Clearing off your credit card debts on time is the best way to maintain a good credit score. But at times, when you fall behind, your score is at stake. Though one or two such missteps won’t really affect you but if you pile up on your defaults it would take you years to come out of the rut. The foremost thing is to realize that it is possible to rebuild ones credit scores. To dig out of the hole, all one needs is to take decisions that are financially prudent.
The general conception is to avoid going for a new credit card altogether. This too can backfire because the average length of your account, and the age of your most recent credit account may also impact your credit score. This means you just cannot afford to do away with your card. How then to rebuild your credit score? One of the best ways to rebuild your score is to establish good credit by procuring a secured credit card, with a fixed credit limit and linked to a savings account.
With such cards the limit is equivalent to your deposit and so chances of your overspending get reduced. Some such cards include:
Citi Secured MasterCard:
With this card your standard savings account is changed into a 18-month CD savings account. This entitles you to earn 1.01 annual percentage yields.
Capital One Secured MasterCard:
With this card you get a credit monitoring tool. This enables one to keep track of their credit score. Though it comes with a high interest rate of 22.9 percent, the annual fee is affordable at $29.
Wells Fargo Secured Card:
Those who use the card responsibly are provided with an unsecured credit card. For this card ones deposit can be anywhere from $300 to $10,000. The annual fee is just $25.
US Bank Secured Visa Card:
This bank offers a quick unsecured card at an annual fee of $35. One can qualify for this card in as little as 12 months.
Navy Federal Credit Union n Rewards Card:
Though nothing can beat the advantages of this card, but to qualify for this you need to be in the armed forces or directly related to some one in the military. It comes with no annual fee and the annual percentage rate (APR) is as low as 8.9 percent. Besides, one can also avail a generous 25-day grace period on purchases.