Rebuild Your Credit With Credit Cards

By Dan Moskel

Getting a credit card to help rebuild your credit history is a very wise decision. A credit card can help you create a positive payment history.

However you will only qualify for a sub prime credit card if you have a damaged credit score. This means your card will have an interest rate around 19%.

You should still make efforts to remove derogatory items off your credit report. However it is rumored that once a derogatory item ages four years it will not impact your score as dramatically.

If your credit score is low you will still be able to qualify for a sub prime credit card. This means you will pay approximately 19% APR and an annual fee.

On your card you will be given a credit line of $300. Your other choice is to get a secured credit card.

A secured card works like this; you deposit money into a bank account with the credit card issuer and they give you a credit card with the amount of your deposit as your credit limit. Your card will work just like an unsecured card; you will have monthly due dates and minimums to pay.

Both these types of cards offer instant approval. Before you apply for any card double check and make sure that they report to all three credit bureaus.

Another tip to help you get the most benefit to your credit is to keep your balance at roughly 10% of your credit limit. For example a credit limit of $300 you will want to keep the monthly balance at $30.

This will show the bureaus that you use your credit, and you use it responsibly. In addition having this new line of credit will improve your ratio of available credit to debt. This is a very important factor when your score is calculated. It is the bureaus method of checking to see if you are in over your head.

The last option for a card is a shopping card or a credit card that is only accepted at a specific location. We do not suggest these cards; they often come with large upfront payments and only report to one credit bureau.

You also can apply for a prepaid credit card however these cards typically do not report to a credit agency. However they do work like a bank account and if you are in chexsystems this is a good choice.

In sum we suggest a sub prime unsecured credit card to help rebuild your credit score. It will create a positive payment history and build positive credit.

About the Author:

We suggest the Tribute MasterCard an unsecured credit card to see a review visit us or here is an ezine article about prepaid credit cards and how they work.

Sharing tradelines can cost you more than money

By J. Ochs

Can you buy a higher credit score by purchasing seasoned trade-lines? This question seems to come up more and more these days. The answer to this is a bit complicated, so let me see if I can give a simple easy to understand answer.

The goal of purchasing seasoned tradelines for your own credit reports is to gain points in your credit scores. To purchase a seasoned tradeline, you must pay a monthly fee to get your name added as an authorized user to the account that is seasoned and in good standing. Once your name has been added to the account, it will report on your credit report.

Pros of purchasing seasoned reports - This is often successful to those with good, clean credit and are just needing a small step in their scores to qualify for the loan or financing that they are applying for. Tradelines are added and paid on just long enough to help with whatever financial situation you're working with, and then payments cease and will then fall off your credit reports.

Cons of paying for and adding seasoned trade-lines: There are several problems with using seasoned trade-lines that have now raised the brows of the credit bureaus as well as federal officials. Although there is nothing illegal about adding another person to your account, the biggest problem is in how these seasoned trade-lines are being sold. As I mentioned above, they are only appropriate for someone with already good clean credit, yet there are hundreds of companies on the Internet selling trade-lines as a method of credit repair. Buying seasoned trade-line when you have derogatory trade-lines on your credit will do little to nothing to boost your credit. In fact, it is a ridiculous waste of your money. With the cost of these trade-lines ranging from several hundred to several thousand per month per trade-line, it is not an effective solution for 99% of those who seek them. The other issue is that there are now changes underway by the credit bureaus to not include authorized user accounts in the credit scoring model. This will completely negate the effectiveness of seasoned trade-lines altogether.

Bottom line? Purchasing seasoned tradelines isn't the best way to go. There are other means that are more effective and less costly to improve your credit scores. For tips, take a look at our 'credit repair articles' section. NCA Credit Repair is a premiere credit repair company, dedicated to helping people with bad credit. Give us a call today, receive a free evaluation and find out how we can help YOU!

About the Author:

With over a decade of experience, Jon Ochs is the founder and CEO of NCA Credit Repair, one of the most respected credit repair services organizations. The website contains tons of free credit resources and information.

Avoid Bankruptcy Today

By Renee Dunn

Aiming to avoid bankruptcy? There is a way for you to get out of debt and be financially free.

Sometimes debts spiral out of control for various reasons; loss of a job, sickness, bad money management, and overspending are just a few of the possible causes. Whatever the reason you can resolve your situation but you must act now.

The way to ward off bankruptcy will be unique for everyone depending on the size of their debts and other individual conditions such as job security, asset value and assorted other aspects. But before you even contact them you should be in frequent contact with the people to whom you owe money. The people you owe money to will be really keen to speak to you about your debts if you are getting behind in repayments, keeping in touch with them is very critical.

You might be confronting really challenging circumstances and if you are then you need to get in touch with a lawyer as soon as feasible or an experienced debt management company who can help you negotiate with your lenders.

With some professional assistance it will be easy to engineer payment plans that suit you with all your lenders and from there they are held by those arrangements. This should save you of those distressing telephone calls or knocks at the door from someone threatening you with legal action if you don't pay up.

Therefore to avoid bankruptcy there are a few matters you need to be certain you're taking care of; keep the lines of communication open with your creditors, speak to professional advisors and reach agreements that you can afford and that protect your current assets.

About the Author:

Go and How Do I Get Out Of Debt and learn more debt solutions like loan consolidation.