Q: I would like to rebuild my credit in 2016. What are the best “second chance” credit cards?
A: If you have a bad credit and would like to have a second chance to start building a positive credit history then the best place to start would be with a secured credit card – which involves placing a security deposit with the issuing bank. Many of the secured cards on the market offer the following benefits:
Reports To Credit Bureaus: All the good secured second chance credit cards will report your account to the bureaus each and every month. After your first billing cycle closes, the account should show up on your credit report 30 days later.
100% Guaranteed Approval: You can have the worst credit history known to man and still get approved for a secured card, as long as you meet the bank’s basic guidelines such as living in the United States, having a Social Security number, be 18 years or older, etc. Approval is not based on your credit history.
You Control The Credit Limit: With a secured card you can control the credit limit, which is typically the same as your security deposit. So these are a great card because they give you the ability to start off with a high limit.
Treated Like a Normal Credit Card: In case you were wondering, secured cards will have no distinguishing marks or words that identifies them as being secured. Secured credit cards report to the credit bureau just like a regular credit card. A secured second chance credit card can be a bridge to bigger and better things, if you manage it properly. If you pay your bill on time each month hopefully before the first year is up, you will be able to qualify for basic unsecured cards that are a step up, such as an entry-level gas station card or department store card, both of which can help you rebuild credit.