It might sound strange to rebuild your credit card rating with another credit card, but to be perfectly honest there are few ways better at doing this, other than paying your bills on time every time for a substantial amount of time. You see, the point behind improving your credit rating…
The point behind it is to make the lenders think that you are capable of handling certainl levels of credit and applying only for what you can handle. If you can show that you have paid off your debts and you continue to pay your bills on time and you are not in any bad debt programs or anything like that, then you may be able to proceed to build your rating again.
It won’t be easy, and credit card companies are not going to make it easy for you to regain your rating. Where they didn’t used to mind if you defaulted before (simply because of all the interest they charged), now they can’t afford to let you get away with it. This is the reason that most credit cards that exist to help you rebuild your credit rating have a very high interest rate. The types of interest rates you’re looking at are as follows: [these are from the leading credit building credit card companies at the moment]
- Capital One Progress Credit Card – 34.9% interest
- Barclaycard Initial – 29.9% interest
- Capital One Classic – 34.9% interest
- Vanquis Visa – 39.9% interest
They all have their individual pros and cons, but the object of this post is to simply tell you that you have to watch out for the interest rates on these babies because if you mess them up then you’ve missed your chance and that’s all there is to it.
Tags: Bad credit cards, Bad debt, credit cards