Prescribing the Symptom: Credit Card Application As a Method of Credit Repair
Contributed by Alix Mcmurray
Prescribing the Symptom: Credit Card Application As a Method of Credit Repair
It might sound a bit ironic, suggesting to someone with bad or damaged credit, "Hey, go ahead with that credit card application! " Isn't that a waste of time, even a bit cruel, like suggesting a body wax to a hairless cat? Well, you may be surprised, but there are credit cards out there for those with damaged or "bad" credit, and the use of these cards can actually repair your credit rating.
Online Credit Card Application Options
Cards specifically designed for credit repair have many features in common: monthly reporting to the major credit bureaus,online access to your account, and the acceptability of a "straight" credit card such as MasterCard, VISA, or American Express. Do take note of the differences in Annual Percentage Rates (APRs) however, which can run the gamut from 9.9 to 19 percent for purchases and almost 25 percent for cash advances!
Restrictions and Expectations in the Credit Card Application
There are definitely some limiting factors to these credit repair credit cards, but they are easy to determine up front. For instance, some don't allow the residents of specific states to apply. Others match a credit limit to a deposit you've made to your account, making them similar to prepaid credit cards. This prepay feature usually goes with no employment verification. For those credit card applications which do verify employment, the minimum gross annual salary required is usually between $10,000 and $12,000.
