Many of the nation’s top financial institutions offer bad credit credit cards like secured credit cards for those who need a way to gain access to credit with which they can rebuild their credit history. Certain individuals may have a poor credit score and have trouble finding affordable credit cards so that they can repair their credit history or there are cases where a consumer may have little to no credit history and need a card to build their credit score.
Banks like Citigroup, Bank of America, and Wells Fargo/Wachovia offer secured credit cards for individuals who want to repair a bad credit score. There are various secured credit card offers from a variety of sources but anyone who is researching credit cards needs to find the card that will bring the lowest rate and fewest fees so that building a credit history or repairing a bad credit score can be more affordable.
Secured credit cards require the deposit of a sum of money into a bank account which secures the lender against loss if the cardholder becomes delinquent or defaults. However, consumers who are looking to repair a bad credit score or build a credit history must use their card in a way that will make the chance of default and or missing payments minimal.
Many secured credit card users have, in the past, simply made affordable purchases on their card each month, budgeted and saved money wisely, and have promptly paid off their bill so that interest rates will not build up. Repairing a bad credit score or building a good credit history for someone with no previous credit history may take time and financial discipline but a secured credit card has been a useful tool for many consumers in accomplishing this task.
While not everyone can benefit from a secured credit card, careful planning and research must go towards not only choosing which lender you wish to use when acquiring a secured credit card but also the type of spending and credit limit to be associated with this card must be considered as well. Yet, many cardholders have used secured credit cards to repair a bad credit history or build an excellent credit score and, after proving they are a safe credit risk, many have even been offered unsecured credit cards that can be more beneficial in helping one maintain a healthy credit lifestyle.