Try secured credit cards to rebuild damaged credit scores

Wells Fargo

People looking to rebuild or establish credit could try secured credit cards like the kind offered by Wells Fargo and US Bank. Image: MoneyBlogNewz/Flickr.com/CC-BY

There’s a great tool for rebuilding or establishing credit called secured credit cards. Secured cards work just like traditional cards, except the limit is determined by an upfront deposit that secures the credit. Most major banks offer them.

For lousy or nonexistent credit, try secured credit cards

Credit cards are one of the most ubiquitous forms of credit in modern America. There is a way for people who have either a dismal or nonexistent credit history to get credit cards that will help with credit repair or establishing a credit score. They’re called secured credit cards. Secured credit cards have the backing of collateral in the form of an upfront deposit. The deposit, whether for a few hundred or a few thousand dollars, determines the credit limit. Other than that, they work just like typical credit cards. Payments have to be made, and discretion should be used making purchases.

Great way to get credit back on track

Just like trying to find the best personal loan rates, the interest rates and fees of card companies should be checked out thoroughly. Consumers should be cautious; there are perfectly legitimate companies out there, but others are out to rob people blind. If something looks too good to be true, it usually is. If e-mails show up from “Bank of the Gobi Desert,” don’t open them. Beware of cards endorsed by celebrities as well; the “Kardashian Kard” was rated among the worst prepaid debit cards in existence by US News and World Report. Wells Fargo, U.S. Bank, and other institutions offer secured cards. You should also consult with local community banks and credit unions. Community banks and credit unions invest into the local area, whereas huge multinational banks invest in ski chalets in Scottsdale and Aspen for executives.

Credit is important

Access to credit is an important part of modern American life, for good or ill. People who want to get a loan to buy a house or fly to Birmingham to watch an Auburn Tigers game but lack sufficient cash on hand, need to have the credit available.

Sample of secured credit cards

Here are the secured credit card offers from Wells Fargo and US Bank.

Get professional credit repair help

Speak to a professional today and take proactive steps to repair your credit. For a FREE credit consultation, call 1-877-563-2076.

Source

U.S. News and World Report

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