Worried that your bad credit score will never go away? Maybe your credit score is so low that you think it’s useless to even try to rebuild it because it will never happen? Believe it or not, there are millions upon millions of people who are or have been in the same boat you’re in. It really doesn’t take much to ruin your credit when you think about it… you lose your job and have no way to pay your bills, you get a divorce and your former spouse ruins both your credit scores, you have a serious or even catastrophic illness and can’t work… it happens. But, once you’re back on your feet, what can you do to turn around your credit score?
Well, obviously, if there are any old bills that are unpaid or in arrears, the first thing you want to do is to get them paid up to date or paid off, whichever you can afford to do. And you need to keep the payments on those bills current so that you can start rebuilding your payment history, and hopefully, your available credit may improve, depending on whether or not you still have open credit lines on any of your credit cards.
But, what if you have no credit whatsoever? What then? How do you begin to rebuild credit when you have absolutely no credit?
Although it is really hard to get credit when your score is at it’s lowest point, it can be done. Here’s an option to consider if you want to rebuild your credit without having a family member put you on one of their credit cards, cosign for you, etc.:
Secured Credit Cards: Secured credit cards are one of the easiest ways to get an actual credit card when absolutely no one will give you a credit card. Yes, you do have to put up a security deposit that’s typically equal to the line of credit that you’re requesting, but the security deposit will simply sit in an account and you’ll use the card exactly as you would a credit card. You’ll make purchases on the card, you’ll be charged interest, and you’ll make payments on the card. In turn, the credit card company will regularly report your available credit and your good payment history to the credit bureaus, thus helping you to get back on the road to a better credit score. Are there downsides to secured credit cards? Of course there are, but if you’re serious about rebuilding your credit score, then the downsides will be minimal. And you can shop around – some secured credit cards are definitely better than others!
Rebuilding your credit can be done and it doesn’t have to take forever, either. You just have to get started, be diligent, and it will happen!