subject: Bad Credit Credit Cards - How to Use Them to Change the Way Lenders Look at You Forever [print this page] Bad Credit Credit Cards - How to Use Them to Change the Way Lenders Look at You Forever
If your credit has been damaged, due to bankruptcy or some other financial disaster, you'll need to rebuild your credit with a "bad credit" credit card. These are loans with specific conditions that need to be met by the borrower (you) but they are designed to help rebuild your credit.
I'll show you how to use them and change the way lenders look at you.
Re-establishing Your Credit
So how can you re-establish your credit if you can't get a credit card? The answer is simple, you need to get a secured credit card. A secured credit card basically operates much the same way that a regular card does except there's one minor difference.
The difference between a regular credit card and a secured credit card is that you need to make a deposit against the limit of your account. The creditor then uses this deposit as security in case you default on your credit card payments.
The credit limit on your secured card will usually be 50% to 100% of your deposit For example, if you put a $100 deposit on your secured card, your limit will be between $50 and $100.
Fees
There are some fees associated with secured cards that you will not find with regular cards. Including application fees, processing fees and annual fees.
When doing your research on secured credit cards, watch out for cards with high fees, because they will reduce your deposit amount and credit limit.
Most bad credit issues result from poor payment habits. A secured credit card is a great way to demonstrate your improved payment habits to the lender and show them that you are a responsible credit card user.
The Application Process
During your secured credit card application, make sure that the creditor reports to all 3 major credit bureaus. This is important because it will help you to re-establish your credit by allowing creditors to have access to your payment history
because it will be included in your credit report and reflected in your credit score.
After you've been approved for a secured credit card, remember that the point of having a secured card is to rebuild your credit history. Use your card to make small purchases that you know you can pay off every month.
Making the transition
You should be able to make the transition back to a regular credit card once you've shown a history of regular payments after 1 or 2 years.
However, if your application is denied, don't repeatedly apply for new credit cards, as these show up on your credit report and will hurt your score. Instead, keep making your regular, on time payments and try again in 6 months.
I want to be real with you. It is very unlikely that you will significantly improve your credit rating in thirty days as some people promise, but you should see some improvement in thirty days after you follow the tips for using a secured credit card.
Everyone's situation is different. In some cases only minor tweaking is required and thirty days might do it.
Watch over my shoulder as I show you how to easily repair your credit
