What is the best credit card for people trying to rebuild their credit?

 

Question:  What is the best credit card for people trying to rebuild their credit? What is the one for people with bad credit?

Answer:  If you have bad credit and you’re trying to rebuild it, chances are pretty good you won’t qualify for a regular card.  There is another option, but you’ll have to put some cash down. 

Pre-Paid Debit Cards

Do not get a pre-paid credit card.  They’re useless for rebuilding credit.  They’re nothing more than debit cards and debit cards don’t get reported to the credit agencies because you’re not actually making payments on anything.  All you’re doing is drawing from the cash on the card.

Secured Credit Card

What you want is a secured credit card.  There is no credit check to get one.  You put money into an account and you can never charge more than the balance on the account, but the balance never goes down, that is, when you use the card, it’s not spending the deposit on the card.  That money is there for collateral.  You still have to make payments just like a regular credit card.  When you make a payment, your “available balance” goes back up.  Since you’re making payments, your payment history DOES get reported to the agencies.  That’s how you can easily rebuild your credit.

Then you can shop here for the best credit cards.

Completely Free Credit Score

One Response to What is the best credit card for people trying to rebuild their credit?

  • spiderfan2004 says:

    Captial One (Visa) has the lowest Interest Rates and an extremely flexible payment plan…the Worst is the Wells Fargo Credit Card (Visa) that has an average of 27.9% Interest.

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