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Top 4 Credit Cards to Help Rebuild Good Credit

Updated on May 10, 2016

Nothing sucks worse than having bad credit, right? But, for the fortunate few who appears ready and able to get back on track, there are several options available in the form of financial products that cater to such rebuilding efforts. The thing about having bad credit and wanting to immediately have good credit is this: It never truly happens overnight. A paradox of sort: In a nutshell, you need some kind of credit to have good credit….and you need good credit to have good overall personal finances. But here’s the thing that most consumers fail to realize: Bad credit is the result of bad financial behavior over a period of time, (be it, excessive credit overload, personal financial mismanagement, or even worse, impulsive spending behavior). Nevertheless, for those looking to re-establish his or her credit, (but not sure which way to turn) the following four credit card rebuilding tips should serve to help guide you along the way

#4 Subprime Credit Cards Isn’t Always Below Average…

What’s subprime? Subprime just means below prime, which in laymen’s terms translate to below average. Thus, it goes without reason why subprime credit cards are so heavily demonized by financial gurus from within the financial media. Typically, they’re not the type of financial product(s) you would think of when trying to add value to your personal finances. The reason being is this: fees, fees, and more fees. Nonetheless, for credit rebuilding purposes, subprime credit cards, (or any decent card you can get approved for with subprime FICO scores) you’ll find will have a great deal of value—especially in regards to its ability to report timely payments to the three major credit bureaus (Equifax, Transunion and Experian). By in large, the subprime credit card market is led by the major players in First Premier, Credit One and Capital One. Of the three, Capital One’s Platinum Card is considered by most to be the better option. In theory, any great subprime financial product should be geared towards rebuilding your credit, which is what this card appears to be all about. In fact, Capital One is notoriously known for being very generous, giving its subprime customers a chance at prime card status in as little as a year.

#3 Retail Credit Cards Great For Rebuilding Credit…

Another great credit card for rebuilding purposes are retail cards. What’s a retail card? A retail or store credit card is a kind of revolving credit line established by a department store (i.e., Macy’s, Dillard, or even a Kay Jewelers). The reason you should apply for a retail is threefold: 1) They tend to have lower credit criteria than a traditional credit card, thus are easier to get approved for; and 2) They tend to be quite generous in the rewards department, offering its customers discounts on purchases; and more importantly 3) THEY REGULARLY REPORT TO ALL THREE MAJOR CREDIT BUREAUS. Buyer beware: Retail credit cards tend to have higher annual percentages rates (APRs), which can reach as high as 29.99%. This particular downside shouldn’t deter you, especially since the main goal of credit rebuilding is to CHARGE ONLY WHAT YOU CAN AFFORD TO PAY OFF EACH MONTH.

#2 Gas Credit Cards Are Great Additions to Your Wallet…

What can be good about owning a gas credit card? Everything: First, gas credit cards, just like retail credit cards exist to facilitate the transactions of some kind of specialized consumer good, be it clothing, jewelry, or in this case…automotive fuel. Everyone needs gas, right? Thus, it goes without saying what adding a gas card to your wallet should mean to your long-term personal financial goals. To say the least, one trick you could use to rebuild your credit in a relatively short period of time is to simply just fill up your tank once or twice a month (for twelve months, of course) and then pay your bill in full each month. Doing this will help establish a positive payment pattern, which is one of the main criteria scored by FICO’s scoring model.

#1 Secured Credit Cards Heralded as The Best…

In the world of personal financial rehabilitation, there could be no better financial product than the secured credit card. The name says it all: Unlike a normal bank unsecured credit card, with a secured credit card, you have to secure your own line of credit (i.e., make a cash deposit of some kind). Aside from that, there’s no real difference between the two financial products. Moreover, the secured card acts just like a traditional credit card, helping to expedite consumer products and services from within the marketplace. Perhaps an added features of owning a secured credit cards is this: After only just a year or so of steady, on-time payments, the bank will normally consider you for an unsecured credit card, thus allowing you to get back on track financially.


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