Maintaining a clean credit report is hard enough during normal times, but when the economy takes a downward turn, it is even more difficult. One of the first areas to be hit is credit cards. Once you experience some dings on your credit report, you may fear that you won’t ever again be able to acquire a credit card until a significant amount of time has passed. Thankfully, that’s not the case.
Unsecured Credit Cards
Unsecured cards do not require that a bank account be attached directly to them. Some of these cards may be available to you, even specifically geared towards those who have less than perfect credit – even a bankruptcy.
The problem is, unsecured cards come at a price if your credit score is not very good. Since the card is not secured, the risk is much greater for the issuing company. Therefore, they will typically charge a higher percentage rate and usually a processing fee. They might even have an annual or monthly membership fee for the opportunity to have access to the card.
Secured Credit Cards
For those who have a little money that they can set aside, a secured credit card may be better. These require a deposit to be made into a bank account that the card is linked to. The amount of the deposit is usually equal to, or close to the amount of the deposit. This is the issuer’s guarantee that the bill will be paid in the event of default. If payment is not made on time, the issuer simply removes the amount from the account.
Secured cards are a great way to have access to a credit card. Many of these issuing companies will also allow you to use the account as a way to help rebuild your credit. Some will report to the three major credit bureaus, although it is a good idea to inquire ahead of time before opening the account.
After establishing a favorable payment history, some of the issuing companies will often turn the secured card into a regular credit card. This will help you to re-establish yourself and, if you wish, the positive report can even be used to open another credit card account.
How long will it take to clean up my credit after 6 months
Hey Mike, I want to thank you for all your help. You made this so simple. I have been with you guys for about nine months. I have raised my credit score up to 775 so far. I am shooting for 820 and I started with a credit score of 486. WOW – I’m so impressed with your Credit Solution Program. I will keep reading your emails cause I know I will learn something new. I will let you know when it gets to 800. Your program is so easy to follow and understand. It’s as easy as 1 2 3. The low cost of the program had me skeptical BUT – It’s the best and smartest dollar I spent. Again, I Thank You & I’ll let you know when I hit the 800 mark. I’M SO HAPPY
Hey Will,
We look forward to hearing from you on that day. Best of luck, my friend 🙂
Does the statute of limitations law on reporting a negative item begin after a default or once the default occurred? I have a negative item on my report that shows opened in 2008 it’s 2016 it went to default in 2011 does the limitations statute apply here?