How You Can Repair Your Damaged Credit

Credit CardNo matter what you’re trying to accomplish in today’s financial market, having good credit is paramount in its completion. Having bad credit can prevent you from getting a loan, financing money towards purchases, invest in passive income streams, and prevent you from renting in certain areas. In conjunction with being a financial burden, bad credit can be an embarrassing topic to converse about with your friends, family, or banking institution. Many individuals who suffer from bad credit are too intimidated to ask for assistance in order to change their current financial situation.

The first step that one needs to make in order to repair their credit is applying for a secured credit card. These secured credit cards can be applied for within your current bank despite what your credit score is at the current moment. A secured credit card is acquired when the individual pays the deposit fee required by the bank in order to get the card in question. While this deposit fee may vary, the common consensus is between $100 and $1,000 for first-time appliers.

Once the credit card is setup through your bank, you will be able to use a credit limit up to the initial amount that you’ve deposited. In theory, a client of the bank will be able to make purchases up to said amount on a monthly basis. Not only is this a fun way to control your financial status, it also builds your credit as you make purchases moving forward. It should be noted that although this credit limit looks very appealing to the client, the full amount should be paid off entirely at the end of the month. Failing to follow this step will further impact your overall credit score in a negative way.

Financial Competence

Being financially competent with your purchases is often those most over-looked step in repairing your damaged credit score. Individuals should only use the credit card when they are absolutely certain that the charged amount can be paid off in full. When you make the purchase and charge it to your credit card, immediately pay the amount off in full within 48 hours of completing the transaction. Following this tactic will further allow you to make vital purchases routinely while also helping your overall credit number grow.

Furthermore, taking out multiple credit cards can weigh heavy on your credit score and cause it to fall over time. If you’re an individual that uses an excessive amounts of cards to make routine purchases, limit your spending between 1 and 3 cards. This paints you in a trustworthy light with credit unions and puts your financial future back in your hands.


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