When you've defaulted on the terms and conditions of your credit agreement, bad credit will show on your credit report for the next 7 years. If you plan to apply for a mortgage, unsecured loan, car refinancing or a private student loan you may wish to use credit-building credit cards to help repair your credit score. Don't believe credit repair companies that claim to be able improve your credit score overnight or get you a completely new credit report. This simply isn't legally possible if you've recently defaulted.
Types of Credit-building Credit Cards to Fix Your Credit Score
Although there is no such thing as rapid credit repair, there are several different credit cards to rebuild credit. Credit-building unsecured and secured credit cards report to credit reference agencies each month so each punctual repayment will lead to a gradual credit score improvement.
Best Unsecured Credit Cards to Rebuild Credit
If you aren't able to offer the issuer collateral, an unsecured card can help to fix your credit score. It's important to appreciate that the initial limit is likely to be just $250. There are also several charges that must be cleared before using the card so that you have some credit to work with.
