A missed payment here, a medical collection there, a late payment every so often just until payday rolls around; it doesn’t have to happen, but it does. Not everyone has the capability to have amazing credit and make payments on time, and it doesn’t always have to do with the fact that they are irresponsible with their funds (though some people are completely irresponsible with their funds). There are others who simply hit a rough patch; job loss, divorce, deployment, serious disease. No matter what happened in your life to necessitate the need to rebuild your credit, it’s imperative that you educate yourself fully before you make the attempt.
The Wells Fargo Secured Card is the best card when it comes to rebuilding your credit score. What is a secured card, you ask? A secured card is one that requires you make a deposit before the issuing bank will issue you a credit limit. For example, Wells Fargo is happy to offer people with less than perfect credit a secured credit card with a limit as high as $10,000 and as low as $300. The amount depends entirely on how much cash you have to put down on the card. If you offer Wells Fargo $10,000, they will put it on a card and offer you that as a credit limit. It’s not like a prepaid card, however, you still have to make your monthly payments as you would a credit card, and you will not receive your deposit back until you cancel the card.
How Does this Card Help My Credit Score?
The Wells Fargo secured credit card is the best card for rebuilding a negative credit history. The primary reason is that the bank reports to the major credit bureaus. In addition, the bank also offers the lowest annual fee of almost any other secured card available, which is another way for you to save. The annual fee is only $25, which is significantly lower than other cards that start anywhere from $49 up. Additionally, the annual percentage rate is just about as low as you can get on a secured card at 18.99 percent.
To ensure that your credit is being rebuilt, you’ll want to make on-time payments every month, not max out your credit limit and keep your balance paid in full or lower than 30 percent of your credit limit. The company will periodically review your file to see if you are eligible for a credit limit increase, and may even offer you an unsecured card over time.
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