How Credit Repair Cards Can Help You: Recover from a Low Credit Score with a Bad Credit Credit Card

Failing to keep up with the terms and conditions of various credit agreements will result in an adverse credit repayment history. Most lenders, other than pawnbrokers, advise the three major credit reference agencies (Experian, Equifax and TransUnion) that payment has not been made and/or has been made late. Consumers will consequently find that borrowing money is far more difficult than it once was. If managed correctly, credit repair cards provide a way to gradually recover from a low credit score.

What Are Credit Repair Cards?

It may be possible to recover from a low credit score with the assistance of a bad credit credit card. Specialist lenders underwrite the risk of the borrower defaulting and adjust the interest rate and charges to a level that reflects the likelihood of them not receiving repayment. They work in the same way as a regular charge card, but are more expensive to manage than their mainstream equivalent. The objective of using one is to restore a good credit rating and qualify for other sources of credit in the future.

Recover from a Low Credit Score

Lenders don’t just report when the customer defaults, they also report when a customer has complied with the terms of a credit agreement. Provided that the borrower settles the balance on-time and in full at the end of each month, a consumer’s credit score will start to rise. This won’t happen quickly, but an individual who had their home foreclosed may be able to get a mortgage in just three years. Late payments can be recovered from in as little as just six months. A poor credit history isn’t a life sentence.

Negatives of Credit Repair Cards

A bad credit credit card typically has a low credit limit as well as high charges and/or rate of interest. Whilst they are criticised by some financial commentators for causing unpaid credit card debt, they can also help to rebuild credit. However, those who find it difficult to control their spending may wish to explore other avenues. Acceptance for a prepaid credit card is guaranteed as no credit limit is provided.

A Bad Credit Credit Card to Recover from a Low Credit Score

Although many companies have made millions of dollars by providing false hope, a credit repair card will not restore credit quickly. However, those who are prepared to incur a few charges and settle their balance on-time and in-full each month will be able to rebuild credit in as little as six months. Don’t turn to a bad credit credit card if prone to impulse buying, as debt problems are a lot worse than poor credit.