Statistics show that the average American consumer owes about $9,000 in credit card debt.
It is easy to view credit cards as being “easy money.”
Credit Card Debt Statistics
The advertisements are right to some extent; credit cards can help you when you are trying to repair your credit, if used correctly. The problem is that most people try to repair their credit with horrible credit cards while using the same spending habits that caused their bad credit to begin with.
A large majority of the people who set out to repair their credit, with the aid of a credit card, do so with the wrong credit cards.
The correct way to use a credit card to repair your credit is not to use it. This leaves us with two options: secured credit cards and unsecured credit cards.
Also, using a secured credit card gives you the ability to raise your own credit limit, which strengthens your credit.
As you may know, secured credit cards allow you to raise your credit limit by making additional deposits. Most people are unaware that it makes no difference in your credit score whether you use the credit card or not. In fact, if you do use your credit card and exceed 35% of your credit limit, your credit score will begin to deteriorate.