Can Second Chance Credit Cards Help You Rebuild Your Credit?
Filing for bankruptcy can lower your credit score, but not everyone who has trouble qualifying for credit cards has a history of bankruptcy filings. The more common problem is that it is hard to get started building your credit, especially in an economy where most people who work full-time live paycheck to paycheck. To make matters worse, simply paying your rent and utilities on time does not boost your credit score very much, if at all, and the same goes for making payments on buy now pay later (BNPL) purchases on time. Conventional wisdom says that the best way to get started qualifying for credit cards is to open a secured credit card, where you pay a deposit, usually a $200 deposit for a card with a $200 credit limit and, if you make timely payments, the card reverts to unsecured and the credit limit gradually increases. Most of us don’t have $200 sitting around to open a secured credit card, though. The good news is that various “second chance” credit cards are available. These are unsecured credit cards that start out with a low credit limit and increase it over time if you keep making timely payments. To find out more about second chance credit cards and other ways of rebuilding your credit, contact a Boca Raton credit repair lawyer.
Best Second Chance Credit Cards That Do Not Require a Security Deposit
There are plenty of second chance credit cards available on the market. These are the ones that the Forbes website recommends most highly:
- Capital One QuicksilverOne Cash Rewards Credit Card – Forbes recommends this card because, out of all the second chance cards available, this one provides the best opportunities for cash back rewards. Even better, the rewards don’t expire, and you become eligible for a credit limit increase after six months. Unfortunately, though, it is not the easiest card to qualify for.
- Petal 2 Cash Back No Fees Visa – Applying for this credit card cannot adversely affect your score, since it uses the soft pull method. It is excellent for applicants with no credit history, but not for those whose credit scores are low because of bankruptcy filings or nonpayment of debts.
- Capital One Platinum Credit Card – Forbes recommends the Capital One Platinum Credit Card because it has no annual fee and because you can get approved for it even if your credit score is low. The downsides to this credit card are its high annual percentage rate and the three percent fees associated with cash advances. Therefore, it is best only to apply for this card if you are confident that you can use it without carrying a high balance.
Contact a South Florida Debt Lawyer About Rebuilding Your Credit With Low-Risk Credit Cards
A South Florida debt lawyer can help you recover your creditworthiness instead of falling back into a cycle of debt when you start to use credit cards again after a bankruptcy filing. Contact Nowack & Olson, PLLC in Boca Raton, Florida to discuss your case.