Getting credit with bad credit is a conundrum at best. It always seems those that don’t need credit can easily get it and vice versus. However, the landscape is changing and there is not only hope but actually special banks and credit card companies that want to help you repair your credit. Getting credit when you have bad credit takes a bit of forethought and understanding of what to do to rebuild your credit.
Here is a little inside knowledge that should help you rebuild your credit. If you don’t have any credit and have actually tried to get it, you will likely have to start with a secured credit card. It’s not really a bad deal anymore. You deposit a certain amount of money with the bank or credit card company and basically borrow against your own money each time you use that card. The neat thing is that they report this to the credit bureaus. Interestingly enough, some of these banks will actually extend you credit above the amount of your deposit. As an example Open Sky Secured Visa will give you a $3,000 credit line with a $200 deposit.
In addition, it’s good to know that establishing new credit can account for up to 10% of your FICO score. Next it’s time to use this credit (wisely of course) each month and pay it on time. This should go without saying, but it’s important to note that on time payments account for 35% of your FICO score. And finally you need to use this new credit card every month religiously because another 15% of your FICO score is based on length of your credit history. You build it one month at a time. Right there, is 60% of your credit score!
What if you have a ton of bad credit on your report? It will definitely slow down the credit rebuilding process. Should you go for credit repair? My answer is yes definitely. Don’t let anyone tell you that bad credit can’t be removed from your credit report. Safe Haven Credit is proof it is happening every day. Without going in to all of the legal technicalities, let’s just say that the consumer laws in place force a very high level of due diligence upon the credit bureaus and that they fail miserably at it. The same can be said of creditors as well. So, removing negative credit should be one of your strategies in your credit repair plan.
To get a credit card now even with bad credit should be one of your priorities. Removing bad credit should also be a priority. These two credit repair strategies should help you quickly improve your credit scores and qualify for just about anything (including a mortgage).
If you want more information on which cards are best, download our “6 Best Credit Cards for Bad Credit”. It’s yours for free. ENTER FORM BELOW