How to Choose Credit Cards to Repair Bad Credit History

Using credit cards to repair bad credit is a very wise move. Quite often these cards are secured, and even though the funds in your savings account secure the card, many of the card issuers still report to the credit bureaus. This provides an excellent opportunity for someone with bad credit to rebuild credit and increase credit score.


Pittsfield, MA -- (SBWIRE) -- 01/08/2013 -- Achieving credit repair of bad credit can a very difficult task, but the easiest way to accomplish this task is by obtaining a credit card designed for those with bad credit. In most case these cards are secured, so you must either pre-load the card or back it up with a savings account at the issuing agency. Some of these companies will also report your activity to credit bureaus which can help you rebuild your credit score.

Once you have bad credit on your credit report from not paying your bills, it will remain on your credit report for seven years—a Chapter 7 bankruptcy can usually remain for ten. Even though the creditor can no longer take any legal action after the information is purged from credit bureau records (in some states the limit is actually three to four years), it is in your best interest to begin paying it back and apply for credit cards to repair bad credit.

Secured cards are a good way to initiate credit repair of bad credit. Approval is automatic since you are actually using your own money either by loading it onto the card or through a savings account with the card issuer. Sometimes with the latter option the issuer will allow you to have a credit line higher than what you have on deposit after a few months.

Another way to implement credit repair of bad credit is with an unsecured credit card designed for those with bad credit. These cards carry a higher interest rate, low credit line and a number of fees that offset the original credit line. The advantage is because they are unsecured you don’t need any money up front except maybe an application fee; the other fees are added to the card before you receive it.

About Credit-yogi, an online marketing service located in Pittsfield, Massachusetts, reminds consumers that if a deal seem too good to be true, it usually is, so use some common sense and avoid scams.