To repair your credit with credit cards, obtaining a secured credit card is a good option. Secured credit card is targeted specifically to people with bad credit. When applying for a secured credit card, you are required to place with the secure credit card issuer an initial deposit equal to the amount of your credit limit; that is, you will have a credit limit of $1,000 if you place a deposit of $1,000. The issuer has the right to deduct from your deposit any outstanding balance on your card statement that you fail to pay on time.
This plan thus benefits both you and the issuer; in other words the issuer carries no risk thanks to your initial deposit, and you will not fall into your old habit of being behind on or failing to make payment,
Once you have received your secured credit card, you must start practicing good money management habits in order to repair your credit. Use the card but use it sparingly, and also make sure you pay on time. By doing so, you are demonstrating to your creditors that you can be trusted and are responsible, and in this way you will slowly repair your credit.
If you do not take any steps towards credit repair, the credit reporting agency will negatively mark your credit report for seven years, so that you will not be able to get any credit or loan for all those years. By taking a positive step towards credit repair such as by applying for a secured credit card and using it responsibly, you will not have to wait that long to get good credit again.
