Banks to Help Rebuild Credit

Several banks will give you the opportunity to re-establish your credit. Whenever your credit history is less than desirable due to bankruptcy, foreclosure, collection accounts or judgments, re-establishing credit is probably going to be your best plan of action. Before you apply, make sure you find the bank offering the most favorable and cost-effective terms and conditions.

U.S. Bank

If you want to rebuild your credit, you may have to pay higher interest rates, along with a number of fees. U.S. Bank will help rebuild your credit with a secured credit card. To obtain an account of this type, you must open a bank account with an initial deposit of $300 to $500. The credit limit on your credit card will be the amount of the deposit in your bank account. Whenever payments are late, money is deducted from your bank account. This type of account keeps you from spending more than you can afford because the credit card is secured by the bank account.

Orchard Bank

Another bank that helps customers rebuild their credit is Orchard Bank. They also have a secured credit card, which has a variable rate of 7.9 percent and the annual fee is not applicable for the first year. Orchard Bank has a, "bad credit" credit card, which comes with a variable annual percentage rate ranging from 14.90 percent to 19.90 percent. Variable rates are tied to certain indexes and if the index increases, the rate can increase, and this eventually leads to an increase in your monthly payment. If you are late with a payment, the default rate can increase to 29.90 percent and this leads to an increase in the amount of finance charges you pay. The annual fee will vary, but it is in the range of $35 to $79. The card also comes with a processing fee of $39.

First Premier Bank

First Premier Bank also helps consumers rebuild their credit with its "bad credit" credit cards. These types of accounts come with a number of fees. Some of these fees are standard, as they are with most credit cards, and other fees are different. When you apply for a credit card, you can expect fees such as a one-time set-up fee of $29, a one-time program fee of $95 and a monthly servicing fee of $7. Other fees applicable to this card include a late charge of $29, and an over-the-limit fee of $29. The annual percentage rate is 9.9 for purchases and cash advances. Extras such as the program fee and set-up fee are applicable upon approval, and your available credit will be reduced by the amount of the fees.