Looking for a Credit Card for Bad Credit?
Not for long!
Let's discuss the steps on how to rebuild bad credit
Building credit is not going to be free, nor can it be done overnight.
If you’re looking for an overnight credit fix, this is not the site for you.
It can be accomplished in as little as 30 days, and for others it could take 90 or even 180 days.
When used responsibly, credit provides serious leverage.
The goal is for you to be able to show lenders you’re worthy of that leverage and will repay your accounts so you get approved for credit instead of the usual denial letters.
Here’s how to do that.
- Pay your bills on time – Yes, life happens. But let’s be real … If you are not willing to take your finances serious and pay your bills on time, then you will only be doing yourself more harm than good. One late payment can drop your credit score like a lead balloon – by more than 100 points. Paying your bills on time is the first and most important step to getting your credit score on the up & up.
- Understand how credit works – In case you missed it, there was this amazing blog post found on this wonderful website … *cough cough* that explained how credit scores are calculated and how to understand them. Check it out here.
- Sign up for credit monitoring – And no, we don’t mean Credit Karma. Free is great and everything, but you get what you pay for. Get yourself a credit monitoring service that provides all 3 major credit bureaus with reports and scores and preferably one that provides additional protection if possible. We even did the hard work for you and compared credit monitoring companies, so all you have to do is pick your favorite. Check it out here.
- Get a secured credit card and keep utilization between 2%-10% of your credit limit – Yes, we said it. SECURED. Because you have to EARN the lender’s trust back. And since credit utilization accounts for ONE THIRD of your credit score … it’s highly important you have one. When a creditor looks at your credit score, they want to see the likelihood of you defaulting on that account within the next 24 months. And since you are still in the process of gaining their trust, you have to show you have something to lose this time, hence the security deposit. Thankfully, we work with a company that provides secured credit cards with guaranteed approval, as long as you don’t have an active bankruptcy. That’s right. A credit card for bad credit. You can get yours now here.
- Open an installment loan – Because one positive account is good, but lenders want to see that you can juggle multiple accounts responsibly. We highly recommend Self (previously Self-Lender), because you get virtually all of your money back at the end of your loan term, unlike traditional installment loans. That’s right. You make your monthly payments, and at the end of your loan term they take a small fee for reporting to the credit bureaus and you get your money back. They also offer a credit card once you have made on time payments on your loan. Get started with Self here.
- Report rent payments – It’s like magic. Rent reporters will verify your rent payments with your landlord and report up to 2 years rental history to the credit bureaus. Learn more about Rent Reporters here.
Following these steps and sticking with them WILL increase your credit score.
When you have good credit, don’t mess it up. Pure and simple.
Once you are at the point where your credit score is GOOD-EXCELLENT, you can enjoy some of the benefits of responsible credit usage, like my personal favorite … traveling for free!
“But how?!” Here’s the scoop. You pay your bills each month on time, right?
“Well duh …”
So apply for a southwest credit card, they can be used anywhere.
Once it comes in, set your monthly bills up on auto draft to be paid through your southwest credit card, which will earn you free airline miles.
“But I thought you said not to use more than 10% of my credit limit …”
Ahh, correct grasshopper. You pay your full balance on your southwest card each month before the billing cycle close date, which is different than the due date.
There are many cards that offer rewards like this.
Free hotels, car rentals, airline miles, rewards at other stores, etc. I use southwest as an example, but here is a link to get started if you’re interested!
Need more help? Give us a call at 833-75-CREDIT or schedule your free consultation today.