Home : Credit Cards : 2 Types Of Bad Credit Or Credit Repair Cards You Should Know About

2 Types Of Bad Credit Or Credit Repair Cards You Should Know About

If you have bad credit, you will find it difficult to get your loan application approved. The good news is that you can improve your credit by managing your finances wisely. You can qualify for a credit card even with a bad credit score; there are a number of credit card options for you to choose from. You can opt for a credit repair card to improve your credit and raise your credit score.

2 Types Of Bad Credit Or Credit Repair Cards You Should Know About
There are options such as balance transfers, debt consolidation, or a low introductory APR. These cards are designed to help you build your credit and improve your credit score. There are two main types of credit repair cards available in the market.

Secured credit cards
Secured credit cards, as the name suggests, require collateral for approval. The collateral is in the form of a deposit that will act as a guarantee against your loan. The amount of the deposit is predetermined, and you are required to place the same to secure your credit card. This deposit can be equal to the amount of your credit or maybe a little higher than the credit amount. Also, the deposit can be in the form of cash, car, stocks, jewelry, or any other asset. The value of the asset should be equal to or more than the credit you seek. These cards help you build your credit history step by step. Application fees will be charged with this card, which is why it is important to read the terms and conditions before applying for such a card. You can use the card responsibly to ensure that you are building your credit and improving your credit score.


You Might Also Like:    Setting Spending Limits With Your Bank Or Credit Card


Prepaid credit cards
First, it is important to note that prepaid cards are not credit cards, but they can be used similar to credit cards. The biggest benefit of a prepaid card is that there are no finance charges since all the debt is paid in advance. It will allow you to avoid debt, and you can determine the amount you would like to use on your card. The process of budgeting and financial planning is made easier because you have no debt on you. There are certain fees that could be applicable to the card, and these include ATM fees, over limit fees, and reload fees. Before applying for this type of credit card card, you need to read and understand the terms and conditions well. Learn about any charges applicable to your credit card and make a wise decision.

These two types of cards are specially designed to allow you to build your credit. If you have a low credit score, this is where you should start. Once you get one of these credit cards, you should use it wisely and understand the implications of every purchase you make. Since prepaid credit cards have no debt, they are ideal for rebuilding your credit. You can then move toward a different card after you have a strong credit score. Being financially responsible is the right step towards building credit.

Keep yourself updated with the latest on  Credit Cards . Like us on  Facebook  and follow us on  Twitter  for more on Investments.

Disclaimer:
The content provided on our blog site traverses numerous categories, offering readers valuable and practical information. Readers can use the editorial team’s research and data to gain more insights into their topics of interest. However, they are requested not to treat the articles as conclusive. The website team cannot be held responsible for differences in data or inaccuracies found across other platforms. Please also note that the site might also miss out on various schemes and offers available that the readers may find more beneficial than the ones we cover.