Bad_Credit___Can_t_Get_a_Credit_Card___Yes_You_Can_ by mikew56


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Bad Credit?   Can't Get a Credit Card?   Yes You Can!

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Damaged credit, or no credit is not the end of the world. Many people
believe that they just have to wait it out. There are some actions you
can take to get you back to a good credit standing.

credit card, bad credit, damaged credit, credit repair, secured credit

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Most people don't give much thought to the importance of credit until
they need it. When they go to apply for a credit card they discover that
their bad credit keeps them from getting a card, or a card at a decent
rate. Most people want to pay their bills, and remain in good credit
standing. Nobody wants to be seen as a deadbeat to the credit card
companies, but because of a couple of tight financial situations in the
past they cannot get approval for a credit card. There is a way around
this problem.

There are a few companies out there that understand your situation, and
want to help you to obtain a better credit rating. These companies offer
secured credit cards. A secured credit card is a card that you make a
deposit to which determines your credit limit. You can use your card
just like any credit card, but your purchases are limited to your
deposited amount, (similar to a debit card). Before applying for a
secured credit card you must make sure that the card reports to the major
credit reporting agencies. If they do not report then that card is
nothing better than a glorified debit card.   In extremely simplified
terms when a secured card sends reports to the major credit reporting
agencies they are showing that you are paying off your debits, and you
are less of a credit risk.

Here's a brief example of how these cards really work. On the surface it
works just like a debit card. Let's say you made a $200 deposit to your
secured credit card. You then go to the store and make a $20 purchase.
Your account balance is almost immediately reduced by $20 to $180. The
key to these cards is when the credit card company goes to report your
information to the major credit reporting agencies, (the better secured
card companies will report monthly). In simplified terms, the credit
card company will tell the reporting agency that you made a $20 purchase
on your credit card, and it was paid. As far as the reporting agency is
concerned you are making good on your charges. This is a sign of a good
borrower. Even if you have had problems with credit in the past the
reporting agency is seeing that you are now less of a default risk thus
bumping up your credit score. After time you become more appealing to
other credit card companies and you will more readily be accepted for
traditional credit

Improving your credit is not a quick and easy task. There are many other
things that factor into your credit score, but this is one action that
you can take on your own. A secured credit card may not fix severely
damaged credit, but for many people it's a step in the right direction.
It will not make your credit score sky rocket into the upper 700's
either. It will take some time, but it's better than sitting back,
passively hoping that things will get better.

*Before applying for any credit card be sure to read, and understand the
'terms and conditions' of the card.

Please visit <a
for a selection of secured credit cards.

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