Recovering from bad credit can be challenging. The first challenge is paying off past defaulted debts or completing a bankruptcy/consumer proposal. The bigger challenge will be finding a company who will be willing to extend credit to you after a history of bad credit.
The first thing consumers miss when their credit goes bad is the loss of their credit cards. More and more we need credit cards to make deposits, secure car rentals and hotels, some utility providers will even look for a credit card as security on your account.
How do you obtain a credit card when no one will approve you? You have to take baby steps. Try starting with a secured credit card. Companies like Capitol One and Home Trust offer secured credit cards. You send them a deposit and then they send you a credit card with a limit that is consistent with your deposit.
The secured card will report to your credit report. After at least 6 month of on time payments the secured credit card granter may return your deposit, or even better, your bank may give you a shot at an unsecured credit card.
If you cannot raise the money for the security deposit to obtain your secured credit card, companies like Prudent Financial offer low rate loans that also report to the credit bureau. If you qualify, you can use the proceeds of your loan to obtain the secured credit card and they even have Home Trust Visa applications in their office!
Avoid credit products like payday loans and pre-paid master cards at all costs. They don't report to your credit report and their fees are sky high. For more information about Prudent loans or how to obtain a secured credit card, visit www.prudentcreditrepair.ca