Bad credit credit cards – can they any help build credit?

Bad credit credit cards are better known as secured credit cards. There have been many of these credit cards developed that were meant to improve your credit score but with a good look at the fine print, we’ve learned that these bad credit credit cards or secured credit cards are beneficial more for the credit card company instead of the consumer.

These bad credit credit cards were almost guaranteed with no credit or employment checks. All that was needed was a security deposit and you’d receive your new credit card within a few weeks. Spend a few extra bucks and you’d get your credit card within a week. Sounds great right? Well, that’s not exactly how it worked out and many consumers have found that all the extra fees and charges placed them right back in the same debt hole they tried to dig themselves out of.

All credit card companies rely heavily on extra fees and maintenance charges, instead of the interest fees. Well, you’d receive your bad credit credit card and realize that $500 loan line was now only $50 after all the initial service charges and application fees you were responsible for. Before charging anything to the card, you had already run up fees and were responsible for a range of charges just for applying for the card.

There are some legitimate bad credit credit cards out there. Just go to a bank to see if they offer a secured credit card. Many banks do and all you have to do is open a secured savings account as collateral without all the extra fees. Bank of America, US Bank and Wells Fargo banks all offer secured credit cards and you can rest assured you won’t be overwhelmed with all the bogus fees. They are reputable banks that can help you rebuild your credit history.

All three banks have online applications and report monthly payment histories to the major credit bureaus. This will allow you to re-establish your credit worthiness. After a time period specified by each bank, they will offer you a regular credit card if you have made all prior payments on time. So those looking for bad credit credit cards and want to take hold of your credit worthiness, look for a reputable bank to deal with.

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