A Secured Credit Card Offers Bad Credit Repair

Rebuild Credit Scores with a Poor Credit History Card

Bad credit shows on a credit report for 7 years, but a secured card helps to repair a poor credit history far more quickly. A better credit score leads to loan approval.

More consumers are looking for the best secured credit card offers, not least because they provide a chance to gradually rebuild credit scores. Whilst bad credit repair is an added bonus, the majority of people simply want a sufficient credit limit to cover the cost of more expensive good and services. One of the many positives of secured credit cards for bad credit cards is that approval is guaranteed. This is because the lender doesn't have to underwrite the risk of default through credit scoring.

What Are Secured Credit Cards for Bad Credit?

An adverse credit history means that unsecured bad credit credit cards typically have a low credit score and high initial charges. Although this will be reviewed after 6 months, it is difficult to use them to finance larger purchases. A secured credit card application means that the customer qualifies for a larger credit limit based upon the provision of either cash or an item of value, such as a car or property. They look and work in the exact same way as an unsecured card.

A Secured Credit Card Offers Poor Credit Repair

Whilst bad credit repair takes place naturally when repayments are made on-time in respect of credit agreements each month, this isn't the case for everyone. The reality is that, following a debt relief program, not everyone can perform bad credit repair because they no longer have any active credit agreements. After each monthly repayment, lenders report to credit reference agencies which leads to a better credit rating. Secured credit cards for bad credit help people qualify for mainstream financial products and services in the near future. However, any bad credit will continue to show on a credit report for 7 years. It will show for 10 years in the case of chapter 7 bankruptcy.

Where to Make a Secured Credit Card Application

Despite their popularity, not all lenders offer secured cards. There is a definite trend towards unsecured bad credit history cards with low credit limits and high charges because they yield higher profit margins for specialist bad credit lenders. New Millennium bank has a range of cards and about 50% of all credit unions offer them to their members. It is advisable to talk to a credit union as the rate of interest and charges tend to be lower than their private sector equivalent.

A Better Credit Score with a Poor Credit History Card

Always perform a comprehensive search as interest and charges do vary considerably between providers. Bad credit repair involves repaying debt punctually in order that lenders can report this to the three major credit reference agencies. A secured credit card application is guaranteed to be accepted so customers who have been rejected elsewhere can get a card to pay for goods and services. It is important to avoid spending money that will be difficult to repay as this will make matters worse. Failing to pay back the money owed on a poor credit history card will lead to the loss of the collateral and a lower credit score.

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