Many people that are facing a bad credit score for a number of reasons, but when the time comes that someone with a bad credit score decides to improve their credit history, the question of whether to use an unsecured credit card or a secured credit card often arises.
While both can be beneficial, it comes down to interest rates. Credit card debt is often drawn out over time due to interest rates and someone that may have let their credit slip may not have the best of rate on their unsecured credit card.
If this is the case then using a secured credit card may be in your best interest. A secured credit card, which requires the backing of the card through money deposited into an account, usually can bring a lower interest rate than an unsecured card associated with a bad credit score.
However, if an unsecured credit card has a long history and a decent interest rate then using that card to improve a bad credit score may be the best bet, as financial counselors say that a card with a long credit history will reflect more on a credit score than a card with little or no history.
Being responsible is going to be a big factor as well, since building one’s credit history takes time and discipline. Yet, with a little effort and by using the best credit card available, anyone can boost their credit score from bad to good.