Credit cards are usually known by ruining people’s credit rating, a recent study shows that credit card debt is responsible for more than 60% of the bankruptcies in the USA. But there is another side of credit cards, and some companies have actually developed products that are proven to increase your credit score if used wisely, just like bad credit bank accounts.
These products are easy to apply for and if you do play by the rules, will succeed in consolidating your debt and making your credit file look better. There are plenty of these products currently on the market, and it is easy to pick the one that is suitable for you. You just need to use a credit card comparison site and can easily pick the right bad credit credit card.
So what are bad credit credit cards for? They allow you to borrow a small amount of credit as long as you pay it back. Every single repayment will better your credit rating, therefore you will be able to build it up quickly. They are suitable for people who cannot be accepted for other credit cards, due to poor credit history.
Another alternative to them are called Pre-Paid Credit cards, that are also helping you rebuild your credit score, although you are not effectively borrowing extra money. You can still benefit from the advantages of using a credit card in a shop or online, and your purchases are protected, although you are not building up huge debt. Also you will be protected by the credit card company for your purchases and can claim back money if you fall victim to online fraud.
As time goes by, you are still able to apply for credit on the card, and gradually increase the limit, therefore it is a very useful tool and would advise you to check out the latest credit card comparison sites. The initial credit limit will be increased as you make more and more payments on the card and
Bear in mind: you have to be careful to work on your credit repair goal, and pay the money back on time, because that is the only way this credit card is going to work for you, otherwise it will do no good. Also you are thinking long term, so paying that extra interest on the card initially is worth it if your credit rating looks much better in a short period of time.