Easiest Way to Rebuild Your Credit

You’ve got bad credit, really bad credit. The kind of credit that makes car dealers laugh and employers cringe. You never really worried about your credit when you were young, but now it’s coming back to bite you in the butt. You can’t get a better job or a more fuel efficient car without passing a credit check, and you’re living paycheck to paycheck. You have a prepaid cell phone because you can’t afford one of those expensive plans. You’ve already eliminated all unnecessary bills, except Netflix. Hey, everybody has one vice, right? You have finally stabilized your financial situation, and you’re not accumulating any new debt. However, you have no savings to fall back on, and you think anything that will help rebuild your credit would be way out of your price range. Does that sound about right? I am here to tell you that there is an easy way to rebuild your horrible credit.

When we were kids, we used to look forward to Christmas and all the gifts we got from Santa. Now that we’re adults, we look forward to that magical time of year called tax season. That wonderful gift we get from the IRS that comes in a gold envelope and has a picture of Lady Liberty on it can change your life. You don’t even have to use all of it, just a teeny, tiny piece. Before you go on that annual shopping spree, and spend your last dollar on those chrome rims that you’ve been eyeing or that Prada bag you’ve always wanted, take a few minutes to give your finances a boost that will change your life.

Get a secured credit card. It is the easiest, cheapest, fastest way to turn your sad, sick, little 465 into a healthy, respectable 730. A secured credit card is kind of like a more secure version of a savings account. When I say secure, I mean it is secure from you accidentally nickel & dime-ing it into oblivion and being stuck with nothing but an empty account. Every time you think about using it, you have to decide if you will be able to afford to pay the bill off quickly so you waste as little money as possible on interest. It's really a great deterrent against needless spending. You put however much you want on the card to secure your credit limit. I recommend $500, to give yourself a nice cushion in case of an emergency. You need a plane ticket to go to your sister’s wedding. A dog ran in front of you on the road, you swerved, hit a curb and blew your tire out. Your son ran over his last pair glasses with his bike when he tried to jump it off a ramp. You know. The usual stuff.

All you have to do is set a small monthly bill, like your Netflix bill, to be paid with your secured card. Pay the entire balance in full every month to avoid paying as much interest as possible and maintain the maximum credit limit available to you. This shows the credit bureaus that you’re a responsible adult, despite what your mother says, that pays your bills, and you are worthy of a higher credit score. Keep your bill paid on time, and by next tax season, you will have a much better credit profile. You’ll be able to get that little car to replace the gas hog you’re cruising in now. You can finally go after that job that requires the credit check that kept you from even applying before.

Before choosing a credit card, there are a few things you should ask.

1. How much does the credit card company charge? The best cards are the ones that do not charge an application fee, have a low annual fee (less than $75 in most cases) and have a lower interest rate.
2. Does the credit card company report to all 3 major credit bureaus? This is really the most important thing. If they are only reporting to one or two bureaus, you’re not getting the most bang for your buck. If they’re not reporting at all, you’re basically throwing your hard earned cash into someone else’s pocket without getting anything in return except a shiny, plastic card.
3. Is it a “secured credit card” or a “prepaid credit/debit card?” There is a huge difference. A prepaid credit/debit card is just a way to use cash for electronic transactions. It does not build your credit, even if you always choose “credit” instead of “debit.”

To make it even easier for you, here are the top 5 credit cards used to rebuild bad credit.

Capital One® Secured MasterCard®

• Apply online or call 1-866-927-5828
• Get the credit you need with no processing fees or application fees
• Automatic reporting to the 3 major credit bureaus
• Track credit with access to your credit score and other tools
• Your refundable security deposit can get you a line up to $3000
• You may qualify for credit line increases with no further security deposit required
• Use it like any MasterCard credit card, accepted at millions of locations worldwide
• Regular APR 22.9% (Variable)
• Annual Fee $29

Applied Bank® Secured Visa® Gold Credit Card

• Choose Your Credit Limit - Simply open an FDIC Insured Deposit Account in your name at Applied Bank
• Your deposit will secure your new Visa Credit Card with a credit limit equal to the amount of your deposit - from $200 up to a maximum of $5,000
• Guaranteed Approval Regardless of Your Past Credit History
• 9.99% Low Fixed APR - Your Rate Won't Change Even if You Are Late
• Highest Ratings for Financial Strength and Security in the Country
• Regular APR 9.99% (Fixed)
• Annual Fee $50

First PREMIER® Bank Secured Credit Card

• You establish your credit limit - From $200 minimum up to $5000
• Reports monthly to the major Consumer Reporting Agencies
• This credit card may be able to help rebuild your credit history if you make on-time minimum payments and maintain your balances under the credit limits with all your creditors.
• Regular APR 19.9%
• Annual Fee $50

Orchard Bank Visa Cards

• Reports to 3 major credit bureaus monthly providing you the opportunity to rebuild your credit
• Acceptance at millions of locations worldwide, including website purchases and reservations
• Your account information is updated and at your fingertips 24/7 so you can manage it your way
• Email and text messages to remind you of your upcoming payment due date with online enrollment
• Knowledgeable customer service representatives to assist you with questions or concerns
• Regular APR 7.99%-19.99%
• Annual Fee $0-$59

Platinum Zero® Secured Visa® Credit Card from Applied Bank®

• Choose Your Credit Limit - Simply open an FDIC Insured Deposit Account in your name at Applied Bank
• Your deposit will secure your new Visa Credit Card with a credit limit equal to the amount of your deposit - from $500 up to a maximum of $5,000
• Zero - 0% Fixed APR on Purchases - No Intro Rates
• Zero - 0% Rate Won't Change - Even If You're Late
• Zero Application Fees
• Zero Worries - Free Personal ID Theft Protection
• Regular APR 0% on purchases, 9.99% on cash advances (fixed)
• Annual Fee $0
• Monthly Maintenance Fee $9.95

A good credit score means you are responsible, trustworthy and respectable. A bad credit score means just the opposite. Employers, creditors and landlords, they all take this number into account when making decisions about you. How do you want people to see you? In the age of electronic credibility, your credit score is more important than ever. Life is hard enough in this economy. Don’t let a low score make things any more difficult than they already are.