Let’s just say you’re constantly using your credit card. You unconsciously swipe left and right without thinking about your credit limit. Unfortunately, you racked up a massive amount of credit card bills, and you’re unable to pay all of them on time since you needed to save money for your bills first. A late or missed payment can instantly ruin your credit score, even if it was never your intention. It takes time to build your credit, and in just a snap, it’s all ruined. In times like these, you won’t be able to take out a loan that easily.
Traditional lenders will always look at your credit history before approving your loan. But even one small mistake will not go unnoticed because they want to make sure you can pay on time. So if you need money right now, you can apply for a second chance credit card no security deposit at CreditBono. But let’s understand what second chance credit cards are first.
Get to Know Secured & Unsecured Credit Cards
When applying for a second chance credit card, you need to look for a bank or creditor that will take your application and qualify you for another credit card without checking your credit score. It can be challenging, especially since you need to check if you are eligible for these credit cards. And once you do, you need to determine whether you are applying for a secure credit card or an unsecured credit card.
The big difference between the two is that secured credit cards are quickly approved as long as you make a deposit, which will also be your credit limit. For example, upon opening a secure credit card account, you need to deposit $500. It will become your credit limit too.
On the other hand, unsecured credit cards are those that won’t ask you for a security deposit. Therefore, it’s much better to start with a secured credit card first and build your credit score. Once done, you can transition into an unsecured credit card. Then, depending on your credit card terms, you will receive a refund of your initial deposit and close the account.
Secured Credit Cards will Help Rebuild Your Credit
Having a credit card is the best way to improve your credit score, as long as you manage your account responsibly by paying your bills on time. That’s why some people who had a problem with their credits in the past have a hard time getting approved for another credit card because they fail to realize the importance of paying on time. So if you want to rebuild your credit, the best choice is to start with a secured credit card then work your way through an unsecured credit card.