Credit Cards to Build and Improve Your Credit

Use credit cards responsibly to build your credit.

If your credit score is not very good or you do not have any credit history, you may not qualify for traditional credit cards. Build your credit by getting a special type of credit card designed for people with poor credit.

High-Rate Credit Card

If you have poor credit, any credit card offers you get are likely to have very high interest rates. Get a high-rate card and use it responsibly, never charging more than you can afford to pay when the bill comes. By paying your bill in full every month, you will build credit and avoid paying interest charges.

Secured Credit Card

If you cannot qualify for a credit card, ask your bank about getting a secured credit card. You will have to make a deposit into a savings account to get a credit line equal to the amount of your deposit. Make sure the bank reports your payment history to the credit bureaus so you can build your credit by using the secured card.

Retail Credit Card

Retail stores and gas stations often offer credit cards that can only be used at the particular store. These cards are easier than traditional cards for people with poor credit to obtain because they typically have low credit lines and high interest rates.

References

• Bankrate: Best Ways to Establish Credit
• Credit Cards: Four Ways to Re-Establish Credit After Bankruptcy