Helping Your Credit Score

Bad credit, low credit, or no credit score? It's very difficult to go without a credit card these days. Try booking an airplane flight or renting a car without one. Not to mention one day buying a car or getting a mortgage on a house. These days it's a given - we rely on credit to get by on an everyday basis. You'll need a credit card if you want to make improve your credit score. Good luck fixing anything with cash. So, what do you do? There are a few different ways you can secure a credit card even if your credit score is in the low range.

Retail Credit Cards
Sometimes retailers are far more willing to give you a chance than your bank or most other credit card issuers. Simply apply for a store branded card and if you are accepted, make a few purchases here and be sure to pay at least the minimum payment each month. In fact, if you pay more than the minimum payment, the interest rate will not be nearly as high. Remember that credit cards are nothing to play with. So don't get hung up on the selling points of the card - free money towards more purchases, etc. - that is not the goal here. The goal here is to rebuild your credit score.

Your Bank or Credit Union
Banks are in the credit business, if a local bank or credit union already enjoys your business, then they may be willing to give you a chance. Stop by your branch and see what options they can present you with. Again, they may not be ideal, but your goal here is to use these options to build your score up.

A Secured Credit Card
A secured credit card is always an option, with a secured card, you are required to open a bank account with a deposit that serves as collateral against your line of credit, this isn't always the most favorable option because here your options are limited by the amount of cash you have at hand for deposits into your savings account and your line of credit will be less than this. However, it's the best way that one can get established, remember you have to start somewhere.

Cosigning
Good credit is key when asking a relative to cosign with you. Remember that your credit is factored into the application as well, so it's important that your friend or relative has enough clout to override your credit score. Don't forget that this is your friend or family member - if you can't pay back the line of credit, then the balance will fall to the cosigner and will, in turn, blemish their credit rating as well as yours.
 When your lack of credit gets in the way of living your life the way you need to, your only option is to rebuild it. What's important here is that you still have options. Look at these opportunities as a means to an end and you'll come out just fine.