Credit Repair Credit Cards

Credit repair credit cards are also sometimes called credit builder cards or credit cards for people with bad credit.

As the name implies, these are a special form of credit card that enable people with a poor credit score to improve this over time. These cards typically have higher interest rates and much lower credit limits than other types of credit cards.

If you have been refused a credit card or other form of loan due to a bad credit score, then you may find that these are useful as a way of improving your credit score over time.

Credit cards for bad credit should not be used to access more credit and increase your total amount of borrowing. Their purpose is to show you can pay back your balance in full each month and it is this that boosts your credit score over time (subject to how you manage your other debts and finances).

Credit repair cards work under a simple principle: they allow you to demonstrate that you can responsibly manage a small amount of credit, and so improve a poor credit score over time.

Credit card companies use your credit history and their view on how affordable the credit card is for you to determine if they will accept you for a credit card. If you have no credit score or a low credit score, they may not accept your application.

This is why credit repair cards can be a good way to improve your credit score over time.

They are usually not suitable for large purchases or debt consolidation since the interest rates they carry are higher than other credit cards.
The best way to use credit repair cards is to make small purchases each month, which you then repay in full when you receive your monthly credit card bill.

You should never miss a monthly payment or this will have a decidedly negative effect on your credit score. It could even result in your credit rebuilder card being taken away.

Once your credit score has improved you can then you can apply for another credit card at a lower rate of interest or another form of credit.

These are used by people who have a bad credit score or have not used enough debt to have built up a credit score. Credit builder cards are a way to improve creditworthiness.

While these cards can be used for purchases, it’s a good idea to make sure you can pay off the whole amount owed every month. This is because the interest rates on credit rebuilder cards are higher than on normal credit cards.

Spending carefully and then repaying the whole amount owed each month will steadily improve your credit score – demonstrating that you can use credit sensibly and responsibly.

To find the best deals currently available simply go to the table above.

Here you’ll be able to compare differing credit repair cards by annual percentage rate (APR), as well as take advantage of any special introductory deals being offered. You will also be able to apply directly for some credit repair cards here.

There are three primary things to consider when applying for a credit repair card:

1. Look for the lowest interest rate for purchases – just in case you fail to pay back your bill in full.
2. Check the fees – some may charge late or missed payment fees.
3. The minimum monthly payment – different cards will have different values for the minimum amount of your balance that you must pay back each month.

Credit repair cards are offered to people who are considered to be a “higher-risk” than those borrowers with a better credit score. This means the credit card provider is taking a larger risk than with an ordinary credit card application. As this risk is greater, the credit card firm charges higher APRs than compared to mainstream credit cards.

Some credit cards have APRs that reduce over time as you become considered less of a risk.

Being refused a credit repair card is a warning sign you should not ignore. If you have been refused, don’t be tempted to apply somewhere else – each failed application you make is logged on your credit history. Consequently, you can hurt your credit score even more by making multiple failed applications.

If you haven’t done so already, use our credit check guide to find out more about checking your credit score and how to apply for your credit file.

Credit repair cards are designed for people with a poor or no credit score, which means that these cards do not usually have the lowest interest rates or the same promotional offers available with other types of credit cards. However, some credit repair cards may offer a short introductory offer, such as a 0% APR for the first three months, etc.

Credit repair cards will often have higher interest rates than other credit cards, making them a more expensive way to borrow money. For example, other credit cards tend to have APRs of around 18% to 21%, while credit repair cards in comparison can have APRs of 30% to 45%.

If you are using a credit repair credit card to improve your credit, then it is important that you clear your balance every month. The shows the credit reference agencies that you are able to regularly pay back your debts and will steadily improve your score over time. In addition, the higher interest rates make these cards more expensive to use for balance transfers or to roll-over your balance over many months.

Never miss a repayment due on a credit repair card. Doing so will certainly worsen your credit score – it may even result in your card being suspended and your credit card provider demanding immediate repayment of your outstanding balance.