How To Fix My Credit

For one reason or another, you have managed to damage your credit and are looking for a quick and workable way to fix your bad credit.  You cannot even make an airline, hotel, or car reservation without a credit card, even if you plan on spending cash!  Let me tell you, there is a mountain of information out there on the “How To Fix My Credit” subject, I know!  But interestingly, the most obvious avenue to restoring your credit to a credit worthy status is often so overlooked and yet so simple.  What is this method you ask?  It’s simple:

Apply For A Secured Credit Card!

Why is getting a secured credit card often overlooked?  Because the people in the how to fix my credit industry want you to spend a lot of money with them first to find out information you can easily find yourself.  Do not let anyone fool you into thinking you need to hire a professional to repair your credit in every situation.  The truth is, with a little research there is nothing a credit repair company can do to improve your credit score that you cannot do for yourself.

So, what is a secured credit card?  A secured credit card is a special type of credit card that requires you to give a cash deposit to the card issuing bank.  For example, if you deposit $100 in your secured credit card account, you will be able to charge anywhere from $50 to the full $100 on the credit card.  Your cash deposit is the banks collateral.

A secured credit card should be a top priority when trying to fix bad credit.  Why wait months or years to fix bad credit and then apply for a regular credit card when you can have a secured credit card immediately - as well as getting to work on repairing your credit now!  Being responsible month after month with your new secured credit card begins to fix credit damage immediately.

Here are some important tips to help you shop for and use a secured credit card properly.

1. Shop around.  DO NOT apply for multiple credit cards at once!  The more credit applications you fill out, the lower your credit score gets.  Apply for more than one secured credit card one at a time and only if needed. Find a credit card with a low fixed annual percentage rate (APR).  Do not be tempted with lower introductory rates that will shoot up to outrageously higher rates and higher fees later.  Read the disclosures on the secured credit card application.  If you cannot afford the required deposit amount, move on.
2. Do not rely on a secured credit card for your day to day living.  This is a tool to fix bad credit.  Only charge what you can afford to pay back in its entirety each month, DO NOT carry a balance on this credit card.
3. Only charge up to 1/2 the available balance.  Your credit score will not improve if the card is always maxed out.
4. Pay the secured credit card bill in full each month well before the due date.
5. Make sure the secured credit card company reports to ALL THREE credit reporting agencies otherwise the card is useless to you.  You need your hard work to be known at the three credit card reporting agencies (Equifax, TransUnion, and Experian).
6. Stay away from secured credit card companies that want you to buy an insurance policy for a monthly fee to guarantee the credit card.  Your deposit is their guarantee and the Federal Trade Commission is cracking down on this practice.
7. If you have been a good customer and have made your payments on time, you should be able to convert your secured credit card into a regular credit card after about one year.  You must request this and request your deposit back.
8. Your deposit should earn you a little interest, usually no more than any checking account would pay.

So how can you get started on the path to being credit worthy again in the how to fix my credit with a secured credit card plan?  Simple, don’t wait, begin your search for a secured credit card immediately!