Everyone makes mistakes when it comes to finances, but in some cases, your errors might result in poor credit. Sudden expenses like car repairs, health emergencies or a death in the family can cause financial hardship and lead you to fall behind in your bills. This is understandable, and you shouldn't be penalized forever. But you can hasten the recovery process by rebuilding your credit with credit cards specifically intended for those with less-than-great credit.
Step 1
Go to a credit card comparison website like creditcards.com and search for a credit card intended for those with poor credit. These cards are often characterized by a high interest rate, annual fees and high overage fees. This might seem off-putting at first, but card issuers are wary of those with low credit scores and seek to protect themselves through large penalties for high-risk cardholders.
Step 2
Compare interest rates on cards you find you qualify for. Even though you'll likely be stuck with a card with a high interest rate, it would be in your best interest to find a card that has the lowest interest rate out of all those intended for those with bad credit.
Step 3
Apply for a secured credit card if you are denied elsewhere. If you are turned down for credit cards made for those with poor credit, you may need to sign up for a secured credit card. You deposit money into an account and then you're only allowed to spend as much as you have put in this account. These cards are reported to the major credit bureaus, which helps to improve your credit, yet the card issuer doesn't have to take a huge risk on you.
Step 4
Have someone co-sign on a credit card with you. The person you ask should have good credit. The card will be under your name, but if you fail to make your payments, the co-signer will be responsible for the debt, so maintaining your account is a must.
Tips and Warnings
- Pay off your entire balance each month when you receive your statement. This shows you are taking serious strides to become a more responsible borrower and will help to improve your credit rating over time.
Member Comments