A bad score can be difficult to deal with if an individual has no access to credit or may have interest rates associated with their credit cards that make rebuilding a better credit history expensive. However, many cardholders have turned to secured credit cards as a way to repair their bad credit score. There are a variety of top lenders in the nation who offer secured credit cards and have made it easier for bad credit borrowers to gain the credit they need to increase their score.
Secured credit cards can be used by a variety of individuals like college students, bad credit borrowers, or businesses who want to establish a good credit history or repair a bad credit score. Secured credit cards are often seen as bad credit credit cards but they can be a way for someone who simply has no credit history to gain an affordable credit card with which they may use to build a credit score and history as well.
A secured credit card requires that the cardholder deposit money into a bank account which will set their credit limit. If the cardholder makes charges and fails to pay the monthly payments or defaults altogether they will lose money from this secured account. It’s for this reason that cardholders who obtain a secured credit card must be serious about repairing their bad credit score since they may lose money from their secure account and do more damage to their credit score if they do not pay on their credit card charges.
Again, reputable lenders like Capital One, Chase, Citigroup, and Bank of America offer secured credit cards, as do a variety of other financial institutions across the nation. However, it will be important for anyone who is considering a secured credit card to research the institutions who are offering these cards and make sure they are getting an affordable interest rate and a card that comes with low maintenance fees so that they can focus on rebuilding a bad credit score rather than combating interest and bank fees.