Having a bad credit score is not the end of the world, but it can be frustrating. You can't get approved for loans that easily, and if you do, you'll pay way more interest than everyone around you.
The only option is to have a credit builder card, more popularly called a secured card, that helps build credit.
A secured credit card is one of the simplest ways to rebuild your credit history. Usually, it provides a small line of credit that you can use to make purchases and pay off each month. The card issuer will charge an upfront fee for the security deposit required on the account. But the Zolve Credit Builder Card doesn't require you to put in an upfront deposit to use the credit card. Instead, whatever money you add to the account will act as your credit card limit and help you quickly build a solid credit score.
In this blog, we'll go through the steps you can take to rebuild your credit with a secured credit builder card and the benefits of using one.
- Choosing the right secured credit builder card
The first step to rebuilding your credit with a secured credit builder card is to choose the right one. Several secured credit builder cards are available, and it's essential to compare their features and fees before choosing one. Some important factors to consider when choosing a secured credit builder card are
- Annual fee: Don't let a high annual fee weigh down your finances like a lead balloon - find a secured credit builder card with a low or no fee and keep your pockets as light as your credit score soars.
- Interest rate: Choose a secured credit builder card with a low-interest rate. A high-interest rate will only add to your debt, making it harder to repay.
- Credit limit: The credit limit on a secured credit builder card is usually equal to the security deposit. Choose a card with a security deposit that fits your needs and budget.
- Rewards program: Some secured credit builder cards offer rewards for purchases, such as cashback or points. This can be a great way to earn something back while you're working on rebuilding your credit.
You're in luck because the Zolve Azpire - Credit Builder Card comes with no annual fee, no interest rate, no credit limit, and an awesome cashback program that earns you up to 10% cashback on your spending!
2. Make a security deposit
Step two on your journey to a fantastic credit score: find the perfect security deposit for your secured credit builder card. This deposit is a safety net for the lender and assures you'll make your payments on time. Just read the fine print before diving in, and you'll be on your way to a better credit history in no time! But this also means that your security deposit will stay parked up and cannot be used by you until you close that account. Instead, go for a credit card that has no security deposit to block.
The good news is: the Zolve Azpire - Credit Builder Card comes with no locked-in security deposit. So you stay liquidated whenever you want. The amount you add in fully becomes your credit limit which builds your credit score.
3. Use your secured credit builder card responsibly
Rebuilding your credit is like putting together a puzzle - every piece counts! Here's how to effectively use your secured credit builder card:
- Make on-time payments: Pay your bill like clockwork to keep your payment history on track and avoid late fees.
- Keep your outstanding balance low: High credit card balances are a big no-no for a healthy credit score. Try to keep your balance down by paying it off each month.
- Less is more: Every time you apply for credit, it appears on your report. Too many applications can reduce your score, so limit your credit card applications to what you need.
Once you get the Zolve Azpire - Credit Builder Card, you will never have to worry about late payments or outstanding balances. It comes with two additional and essential features: Auto-sweep and Auto-pay. You enable them on the Zolve app and get the advantage of never missing a payment and ensuring you never overspend!
4. Monitor your credit score
Rebuilding your credit is a journey, and keeping a watchful eye on your credit score is key. Once you have everything else noted, the last bit is to keep monitoring your credit score regularly. Fortunately, you don't have to pay a fortune to do so. With Zolve, you can stay updated on your credit score, how to ensure it goes up, and the factors affecting it.
This way, you can stay on top of your progress and nip any errors or hiccups in the bud.
It doesn't cost you anything to try again, and anything that gets you in the habit of using credit responsibly is a step in the right direction. If you've got bad credit or want to build one from scratch but don’t want to pay for an expensive secured credit card, you should consider the Zolve Azpire - Credit Builder Card.