Credit repair credit cards are cards that are designed for people with bad credit. If you have very bad credit and you can’t get a regular credit card, there are companies that can help you. They offer cards that come with certain restrictions to lower their risk. These credit repair credit cards are one way to start improving your credit score. Some cards that can help you improve your credit score don’t require a deposit from you. These are unsecured cards just like a regular
MasterCard or Visa. But with these special credit cards, you typically will have a very low credit limit. It’s not uncommon for you to be able to get credit repair credit cards that only have credit limits of $200 or $250. That’s because they don’t want someone with bad credit to be able to charge hundreds of dollars and not pay. Another common feature of these credit cards is a high APR. This is a high interest rate that’s usually much higher than you would have if you had a regular card and good credit. You might be able to get a low 9% APR with a regular card. A card for those with bad credit might automatically have 24% or even higher.
The offers vary by credit card, but most also have monthly fees in addition to the high interest rate. You could have to pay $7 a month or more just to have the card even if you don’t use it. That amount is charged to the card and incurs interest fees like every purchase will. Most of these cards also charge a fee for you to get the card. If you apply and are approved, you could pay up to $95 and in some cases more as an annual fee for having the card. Unfortunately, these cards may be the only option for someone with very bad credit. If you read the fine print you could find that as soon as you get the card you’ll be charged a $79 application fee, a $20 card fee, a $95 annual fee, a $45 set up fee and the first month $7 fee. If you do and you pay that off quickly, you’ll help improve your credit. And with a card like that, if you start out with a credit limit of $250, you only end up with about $70 of credit; until you pay off all the fees you pay just to get the card! You can also get what’s known as a secured credit card. These are often the only kind of credit repair credit cards people who have extremely bad credit can get.
There’s usually a fee for getting the card that’s around $75, and then you have to make a deposit. If you want $300 of credit, you deposit $300. You still make regular payments but they hold your deposit against the risk of your bad credit. These credit repair credit cards can be helpful in rebuilding your credit if you’re careful.
Howard Martell is the Owner of http://HomeProfitCoach.com/silver . Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.