What if you’ve applied to card companies in the past but have gotten rejected? There are still things you can do.
One option is to get a secured card. Get one at a bank around you, and preferably the one you do business with. You have the best chance of getting accepted there. Also, focus on cards that are designed only for those with poor credit.
But don’t apply for too many at once.
If you get too many credit inquiries, financial companies will assume you are taking on more debt and will be less likely to work with you. It can also negatively impact your score.
And be cautious.
Just because you get accepted for a card doesn’t mean you should use it. Some of them will do more harm than good.
For instance, many have hidden rates such as very expensive late fees. This is particularly true of the bad credit cards. If you aren’t able to make all your payments, you will soon find yourself up deeply in debt again.
What about prepaid cards?
Don’t use them. They have no impact on your credit score. This is because you are just paying them off upfront, so there is no chance of default.
But remember to pay your bills on time.
There’s no point in getting a new card if you are just going to continue making late payments.
What if you can’t make your payments on time?
Then just spend what you have and no more. And you might have more money than you think. Do you really need that new tool set? What about all those magazine subscriptions? Try to cut back and budget where you can so that you can prioritize reducing your debts.
How long does it take to rebuild your credit?
It depends on your situation. But you didn’t get a bad credit score overnight, and you aren’t going to wipe it out that fast either.
Just make sure your payments are on time every month, and eventually your small efforts will add up. By faithfully paying your bills on time you will see a big difference.
FURTHER READING:
Schedule an Appointment with Yourself for a Financial Checkup
