Credit Cards may have been the reason your credit got the way it is. So you decided not to ever have one again. I know credit cards are evil, but they are a necessary evil to establish credit. Let's assume you have messed up your credit report with credit cards in the past. So now you must re-establish your credit. What is the quickest way to establish new credit? Most people don know this but secure credit helps your rating.
You need 1 to 2 cards reporting to your credit report. Ok, but back to the re-establishing credit after some issues. You need to go get a Secure Credit Card, this is the quickest way to get your score on the rise. Yes, you need to deposit money with the bank, but it's your money, and you quickly start the process of reporting good credit to all 3 bureaus. Here are some great secure cards I highly recommend that does not have a bunch of outrageous fees.
1. Orchard Bank
2. First Premier Bank
These two usually start reporting to the Bureaus to establish good credit with in 60 days. These cards will quickly allow you to get your score in the right direction. You want to keep your balanced that is charged on your card 30% or less of allowed credit limit. While you are doing all of this, you can keep in the back of your mind, that every six months these companies usually will allow you to ask for credit limit increases as long as you are in good standing. Remember once your balanced owed drop below 30% of your allowed limit, your scores will increase.
Who cares if you have had problems in the past, I am sure by now you have learned not to make the same mistake twice. Credit Cards are necessary to get the better rate on that loan; it is another way to show your ability to pay back a creditor. This is what credit reports are all about, who is reporting you, and your ability to pay back obligations. In a nutshell, credit is necessary so if you don't have one I would get the process going.