Cards that Build Credit

When you rebuild your credit with a credit card there are a couple of ways that you can go about doing so. Before filling out a lot of applications there are some guidelines that you need to consider. Unfortunately, most people who set out to repair their credit using a credit card actually accomplish just the opposite.

Remember This One Rule: The ONLY reason you are getting a credit card is to repair your credit.

1. Do not use your credit card - That's right. Chances are it's credit cards that got you in trouble in the first place. Most people believe that you must charge items and pay them back to re-establish credit. This is not true at all. Credit reports only show creditors these 4 items.

• Length of credit history, (How long you've had the credit card).
• Credit Card Issuer
• Credit Card Balance
• Late payments

Nowhere on a credit report will you find a notation of how many times you have used and repaid your credit card.

2. Do not get a credit card if you have a tight budget - Again, credit cards are most likely the reason your reading this page. If you you get a credit card, and your budget is tight, you will use it. Getting a credit card when you need to use it is dangerous. Remember, your getting the credit card to repair your credit.

3. Manage your credit balance - Most people are going to ignore rule number one and use the credit card. You should know this: credit cards become a liability and lower your credit score once you exceed 35% of the credit limit. Some say 50%, nobody really knows for sure. What I do know is that your credit score can go down 10 - 50 points by having a maxed out credit card.

4. Set it and Forget it - When yo get your new credit card, shred it!. Be careful though, it most likely will have an ugly annual fee that you have to pay, so make sure you don't forget to pay this or you will get late payments. I suggest that you go to the credit card's website and set up an "Auto-Pay" account that pays that fee for you so you don't forget to pay it.

If you forget this card it will build time (length of time in the bureau) and give you an AWESOME credit rating the older it gets because it has a zero balance. 

A personal note, I did this for my son when he turned 18. I put $500 into a secured card and put it in his name. He never knew he had it. By the time he was out of college he had a 760 credit score (higher than mine) and walked into a dealership and bought his first brand new car. (Without me having to cosign:-)

5. Try to use a secured credit card - Most of the credit cards that will approve you with bad credit, right out of bankruptcy are butt-ugly credit cards. The irony to this statement is that we offer these type of cards here.

When you use a secured credit card you will get these benefits:

• Lower fees
• Lower rates
• Controllable balance (you can add money to increases your balance, which strengthens your credit)
• Your security deposit get interest, and if you dont use your card you never have to pay interest.

The best secured credit card we offer is below, here are all secured cards.

	Applied Bank® Secured Visa® Credit Card 9.99% Low Fixed APR - Rate Won’t Change Even If You’re Late! CHOOSE Your Credit Limit Up To $5,000* $0 Fraud Liability NO Credit Requirements NO Income Requirements*See Issuer
	Category Intro APR Applied to: Regular APR Annual Fee Secured No Introductory Rate Available None 9.99% $50

Here is the best UNsecured credit card: All unsecured cards