Rebuilding Your Credit Can be Easier Than You Think

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!

Credit Counseling and Your Credit

As millions of Americans continue to struggle with the financial burden of debt, more and more consumers are looking to credit counseling to find a real way out of debt. Credit counseling allows consumers to consolidate debt into one low monthly payment, regardless of their credit scores. With reduced interest rates on their unsecured debts, consumers can reduce debt quickly – often getting out of debt in just five to seven years, instead of the few decades it would take using traditional payment methods.


One of the main benefits of credit counseling is the fact that it allows a consumer to consolidate debt even if they have bad credit. Most consolidation options require you to have good credit in order to qualify at the right interest rate. By contrast, your credit scores are not a factor for enrolling in a debt management program through a credit counseling agency. Since the credit counselor negotiates with creditors and acts on your behalf, your credit scores are not a factor in getting approved for the program.

Although this make a debt management program a more accessible debt consolidation options versus other debt solutions for a wider range of consumers, it also leads other consumers to be concerned over the affect credit counseling will have on their credit scores moving forward. If your credit scores have not yet been affected by your financial hardship and are still high, you may have a concern that a debt management program will negatively impact your credit rating.

In truth, there is no credit penalty for paying your debts back on the adjusted payment schedule you get with a debt management program. In the U.S. credit system, creditors do not penalize you for paying debts on a different schedule – as long as you pay back everything you owe. As a result, as long as you make the payments to the program on time, you can use a debt management program through a credit counseling agency without incurring any credit penalty.

What’s more, some consumers who have lower credit scores actually see an improvement in their credit scores upon successful completion of a debt management program through a credit counseling agency. If your scores are low then reducing your total debt owed and improving your payment history by making payments on time to your program can actually improve your credit scores. Since debt owed and credit history account for two thirds of your credit score calculation, improving these two factors through credit counseling can provide a big benefit.

Connie Solidad has been writing about finances and debt consolidation for years. She’s an expert in the industry and writes about credit counseling and debt management options. When Connie is not working, she loves playing with her two dogs in Tampa, Florida. To learn more about debt consolidation counseling refer to ConsolidatedCredit.org

How Do You Know If You Have Credit?

How do you know if you have credit? Believe it or not, almost all of us have some type of credit history, unless you’ve paid cash all of your life, or if you’re just starting out and have yet to need credit for anything. But, you’d be surprised at how many people don’t actually know if they have credit or what their credit score is! And, frankly those people who don’t know if they have credit are actually risking their future ability to obtain credit by not knowing.

These days, you owe it to yourself to know if you have credit, and to keep a close eye on your credit report. With identity theft and fraudulent use of credit on the rise, it’s more important than ever to protect yourself, and to know your credit history and your credit score.

Imagine, if you will, that you go to apply for a car loan… only to find out that you already have a car loan… or a mortgage… only to find out you already have a mortgage in your name… don’t think that this cannot happen to you! In fact, this type of identity theft is far more common that you realize, and it nearly always happens to people who either have no credit history or have an excellent credit history.

Another reason that you should know if you have credit, and what that credit score happens to be, is so that you can get the credit you need when you need it. Want to get a credit card? Buy a car? Rent an apartment? Buy a house? Before you even apply for that first credit card, you’d better know your credit score! And, forget going to look at cars, houses, or anything else without knowing your score, and having the score that your lender is looking for! (Besides, who wants to be embarrassed at being told “No” when you do go to buy something on credit?)

So, in answer to the question “how do you know if you have credit,” the best answer is not only to get a copy of your credit report, but to have your credit report monitored on a regular basis by a reputable credit monitoring company. A reputable credit monitoring company will notify you when there are changes to your credit report and you typically have access any time that you want to your most current credit score, so you know before you go whether or not you’ll qualify for that credit card, that car loan, or anything else!

Getting Credit Cards With Bad Credit

Regardless of whether you have bad credit or not, getting a credit card is still possible. A person with bad credit may apply for a secured credit card and be approved. Secured credit cards involve using collateral as a basis for non-payment. This option should be used with extreme care.

What can be used for collateral?

A person who has bad credit can use his or her home as a guarantee. Based on the value of the home, a bad credit, credit card may be issued. If you default on the payment terms the bank issuing the card has the right to take the home used for collateral.

