Credit Repair

What is a good credit card/process to help repair poor credit due to adolescent irresponsibility.?

I have spent the past two years trying to build credit after the destruction I performed during the first years of my adult life. I have cut my monthly expenses down to only rent, insurance and student loan payments. I would greatly appreciate some advice on what my next step should be. if a credit card isnt the solution, what is? Any help would be greatly appreciated.

Public Comments

1. i am in the same boat as you are. my suggestion would be to: consolidate any accounts that may be in collections. you can normally close these credit delinquencies by consolidation with the company for a lesser amount that what you originally owe. debt consolidation can be a helpful tool in any credit repair program.
2. Check your credit reports from Experian, Equifax and TransUnion-the Big 3 of credit reporting agencies. Go to annualcreditreport.com and get a report for free from each of these 3 agencies. You're only allowed one free report per year. Find any inaccuracies and correct them. If you have closed accounts but they show up as open on your credit report, it can sometimes have a negative effect on your credit score and ability to get loans. Fix anything that might be inaccurate, lower your balances (if any). If you don't have any credit cards, I'd suggest getting a department store, gas station or small bank credit card (ie limit very low). With a low limit you'll be less tempted to spend money you don't have. Also, for any one card, try to spend less than 50% of your limit, preferably less than 33%. Make payments on time, and after 6-8 months, either buy a credit report from all three agencies, or enroll in one of their 30day trials which are free for 30 days and provide all 3 bureau reports.
3. I went through the same thing. I just got a card through Orchard bank to help rebuild my credit. They give you a low limit and report to 3 credit bureaus every month. If that is the route you want to take then maybe try that. There is an activation and a yearly fee, but that is because it is secured and depending on your credit report might be the only card you can get at this time. Just use it for emergencies and then pay it right off and it will help build your credit. Eventually if you pay on time and keep up on it they will raise your limit and give you a lower APR.
4. I cannot recommend any credit card because if you have bad credit, any card willing to accept you would be better than nothing! What I can do is direct you to my website and read it all. I went through Identity theft and a bankruptcy shortly afterward. Bankruptcy discharged my debts but you get your credit wiped out in the process! It's hard starting over, but it can be done and good for you for wanting to start! I got my score up from 486 to 729 in a little over a year! I cannot guarantee that you will do the same in a little over a year, determination and ambition are factors. First get a copy of your credit reports ahnd look them over for errors. The rest I would tell you to consider is in my website because posting here would take up a lot of page space. Godd luck and don't give up! You can do it!!!!!
5. Of course, the temptation is there to take on new credit obligations. At this point, I disagree with others who state you should get a credit card. Why? Because you will continue paying for the mistakes of the past PERIOD in your new credit ventures. Also, I cannot agree with others who state to do a debt consolidation solution. When you do these, you open the wounds on your credit all over again... You really should go to annualcreditreport.com and pull and print out your credit reports from all three credit bureaus. After doing that, you must now form your plan of attack. First, ensure you have funds set aside to take care of obligations you have out there.. Now, you do not need enough money to take care of everything.... Now, comes the contacting of your creditors directly. You must acknowledge that you are willing to pay a specified percentage of the debt IF THE ITEM IS COMPLETELY REMOVED FROM THE CREDIT REPORT. Now, most places will do that if you pay the debt.. Notice how I said A PERCENTAGE. You do not need to start out with 100%. Start out with 50% and bargain your way upward as long as they completely remove the item from the credit report.. If you pay anything under the original amount of debt, it is called "a settlement." You must ensure you get a settlement letter in writing OR record the conversation where you get the person to identify themselves and the fact your debt is being settled out. This is the easiest way to improve your credit. For the most part, this will work. Do not deal with collection agencies, unless you are directed to do so.. Collection agencies are very hard-headed against removing negative items from credit reports.. Now, if you run into more complicated problems, then you should consider the next step... This would involve contacting the company's executives directly. You can research the company online and locate their main switchboard #. Call that number and have the name of the VP of Finance or CFO (Chief Financial Officer) available.. When the operator answers, state "Yes, can I have Mr. VP of Finance's office (substitute person's last name here), please?" Then, proceed to discuss the situation from there.. I guarantee you, most of the time your problem will get resolved and negative credit will disappear.. After this is done, then you can ATTEMPT to apply for one item of credit.. If you are denied, then pull your credit report again (you can for free if denied for credit, insurance, or employment).. Hope that helps.
6. To repair you credit you could do a couple of things take a small personal loan for about $300.00 dollars and make your payments on time for about 6-8 months, or you could get a credit card with a small limit and use it for your every day expenses but make sure you send in the full payment at the end of the month that way you do not pay interest and you are building credit at the same time, its hard but it could be done if you track down you expenses and pay them off, check out www.fastcreditcardapprovals.com here you will be able to compare all major credit cards on rates and rewards, GOOD, BAD OR NO CREDIT they have the right card for you.
7. Crown Jewelers; generally everyone starts out with a $1500 limit. They report to Experian and Trans Union. Buy something really small. It requires a down payment of $7.00 to $10.00. Then after 6 months of paying on time, there is no down payment required. They start reporting about a month after you join. Then when other cards you apply for see your limit they give you a higher limit also. The jewelry is not the top of the line. However it helps your credit score go up, and get higher limits on other credit cards.