Credit Building Credit Cards

The answer is most likely a loud ‘YES’. Most people who need credit repair also need more positive credit on their credit report. The biggest problem is this whole thing is a bit of a ‘catch 22’. If your credit is bad and you need to build credit, you cannot get new credit because your credit is bad. You have a bit of a ‘no-win’ situation.

Well, not anymore. YOU DO HAVE OPTIONS! And we give them to you here, but before you start clicking and applying for these credit building credit cards, we want to explain some things about them to you. We also want to tell you how you must handle them to get the most out of using them.

How do I handle a Credit Building Credit Card?

Credit Building Credit Cards are the best tool to rebuild your credit profile if you handle them correctly. This is easy to do. BUT, you have to do it. Here is how it works:

1. You use the credit card for items that you would normally pay cash for. (Remember, before you had the card you were paying cash for everything anyhow! Think of this the same way. Also, many of these cards have small credit limits and some require you to deposit money into them before you use them – like a debit card.)

2. As soon as the purchase posts to the credit card account, you go online and pay off the credit card with the money you would have used to pay for the item. (We don’t know of a credit card company that will not allow you to pay online or over the phone.)

3. When you pay off the purchase right away, you never pay interest on it and that is the key to this credit building process.

Following this process is a sure key to improve the credit score on your credit report. The sad thing is many people don’t know this. Yes, you might have to pay a fee to get the credit card, but once you have it, if you follow these simple instructions the card will cost you nothing. As your credit improves, you will be able to cancel these cards and come back to us for better credit cards that have no fee attached to them. Some of the cards offered below don’t have an annual fee attached to them. However, as we said above, you might need to get 2 – 4 credit cards to start building your positive credit. You can check FreeScore free credit score to monitor how well your credit is improving.

A couple other things you need to know:

  1. Never buy anything you cannot afford to pay cash for.
  2. Never carry a balance on these credit cards at the time they are reporting to the credit bureaus – therefore you must ask them when they report to the credit bureaus.
  3. Always pay the cards off right after the purchase posts to the account. Do this online or over the phone.
  4. Look for cards without a fee, but understand you might have to get one or two that has a fee.
  5. Warning: when you get these cards, your credit score will probably drop for a little while. This is normal. New credit often will reduce a person’s credit score. This is nothing to worry about. Over time as you follow our instructions for paying your credit card, your score will come back stronger than before.