by Dan Moskel

Getting a credit card to help rebuild your credit history is a very wise decision. A credit card can help you create a positive payment history.

This is how you will build positive credit to your damaged score. Unfortunately because of your low score you will have to pay higher interest rates.

It is still important to remove bad credit items from your credit report. However it has been learned that after a bad credit item ages 4 years it will damage your score much less.

On your card you will have to pay an annual fee and a high interest rate. Unfortunately this is an unavoidable cost, however with proper use you can ensure this is the last time you will have to pay high interest rates.

Your card will have a credit limit around $300. The other alternative is to get a secured credit card.

With a secured card you will have to put an initial deposit down and how ever much your deposit is that will be your available credit. The benefit of a secured card is that they approve everyone.

With an unsecured card it will be instant approval and your payments and balance will be reported to all major credit bureaus. It is important to double check and make sure your credit card will report to all three credit bureaus.

In addition your credit will get the most benefit if you can keep your monthly balance at 10% of your credit limit. For example if your credit limit is $300 then you want your monthly balance to be $30.

This will help because it shows; you use your credit, and use it responsibly. In addition having available credit will increase your available credit to debt ratio, this shows the bureaus that you are not in over your head.

The other alternative for a credit card is a shopping card. This card is only accepted through a designated catalog or through a website. These cards often only report to one credit bureau and have large fees.

A prepaid card is another option. This is a good choice if you are unable to open a checking account because this card will work just like a bank account.

In sum we suggest a sub prime unsecured credit card. This will give your credit score the most benefit because it will increase your ratio of available credit to debt and help you create a positive payment history.

About the Author:
We suggest the Tribute MasterCard an unsecured credit card to see a review visit us or here is an ezine article about non chexsystem checking accounts.