Credit Cards Can Help Rebuild Your Credit

Man's hand holding blue credit cardOne very common reason associated with obtaining a credit card is the desire to repair a damaged credit rating. The most important consideration in this endeavor is to understand that this will take a significant amount of time. No matter what anyone tells you, there’s no instantaneous, magic recipe that can be used to improve one’s credit score. It’s as simple as that. However, there are a few steps that you can take, which will set you on the right track. One of them is choosing a credit card that is designed to assist you in this particular goal.

Rebuilding your credit history

Anyone associated with a reputable financial institution will tell you the correct way to approach improving your credit score is to systematically manage your credit habits. Once you are committed to making this effort, then you will need an instrument that will indicate your level of commitment. This is where your new credit card can come into play. Here are some of the most valuable steps to be taken when it comes to setting up your credit score repair efforts.

First of all, you’ll want to be sure of exactly where you stand when it comes to your credit rating. The best way to do this is by checking your credit report. Fortunately, this can be accomplished for free. U.S. law specifies that you are entitled to obtain a free copy of your credit report every 12 months, which can be sent by mail to your U.S. home address. Once you have obtained your credit report, the next step is to go over it thoroughly, and check for any errors. Errors on one’s credit report are more common than you may think – so look carefully. The main things that you’ll want to look for are incorrectly listed late payments, inaccurate amounts owed for an open account and any accounts or charges that shouldn’t be associated with you at all. If you discover any discrepancies, you need to immediately report these and initiate a dispute with the credit bureau.

Choosing a Credit Card to Help Rebuild Your Credit Rating

Here are a couple of things to look for when choosing a credit card with the goal of credit rating rebuilding in mind. First of all, if you’ve had problems with your credit in the past, you’ll find it a lot easier to obtain a credit card if the card company you’re applying to specifically mentions that it caters to individuals who are looking to rebuild their credit rating. These types of credit card issuers will have features that indicate they are willing to help you towards this goal. For example, they may specify that they make regular reports to all three of the main credit bureaus (Equifax, Experian and TransUnion). They may also offer a resource that will allow you to track your credit with a greater frequency than the federally-mandated once per year.

Secondly, you’ll want a credit card issuer that others have specifically used for the purposes of rebuilding their credit and, as such, have reported success in their efforts. There are a several highly rated credit cards of this nature and it’s relatively easy to locate them. Credit One Bank offers an unsecured credit card for individuals with imperfect credit, but if you have trouble getting approved for an unsecured credit card you can always obtain a secured credit card which will also help you rebuild your credit.

Posted on September 20, 2017 by in Credit Cards

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