
Check out the Upside Visa Prepaid Card, it has some low fees. It has become very
popular because of the low rates. As little as $25.00 could be loaded which is
better than some cards that require $500 or more as a minimum load. The
yearly fee is low too, and compares with the rate of some unsecured cards. Look
for the
Upside Visa card offer in the list of popular
card offers, follow the link to their website and click on the terms and
conditions to view all the fees involved with this popular Visa card.
Prepaid card offers vary and some have low rates and other cards have
high charges. That is why it is important to view the terms and conditions of
the card before applying. Using prepaid cards has several advantages as most can
be reloaded using a bank account of even a debit card. Any fees associated with
the offer, should be listed on the card's website on the terms page.
Fees for prepaid cards usually consist of these
areas: reloading funds, yearly or monthly fees, ATM withdrawals, card
replacements, extra cards, and activation fees. These charges always vary among
card issuers and some may have fees for some areas, while other issuers do not
charge. These cards are good as a tool to prevent racking up debts, as the card
must be pre-funded with the money before being used. When an unsecured credit
card has been a problem, many people turn to these cards in order to use a card
for purchases but not have charges to pay later. Prepaid cards can be used
online or locally - anywhere the Visa or MasterCard logo is displayed and as
long as the card is pre-funded.
Secured
credit cards usually have fees that unsecured credit cards do not have such
as processing fees or annual fees. Beware of secured cards with high fees as
this can greatly reduce your deposit and credit limit.
Even
if you find a good secured card with low fees and the card does not convert to
an unsecured credit card, if your payment history is great, you increase your
chances of getting approved for an unsecured credit card with another company.
Before you apply for a secured credit card make
sure the creditor reports to all three major credit bureaus. If the creditor
does not report payment habits, the card will not help you in re-establishing
your credit.
Good
payment habits are the best way to rebuild bad credit history. No reporting
means no payment history will be on your credit report or in your credit score.
Most
secured credit cards are accepted worldwide, have fraud prevention,
online management, are easy to fund, and report to credit bureaus. They can features like online bill pay and email alerts. Secured card offers
can be guaranteed, no credit check cards, and some report to all three credit
bureaus.
