Citigroup has been offering a secured credit cards to bad credit borrowers who are in trouble with their credit score and need a way to build a better credit history so as to combat their bad credit situation. A bad credit score can cause access to credit to be limited for many bad credit borrowers and, in this case, repairing a poor credit history can be difficult.
Many individuals have seen their credit score drop over the past month for a variety of reasons, and those who have now gotten into a financial position where they can begin to repair their bad credit score find that using a secured card is one of the most popular ways of doing so. However, bad credit borrowers who still have a large amount of debt will typically not be able to benefit from a secured credit card since spending money to repair a credit score will not be helpful when one already owes various debts.
A secured credit card is similar to an unsecured credit card, only the secured card requires the deposit of a sum of money into a bank account which secures the lender in case a cardholder fails to pay or defaults on their credit card charges. Yet, bad credit borrowers can use this card to make almost any purchase and, with proper financial planning, pay off these charges and begin the process of repairing a poor credit history and bad credit score.
While Citigroup is one of the top lenders in our nation, they are by no means the only secured credit card lender available. There are many financial advisers who tell individuals who are seeking a secured credit card to look for a reputable lender and there are many offers available for secured credit cards that do come from well-established financial institutions. For this reason, it’s in the best interest of the person looking for a secured credit card to look at multiple options.
Finding a secured credit card that charges few fees, has an affordable interest rate, and essentially is going to be beneficial for a bad credit borrower’s goal of repairing their credit history will be a cardholder’s first priority when comparing cards. However, a secured credit card is no guarantee to a better credit score, but with proper use of a secured credit card and smart financial habits, a bad credit borrower can repair their bad credit score and get their financial life back in order in a timely manner.