How can credit cards repair your credit?
When you have bad credit, it makes it very difficult to get a home loan. We have many articles dealing with how to find bad credit home loans in your area, but even if you’re able to find a loan with lower credit requirements, you should always be working to improve your credit score so that you can get better terms in the future.
One of the very best things you can do in order to repair bad credit (or even improve good credit) is to get a credit card. If you make small but consistent payments with the card and pay them off promptly, it looks like you are paying off your debts very quickly, which tells mortgage brokers *and other money lenders) that you will probably be able to pay off your loan.
Secured credit cards are preferred for this kind of credit improvement. When you get a secured credit card, you give the bank a deposit (usually $100 or so) that will be used to make any payments on the card that you miss. Secured cards are harder to miss payments on and are easier to get and apply for, even if you have bad credit.
Using Credit Sesame To Repair Your Credit
One of the most important things to do when you’re repairing your credit with a secured or unsecured credit card (or using any other method) is to check your credit score regularly. Most of us don’t check our credit regularly for one of three reasons. One: we don’t think about it unless we’re about to apply for a loan. Two: we’re scared of what we might find. Three: we don’t think our credit score is that important.
But if you’re not keeping an eye on your score, you can’t respond to changes quickly. If your credit score suddenly falls and you don’t check it for a year, you won’t be able to take the necessary steps to repair it (which may include taking out a credit card and making those small, regular payments we talked about.)
We’ve partnered with a company called “Credit Sesame” that we believe is the best way to keep an eye on that all-important credit score. They allow you to monitor your credit for free and even provide a free credit strategy so that you know exactly what you should be doing to get your score to where you need it to be. There’s absolutely no purchase required, and you can access your credit through a handy mobile application or through desktop.
Our experience with Credit Sesame has led us to believe that they truly do care first and foremost about giving consumers the free tools they need to reach their financial goals. So get started today!