Got a Bad Credit History? Fix it with a Secured Card

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Credit Card Applications » Research » Guides » Building Credit History » Got a Bad Credit History? Fix it with a Secured Card

Got a Bad Credit History? Fix it with a Secured Card


Updated: December 26, 2012

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With too much spending, some individuals tend to lose their assets. Homes and cars get forfeited leaving them nothing of their valuables. This could have been prevented if their finances could have been managed properly. It is a very unfortunate scene but it's a fact of life and is happening to a lot of people.

Never say die is the motto to these people who have financially failed and lost a lot of valuables. But how can and where can they get started if all the valuable properties are gone? How can they stand on their feet again if the credit bureaus would report a bankruptcy on your part? Such declaration is a red flag on your part and will give lenders skepticism of whether they have to give you a second chance or not.

Bankruptcy appears on a customer's credit report for seven years and takes a lot of effort to be corrected or erased from the bureau's system. Good news is that there are some companies who would like to help these people recover despite their bad credit history. The secured credit card is given to people with bad credit and they should make sure that you are able to manage it for a certain period.

When you are able to manage your secured credit card properly then you will be granted an unsecured credit card or even a regular credit card or a loan in due time. The amount deposited for the secured card can be returned back to the customer in full when no payments failed. Having a secured card can also be an investment for you so long as you look for a bank where they place your deposit in an interest-bearing program. Not all banks have this kind of offer so spend time looking for one.

This sounds easy but the harder part is how to source out the deposit since the amount needed is a little high. It could be high but a very effective way to fix your credit history. Some misconceive secured deposits as an advanced payment but it actually serves as a fund so you still have to make the monthly payment. The bank will use the fund as a payment in case no payment has been made for the month.

Make payments regularly and on time; show your sincerity in fixing your history and company's will surely have their trust back on you.

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