Getting a new credit card might be the last thing on your mind when you are trying to redeem yourself from debt and bad credit, but if used wisely, it could be one of the best tools available to prove you can handle credit responsibly.
Here are a few tips on how you can use your credit card to rebuild your bad credit:
Applying for a new card:
- Only apply for credit cards you know you will be approved for. Every time you submit a credit application, a credit inquiry is placed on your account and can affect your credit score. To keep your score as high as possible, avoid multiple inquiries.
- If you don’t think you will qualify for a credit card from a major bank because your credit score is too low, you can look into other options such as a department store cards, gas credit cards or secured credit cards.
- Avoid prepaid credit cards – they have absolutely no effect on your credit score.
Managing Your New Credit Card:
- Never make a late payment. Paying your bill on time is the most influential factor in determining your credit score. Mark it in your calendar, set-up automatic payments or download a reminder app – whatever it takes to ensure on-time payment each month.
- Pay your credit card off fully, every single month. This means living within your means and avoiding extra charges to your card that you cannot afford to pay off each month. By doing this you will also save money by avoiding interest charges.
- Make more than the minimum payment. Lenders will look upon you more favorably if you pay more than the minimum amount each month. Additionally, your balance will decrease at a faster rate with a larger payment.
- Keep your credit-utilization as low as possible. It is recommended you only carry a balance of up to 30% of your credit card limit if possible.
- Stick to getting only one or two credit cards. The more cards you have, the harder it is to keep on top of them all and the more likely they are to get out of hand. You need to consistently demonstrate that you can handle your cards, so avoid getting more than you can manage.
Repairing bad credit using a new credit card takes time. By choosing and managing your new card(s) responsibly, you can slowly raise your credit score and break free from past financial burdens.
Contact Great American Credit Repair Company today at 1-800-603-1943 and let us show you how you gain the financial freedom you deserve.
About Great American Credit Repair Company
Great American Credit Repair Company is a highly recommended credit repair company and a FICO Pro Certificate holder, with credentials from the National Association of Credit Services Organizations. Great American Credit Repair Company offers the only Money Back, Triple Result Warranty in the industry because we are confident we can deliver the results you need.
How does Great American Credit Repair work to restore your credit? Approximately 79% of all credit reports contain errors and aren’t verifiable. At Great American Credit Repair Company, we know most people don’t earn the credit score they deserve and will investigate every negative aspect of your credit report every single month to make sure you get the highest credit score possible.
Great American Credit Repair Company…….because you deserve a fresh start!
Call us today at (800) 603-1943 or visit us at https://greatamericancreditrepair.com for you FREE consultation and to get more information on how you can regain your financial freedom.