Getting credit when you have none can be extremely difficult, especially if you’ve had a serious financial setback that has resulted in a damaged credit score… How are you supposed to rebuild your credit score if no one will give you credit? It seems like a vicious circle, but there are alternatives to conventional credit cards, and these alternatives are a great way to start getting your credit back on track!
Obviously, there are a couple of things that you absolutely have to do when you want to start improving your credit. First, you’ll want to take a really good look at your credit report and do your best to correct any mistakes that you find. These days, it’s as easy as filing a dispute online, answering a few questions, maybe emailing paperwork – and it doesn’t take nearly as long as it once did to correct these inaccuracies. I’ve seen them corrected in as little as 30 days!
Another thing that’s vital to improving your credit score is to pay off as many of the derogatory marks on your credit report as you can. Once you’ve paid them off, you can even request that they be completely removed from your credit report – this may or may not happen, but you should always try!
And finally, once you’ve done all that you can to correct the past, it’s time to start working on your future credit score by rebuilding your available credit and your payment history. Now, as I mentioned at the beginning of this article, it can be difficult to get a conventional credit card right off, but there are a couple of really good alternatives to conventional credit cards, and these alternatives have been instrumental in helping millions of people improve their poor credit scores:
Apply for a secured credit card, like the Applied Bank® Secured Visa® Gold Preferred® Credit Card. Secured credit cards work a lot like conventional credit cards in that you will have available credit, you’ll be able to use it anywhere that you’d use a conventional credit card (online, hotels, car rental, airline tickets, etc.), and you’ll make payments on the purchases that you make, but the big difference is that you’ll have to put up a security deposit when you open the account. This security deposit is typically anywhere from $200.00 to $2,000.00 (you decide how much) and will equal your initial available credit.
Most secured credit cards have highly competitive interest rates, low to no annual fees, and many convert to conventional credit cards after a period of time. All you have to do is choose the card that’s right for you! Just make sure that the secured credit card provider you choose reports your responsible use to the major credit bureaus, because that’s how a secured credit card helps you to improve your credit score!
Open a catalog shopping account such as a Fingerhut Credit Account issued by WebBank. Although it may surprise you, Fingerhut is actually one of the best catalog shopping companies out there. Not only have they been in business for decades, but they are known for working with those of us with less than perfect credit. In fact, most people get approved for a Fingerhut account in minutes, but in the event that you don’t? You may still qualify for a special fresh start program where you’d have to pay a nominal deposit on your first order before it’s shipped.
Either way, once you’re approved, you’ll love the selection of name brand merchandise, the competitive prices, and the low monthly payments! And even better, you’ll love the effect that a Fingerhut Credit Account issued by WebBank can have on your credit score over time. (Fingerhut reports to the major credit bureaus too!)