Secured credit cards have been a common tool used by many consumers to repair their bad credit as these types of credit cards may offer lower costs on interest rates and can lead to more overall affordability on a personal consumer’s credit repair journey. Understandably, individuals in a bad credit situation may find that an affordable interest rate on a credit card could be hard to find, despite the fact that there are credit card specifically available to men and women who may have a poor credit score, as even unsecured cards for bad credit borrowers are available to help an individual with their bad credit repair needs.
Many of the top bad credit credit cards that are offered to consumers range in their APR, as a credit cardholder’s financial situation and the card lender will both play into what interest rate is received. Yet, many of the top cards that are deemed available and beneficial for bad credit borrowers will offer an interest rate of around 7.9% to anywhere as high as 20%, but if a consumer is looking for affordability and the option to either establish a positive credit score and history or repair a bad credit score, secured credit cards have been one of the more popular means of doing just that.
Secured cards typically fall in about the same percentage rate as most traditional bad credit credit cards, but they can also offer low introductory periods and balance transfer opportunities for bad credit consumers who may need to consolidate various debts. Also, there are numerous financial institutions that can offer a secured credit card as card issuers like Capital One, Applied Bank, Public Savings Bank, and Bank of America are just a few of these lenders who may be able to offer a secured card for bad credit borrowers in need of credit repair.
Obviously, comparing secured credit cards will be necessary so that a consumer not only finds an affordable option, but one that will offer low fees and the option for a consumer to simply get back in a decent financial position. There are some secured credit card offers that charge excessive fees and fines and could cost the cardholder a great deal of money which, obviously, could eat into their secured account which is backing this card and cause more financial strain in a bad credit situation.
However, consumers do have reputable lenders that can offer secured credit cards which will allow them to make purchases, promptly pay them off, and eventually increase their poor credit score through establishing a better credit history. While secured cards are greatly valuable for consumers, it simply comes down to using this card properly with basic financial practices that are conducive to a healthy credit lifestyle, but when these methods are implemented, cardholders should see positive results related to their credit score.