Credit Building Credit Cards

Credit Building Credit Cards

Credit Building : When you are struggling to rebuild a credit score that has been decimated, credit building credit cards can sometimes be your absolute saving grace. Sometimes the companies that issue these high risk credit cards are the only companies that will actually take a chance on someone like you – someone who many other companies would see as a poor credit risk.

Now, when your credit score designates you as being a poor credit risk, that may or may not be accurate. There are many reasons that people can have low credit ratings, and not all of them are entirely within the control of the individual. Some people have had job losses or medical emergencies that have thrown their entire lives, including their financial situation, into absolute chaos – and it adversely affected their rating. This type of situation does not he to do with poor character, or laziness, or disorganization – or any of the negative personal connotations that society sometimes ascribes to those with poor credit ratings. No, these people were merely doing their best to survive the situation that life handed out to them.

Your situation may be similar to what I’ve described, or you may have had some other type of life catastrophe. Alternatively, you may simply have a history of paying your bills late because of hubris – getting yourself in over your head!

No matter what the reason was that led you to be in a position to need credit history rebuilding, the best strategy is to look forward and figure out the best direction to go from here.

This is where high risk credit cards can really help you rebuild your credit score. Because the limits on these accounts are usually so low, the risk to the lender is mitigated. Therefore, you are much more likely to get accepted for one of these cards than you would for a standard credit account issued by a bank or other mainstream lender.

In addition, these cards are also often secured, meaning that you need to put a deposit into the account prior to being able to charge items on the card. In this way, the lender’s risk is entirely wiped out, which makes secured accounts even easier to come by.

The benefit of these cards is that they give you a blank slate to start proving your fiduciary trustworthiness to the credit bureaus. Even if the limit is low, you can still establish a good pattern of charging items and growing a balance, and then paying down or even paying off that balance on time each month.

It is exactly that sort of spotless record that the credit bureaus want to see you rebuilding, and credit rebuilding credit cards are the perfect place to start establishing that perfect record. They are low risk (to both parties), are comparatively easy to be approved for, and best of all, they provide you with the most valuable thing that anyone in the world could ever want or desire – a second chance.