Most people with a damaged credit report end up that way after experiencing a financial difficulty. Having damaged credit makes it difficult to get new credit.
Do you realize there are things you can do for damaged credit repair and make this easier?
The use of a Secured Credit Card is one way.
A secured credit card works like a regular credit card in that it reports to the credit bureaus. Your credit report will not show a difference between a regular credit card and on that is a secured card
How does a Secured Card Work?
You set up an account with a deposit of funds to establish your credit line. This is typically 50 to 100% of your deposit amount. So if you deposit $1000 your credit line would be $500- $1000. You make payments each month paying back what is borrowed.
Why would a company do this?
Most companies that issue secured credit cards charge higher fees, such as processing fees, application fees, and annual fees. It is more profitable with less risk because you have deposited funds with them.
How does a secured credit card improve my credit?
Damaged credit is the effect of having a poor payment history. By using the secured credit card for small purchases such as gas, you are able to keep the balance owing low. You are then able to repay what is owed each month, showing a good payment history.
Make sure when you open account with a company ask them if they report to all 3 credit bureaus. This way you will know for sure that by paying on time you are reestablishing good credit, if they don’t find another company.
Once your application gets approved, keep in mind that the purpose of the card is to rebuild your damaged credit. You will then be able to apply for unsecured credit cards to further continue repairing your credit.
Remember to have patience, your damaged credit did not happen overnight and there are not quick fixes to repair it overnight. With a plan of action, starting today you can do damaged credit repair and be on the road to good credit sooner than you thought.