Bad Credit Agency

Does having a credit card help you re-build bad credit?

Like if you don't have good credit for instance from mis-paid bills and such, and you are offered a credit card from credit company that accepts you even with bad credit. Does it help you re-build it?

Public Comments

1. Yes... and no. Accepting too many at once will hurt. Charging more than 1/2 of your available credit will hurt. Not paying it off or close to off every month will hurt. To help: get the credit card. charge no more than 50% of the available credit on it every month. pay it off every other month. On the months you dont pay it off, ALMOST pay it off, but leave a balance. Do this for several months and your credit score should increase.
2. Yes, make regular payments and you'll build great credit
3. It will only help if you make your payments on time. So if you plan to do that then it will help. Also, if you want to learn how to repair your credit then visit http://www.thecreditrepairmanual.com
4. Credit Cards help build your credit back up. You just have to be careful with them. Use them sparingly and then pay off the entire balance every month and that should really help your credit score.
5. There are many factors that will go into rebuilding your credit. One of these that is looked at is your spendable limit (or how much credit you have available compared to how much you make). If you have a spendable limit that looks really risky that will hurt your credit. Also, if you get the credit card and continue down the same path that put you on this road in the first place this will hurt your credit score. Now if your spendable limit does not look risky than that will help your credit score. If you get the credit card and pay it off every month that will help your credit score. The best way to help your credit score is to simply be consistent with all of your current bills and always get them on time. My wife and I paid off all our debt last year totaling $10,000 following the Dave ramsey book, "The Total Money Makeover"
6. Mostly, yes. Too often peopel get bad credit-- lots of collections, charge-off's, etc, and they think that they just need to wait and their score will go up. They forget that they are not building new, good history to outweigh the bad. You need to be current or paid up on any delinquencies, collections, etc. Then you want to have some new accounts open. Start with 1 card and keep it below 25% of the limit. Pay on time for 6 months and then get a second small card and do the same. Dont go overboard. Eventually the bad stuff will age out and the new stuff will take over. It just takes time.
7. You have a chance to improve your credit rating and therefore brighten up your financial future by being patient, a conscious effort, and a personal debt repayment to improve your credit report. The most practical and effective way to truly improve credit is through a number of practical steps designed to help you not only improve your credit rating but also to maintain a decent credit rating once it has improved. No matter how bad your credit is, taking following steps will make it better. STEP 1: Dispute Inaccurate Information or Frauds in Your Credit Report STEP 2: Pay all of your bills on time STEP 3: Reduce the number of credit cards you carry STEP 4: Avoid bankruptcies, tax liens and collections STEP 5: Request for Lower Credit Limits STEP 6: Get a Small Loan or Credit Card with Co-Signer STEP 7: Get a Secured Credit Card STEP 8: Periodically Get a Copy of Your Credit Report Find complete explanation for each step at: http://www.howtoestablishgoodcredit.com/Credit_Articles/index.php
8. Yes....pay the cc bills on time Bad credit can frustrate your efforts at getting a credit. Hence ensure you keep your credit report clean. If there are any errors in the report, undertake credit repair to clear out any errors. This can be tiring and frustrating, but highly rewarding.