There is no need to explain to any U.S. citizen what credit history is and how important it is to have good credit score. However, it is easier said than done. Unfortunately, bad credit is a common thing now and it is something that complicates life of many people to a very great extent. It limits access to many things and, in the very first place, closes the doors of most banks; which means no credit options either whatsoever, or, at least, for a very long time. If your credit is lower than 720 points, there is hardly any chance. Thus, it makes sense to thy and improve the situation. It is not an easy task and it requires effort and certain amount of discipline; however, the end result is definitely worth it.
New Credit Card as a New Start
Bad credit usually means that you are restricted in all your credit options, but it also means that people usually give up all the credit cards and think that they may only complicate the matter.
However, this is not entirely so. Taking a new credit card and using it properly is the first step on the way to building good credit score – by making timely repayments and showing good conduct you create a base for establishing good credit.
There is a small chance that you will be able to get a credit card from a major bank; however, there are options. Just make sure that you do not apply for doubtful options that prey on customers with similar problems. There are offers, plenty of them, make sure you check them all.
Do not opt for prepaid cards – they are not the best way to improve your credit. These are strictly not credit cards and your activity with regards to them is not reported to any credit bureaus – thus, there will be no effect on your credit history, good or bad. These cards may be helpful as they are; however, for the purpose of credit score repair they are useless.
In case you are refused with a credit card, make sure to wait for the official letter that will clarify the reason for refusal. Perhaps, it is your income that seems insufficient to a bank. It is not always your credit history. Anyway, understanding the reason will give you a chance to get more prepared with your next application.
Get New Credit Habits
You have to keep in mind that in order to improve your credit you might need to change some of your living habits as well as some of your expense choices. It might not be easy if you are used to eating out, for instance, most of your time, or are prone to emotional buying or else.
You will have to find a considerably new ways of doing the same things, learn to budget as well as take each and every one of your purchases seriously. The same refers to the way you use your credit card, as we have already covered it earlier.
You have to understand one thing for sure that if you want to repair your credit, you will have to say good-bye to all the things that exceed your income. In order to achieve your goal, you will have to stick to this plan for some time, keep your wishes under control and make sure each credit card payment is on time and in full.
One thing to remember is that whatever you did with your previous credits, it obviously wasn’t good; which means that you have to do something quite opposite in order to improve your credit.
Timely Is Good
The key to successful credit improvement strategy is timely repayments – it is essential that once you’ve decided to raise your credit score. If you go on delaying any repayments and taking obligations that you fail to fulfill again and again, your credit situation will stay the same, it will always be the same. It is always easy to continue the way you used to live; however, if you are determined to improve it, you will need to make a serious effort. Keep in mind that many businesses employ debt collectors to deal with their faulty customers and that the note of debt collection interference stays into your credit record for 7 years – almost as long as bankruptcy. This is definitely not something you need, for sure.
Good Credit Is on the Way
Yet again, the best way to show that you’ve changed course is to show the creditors that you are determined in your decision, prove it with timely repayments and gradually building a better score. It will take time and some readjustment of your habits and expenses to a certain extent; however, there is nothing impossible. In the end it will be worth it not only because you will gain creditors’ trust but also will learn to live and spend more thoughtfully; which is always a plus. At some point you might manage without credit cards as well as without cash advance loans and any optional cash assistance.