Rebuild Credit: Cards for Bad Credit, Credit Cards for Poor Credit

Rebuild Credit: Cards for Bad Credit, Credit Cards for Poor Credit

Posted in Articles by Jessica

Rebuild Credit: Cards for Bad Credit, Credit Cards for Poor Credit

Repairing and rebuilding your credit is possible if you know how to go about it. To get rid of negative credit history, you should opt for the credit rebuilding option. Many times, you may not be approved for a loan or a credit card due to your bad credit score on the report. In order to increase your credit score to a higher level, you need to rebuild your bad credit. Only after that, you will be able to get a loan approval and better interest rates on your credit cards. In simple terms, this signifies that you can handle credit responsibly. You may find it difficult as you start to rebuild your credit score but once you build the momentum, it’ll be easier for you to build a good credit score in a shorter period of time.

Many credit card users who face the issue of bad credit often take the step to cancel all of their credit cards. Actually, it should be the other way around. This is because by using a credit card, you will be able to establish a positive payment history so you can rebuild credit easily.You might find it difficult getting the approval for a credit card as most of the time the major banks reject applications from those who have bad credit scores. Furthermore, you should also keep a track of your credit scores on a regular basis. This is because, you need to monitor the score if your want to improve it.

After you get approved for a new bad credit credit card, you must start building the habit of maintaining a good credit score. You should start with replacing your credit damaging spending habits with some new ones. Remember that you need to improve your credit score, not to damage it. Otherwise, you will again end up in a situation of the bad credit. Use the credit wisely and buy only those things that you can afford. If you want, you can also consult with the financial advisors to get tips on how to manage your expenditures. 

Always pay all your bills on time. Make a list of bills that you need to pay and start paying each one on time. If you want, you can also keep reminders so you won’t forget to pay any of your bills. Avoid delinquencies in any situation and on any account even if it is a small one. Since a number of companies use the help of collection agencies to follow up on unpaid bills, there is a higher chance of bad credit if your case lands in the hands of any of these debt-collector agencies. These agencies in fact send reports directly to the credit score bureaus and such history goes on your report for seven long years. It can also ruin your progress if you have made any in the process of rebuilding your credit score so far.

Put all of your good credit habits into practice so you can build a good credit score in a quicker period of time. Remember that your bad credit won’t improve until creditors know that you have what it takes to build that good credit score. In short, you always have to ensure that you opt for what you can afford. Also, you need to ensure that you pay all your bills on time each month. During this rebuilding period, you also have to make sure not to have too many credit cards and manage all your balances and payments wisely. 

Fortunately, you still have some options to get credit cards even if you have bad credit. In fact, there are several banks who offer specific credit cards for bad credit. For getting a credit card for bad credit, you could look out for options in your local banks. Sometimes, these local bank branches offer several options for bad credit credit cards. Also check for department store and gas credit cards as these options are easy to get approved. Furthermore, you can also look for the secured credit card options. However, you need to be careful when you apply for any new credit card as too many applications will affect your credit score again. Moreover, it will make the situation much harder for you to get approved for a new loan or credit card.

Also remember to check all the details before signing up for any credit credit cards as there are numerous scams out there. You need to also check if the credit card issuers are charging high interest rates and high transaction fees. In such cases, the credit card becomes unaffordable and you will again find yourself right back in debt with damaged credit. As a result, you will be unable to rebuild your bad credit score. You should also avoid having prepaid credit cards as these cards don’t actually help you to build your credit score. Most of these prepaid credit cards don’t report to the credit bureaus so your credit score won’t improve even if you opt for a new prepaid credit card.

If your credit card application is denied by a bank, don’t apply for another card immediately. Instead, wait for the denial letter and check it carefully to find out the exact reason for why the credit card application was denied. Sometimes, the banks turn down applications for several other reasons besides having bad credit. Thus, there might be chances that your application was denied not for your credit score, but for some other factor like personal income.

No one would ever want to go back to the same situation of bad credit once they are out of it. Although the present economy is still in a bad situation, the record of foreclosures and credit card defaults are comparatively less over the past couple of years. It's not difficult for you to come out of a bad credit situation. If your credit score is below 600, then you can certainly follow the above mentioned ways to improve your credit score. Of course, it will be a little harder in the beginning but you need to ensure that you stick with your rules so you can rebuild your credit easily. 

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