Some financial companies charge an annual fee and higher interest rates to those who have bad credit. Variable rate credit cards are also available. Many disclosures must be submitted to qualify for this type of credit card. The interest rate will vary on this as the market fluctuates but this may get you “in the door”.

What are other options to find a credit card with bad credit?

Using the internet to find and compare the fees for cards issued to people with bad credit. There are many sites available to financial institutions willing to work with low credit score individuals. With this option, applications can be submitted online.

A debit card that can be used with a credit card option is also a good choice. When using a card of this nature, the funds are taken out directly from your bank account with no interest accumulated. The card must have a Mastercard or Visa logo imprinted on it.

Unsecured credit cards are also available but will be difficult to be approved for as the bank has no encouragement to issue a card to a high risk individual. If approval is received for this type, the interest rates will be extremely high.

Secured credit cards are given to those who have credit but bad experience or to persons who have no credit. The credit line is usually low with both types.

Improving bad credit rating to obtain a credit card

Obtaining a copy of your credit report is an important step in getting a credit card with bad credit. Occasionally items that should not be on the report will be found and removed. Also if any suspicious activity is seen on a credit report it may be disputed and removed by contacting the appropriate authorities and the lending institution. The removal of items will also increase the credit rating leading to higher chances of being approved by financial lending institution for a card.

More methods are also available but always take caution when apply for and selecting a provider to prevent fees from being taken out of your bank account.

Article Source: http://www.articlesbase.com/credit-articles/getting-credit-cards-with-bad-credit-1052026.html

About the Author

The author runs several finance related websites, including sites that specialize in bad credit credit cards. Visit their website for a wide selection of credit cards for bad credit.

Credit Cards for Bad Credit Help Fix Credit Reports

Both secured and unsecured credit cards for bad credit clients are really attainable but, because of the liability of default, the tenures are totally different. The glad report is that those who make routine installments to their bad credit status card will begin to solve credit reports and fix bad credit. This could imply that prevailing financial items will become attainable in the near future.

Choosing a credit card for bad credit

The excellent credit card proffers are only attainable when security is pledged. This is because people who have defraud on their credit tenure or announced credit card bankruptcy represents too big a risk to money providers. Chances involve the new millennium bank secured platinum card, first premier platinum master card, applied bank secured visa.

Unsecured credit cards for bad credit will firstly proffer a lower credit level than a secured alternative. If sanctioned, a credit level of at least two hundred and fifty dollars will be proffered to clients. This sum will be reevaluated every six months so it could be hiked.

There is a yearly charge of forty eight dollars, an account set up fee of twenty nine dollars, a program charge of ninety five dollars and a monthly servicing charge of seven dollars. It is likely to utilize up to ten percent of any attainable credit level to enjoy advance money, even though this may hike one two months installments have been made.

A credit evaluation will be carried out to establish eligibility which may imply that it isn´t appropriate for those who have announced credit card bankruptcy. Nevertheless, it could be one of the excellent credit cards for bad credit proffers for those who have other previous repayment indiscretions.

MasterCard for bad credit

This is one of the excellent cards because no credit evaluation is imperative, nor are there any particular earning requirements. Routine installments will be reported to credit evaluation agencies so your bad credit rating will begin to eventually improve.

It proffers clients a credit level of up to five thousand dollars and a comfortable rate of interest of just nine points nine nine percent APR. It is vital to notify that the first credit limit will be equal to the primary deposit.

Secured credit cards for bad credit

Clients could be proffered a credit limit up to ten thousand dollars. No credit evaluation is imperative which signifies that it is one of various viable credit cards for bad credit. The main advantages contain up to one lakh dollars of travel accident insurance, extended warranty on purchases and the provision of auto rental insurance.


Article Source: http://www.articlesbase.com/business-ideas-articles/credit-cards-for-bad-credit-help-to-fix-credit-reports-3225444.html

About the Author

Spencer Scott is author of No Credit Check Credit Cards.

Welcome to the Easiest Credit Card to Get!

Welcome to the Easiest Credit Card to Get!   We started this site for people who, for whatever reason, have trouble qualifying for credit cards.  Whether you have bad credit or no credit, we’re sure to have a couple of cards that will work for you.   And, our online applications links are safe and secure!  We link directly to the credit card application, and we don’t collect ANY of your personal information for any reason, so you won’t be getting emails, phone calls, or even snail mail from our site. 

Thanks for stopping by and we hope you’ll check back often!