Credit Repair Credit Cards

Credit repair cards offer users the ability to bounce back from a bad credit history. Credit repair cards can give users the benefit of being able to rebuild their credit reputation and manage debts more effectively.

There are three main types of credit repair cards:

1. Prepaid Card – This type of credit repair card is just the same as debit cards. It is also relatively easy to open. All you need to do is agree to deposit a certain amount of money in your preferred bank and in return, they will issue you with a credit card you can use to make your purchases with. However, you are not going to be issued with a certain credit limit as it usually happens with standard credit cards. When you use a prepaid card, the money you have previously deposited to open the new account is the same money you will use as you make any kind of purchase with this card. Because of this, you no longer have to receive a monthly balance statement from the card company. For as long as you have a certain amount deposited under your prepaid account, you can continue to use it.

2. Secured Credit Card – This type of card is considered secured because it is safely held under collateral means. This collateral comes from the deposited funds placed into your savings account. Apart from this feature, a secured credit card is considered to be almost the same as any standard credit card. The amount of money which can be deposited into the savings account may vary, but it would always dictate the limit of your credit.

3. Unsecured Credit Card – This type of card is almost the same as standard credit cards. It only differs when it comes to the amount of interest rates which can be accumulated as well as the miscellaneous fees which are also subject for payment. The credit limit usually starts at a low level and may eventually be upgraded if the account is kept within a good balance standing. Eventually, some upfront fees are charged when the credit is extended.

For additional information on credit cards or related topics please visit our library of credit card articles.