Repair your credit and not pay any interest or fees? Yes please!

Credit cards can be a great way to improve your credit – if you use them well. By keeping your credit card balance below 30% of the limit and paying it off in full every single month, you can build a great credit history without having to spend a penny on interest.

If you have no or poor credit history, you might find it difficult to qualify for a credit card. That’s where secured credit cards come in. If you save up a certain amount of money in your savings account (let’s say $250), you can use that money to insure, or collateralize, a secured credit card. The $250 would remain frozen in your savings account and if you used the card and then failed to make payments, those funds would be used to pay off the debt and close the card. If you use the card responsibly and always make at least your minimum monthly payment, that $250 is released once the card is closed or you apply for the card to become unsecured.

Once opened, that secured card can be used like any other card, its payment history will be reported to the credit bureaus just like any other card, and it can be a great credit-building tool. Even if you have a bad credit report, getting some good loan information can be a big boost!