5 Ways to Rebuild Bad Credit Using Credit Cards


BANGALORE: Using credit cards more often can get you into bad credit mess, but under certain circumstances, they can also get you out of the mess. Below listed are some of the ways to repair your bad credit by using credit cards as compiled by msn.

1. Use Secured credit cards: Using secured credit cards are one of the best options for rebuilding credit because they typically don’t require a credit check. Secured cards are a type of credit cards that is backed by a savings account used as collateral on the credit available with the card. Secured cards are majorly used by the people who either have a little credit or a past history of bad credits. The best part of these cards is that they rebuild the credit history. There are several good secured credit cards available in the market, but look for a card that reports to the major credit bureaus, has low annual fees, and converts to an unsecured credit card after a period of timely payments.

2. Avoid applying for too many credit cards: It is a simple business for all the credit card companies, to allure their customer with exciting offers, packages and programs. This doesn’t mean you will buy and decorate your wallet with new credit cards more often. Every time you apply for a new credit card, you lose points on your credit score. If a new card comes out, it is advisable not to close your old account as a history. Also if you start applying for several credit cards within a short span of time, the lenders might start getting suspicious about the sudden credit card applications and might deny from lending you loans in future.

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