Improve Your Score

A low credit rating used to be a major pain in the neck. But thanks to credit cards for bad credit, people with bad credit scores can actually enjoy the benefits of a credit card and boost their credit ratings at the same time. Here are ways you can improve your credit score with credit cards for bad credit:

Go for secured credit cards. If you want to be strict about your credit card usage, a secured credit card is your best option. Compared to unsecured ones, a secured card requires a deposit, which doubles as your collateral. You can use this amount to help you track your expenses and ensure that you don’t spend way beyond this deposit. Banks that offer secured credit cards for bad credit also report your credit usage to credit bureaus, and this is an excellent way to build positive credit history.

Avoid missing your payments. But in order to build positive credit, you need to pay your credit card on time. You can talk to your lender to extend your due date to one closer to your payday, or set up an automatic monthly payment for your credit card with your bank.

Minimize credit utilization ratio. The rule of thumb is to keep your utilization less than 25% in all your lines of credit, including credit cards for bad credit. If you have a credit line that has more than 50% utilization, pay off this line of credit first and be strict about keeping the others at a low rate.