If you have terrible credit following a bankruptcy or other major financial upheaval, you may need to get back into a good credit rating by taking out a loan you can handle.  Make an appointment to see your bank or bad credit lender a few months or years after the problem in question and arrange for a small loan.

You should have enough savings to pay for the loan before you do this.  Pay back the loan quickly.  It will not hugely boost your credit score but it will show lenders that you are having an easier time paying your bills.  Taking out a small loan you can repay is part of the slow process of reestablishing good credit following a big financial problem.

Try secured credit if you cannot qualify for other types of credit

Secured credit is credit or a loan which uses something as collateral.  In some cases, this could be an asset like a house.  In some cases, this collateral could be money frozen in an account by the bank for just such a purchase.

If you need credit following a big problem with your credit score, secured credit may be something you can qualify for. You can use this secured credit to reestablish a good credit rating so that you will qualify for other loans in the future.  You may have to pay slightly higher interest if your credit score is quite low, but in the long term repaying this type of loan can improve your credit score.

Here are some good secured credit cards we recommend

Does a secured credit card help your credit scores? This is a very common question that people who are trying to repair their credit rating often ask. While the answer is yes a secured credit card does help your credit scores there is more information that you need to know in order to get the most from your credit repair efforts and your secured credit cards.

Tips For Credit Score Improvement Using Secured Credit Cards

First you need to make sure that you do not abuse your new secured credit card. There are only two ways that you can make sure you do not abuse your charge card, do not pay the account late and do not max the account out.

While these may seem like obvious tips they are often ignored. Many people with bad credit often end up repeating the same mistakes they made before a short time after they get their new secured card. To avoid late payments it is recommended that you enroll in any auto pay program that your card issuer offers its borrowers. Being enrolled in auto pay will guarantee that your payment is never late and your scores continue to rise.

As far as not maxing your secured credit account out this is also very important if you want your credit scores to improve, in fact if your balance goes over 40% of your accounts limit your scores can actually start to quickly drop. This is an area where you will have to use self control and keep careful track of your spending or your new credit card could end up hurting your credit scores rather then helping them. If you can manage it the best thing to do is to pay off the balance in full every month and avoid carrying a balance all together.

Three Great Secured Credit Cards That Will Help You Boost Your Credit

The Rush Card
Founded in 2003 by entrepreneur and philanthropist Russell Simmons, UniRush, LLC, revolutionized the payments industry when it launched one of the first prepaid Visa debit cards. Rush Card empowers cardholders to take control of their financial futures. It’s an easy-to-use alternative to credit cards without the worry of credit card debt.

Get a Prepaid Visa RUSHCARD Now

Using Secured Credit Cards

Life in todays world with out a credit card can be challenging. Without a simple piece of plastic you cannot rent a car, hotel room or safely shop online. For most people getting a charge card is very easy, but for borrowers with low FICO scores or a troubled financial past getting a card can be difficult. For these borrowers the only option is a secured credit card.

What Is a Secured Credit Card

A secured credit card is backed by the consumers own money that is held in an account, the normal amount for a new card is $300-$500 dollars. What this does is gives the lender a source of funds that will cover any charges on the card that the consumer does not pay. Because the card is backed up by funds the approval is almost guaranteed.

How Will A Secured Credit Card Help Me Boost My Score

These types of cards report to the agencies just the same as a standard account does. The best part is your credit report does not list the account on your report as a any differently, so no one will know the difference. It will basically give you the same FICO score boosting power as a normal card.

How Much Will a Secured Credit Card Boost My Credit Score

How much the secured card will boost your credit score varies from person to person. The main concern you should have is paying it on time, never pay late and not carrying a balance on the card of more then 45% of the limit. Maxing out your account will actually reduce your score as it makes you look like a risky borrower.

Three  Great Secured Credit Cards That Will Help You Boost Your Credit

The Rush Card
Founded in 2003 by entrepreneur and philanthropist Russell Simmons, UniRush, LLC, revolutionized the payments industry when it launched one of the first prepaid Visa debit cards. Rush Card empowers cardholders to take control of their financial futures. It’s an easy-to-use alternative to credit cards without the worry of credit card debt.

Get a Prepaid Visa RUSHCARD Now