You're here because you need help. I'm here to offer that help.
Bad credit is embarrassing and prevents you from living the life you want to live. Your interest rates are higher if you are even approved for a loan. Going into a car dealership and feeling sick because you don't know if you will be approved for a loan or not. Yeah, most of the auto dealerships advertise bad credit as being acceptable until you show up to buy a car. That's a gimmick they've been using for years and will continue to use for years to come. It's no loss to them if you come in and can't be approved for a loan. For every 10 people with bad credit one person will show up that will get approved for the loan. It's a number game banks play and now is your chance to step up to the plate. Having good credit empowers you and lets you walk into that auto dealership with your head up knowing that not only will you be approved for the loan but you will get the best rates possible. If they don't want to give you a good rate, shop around and you'll find that rate. Take the ball out of their court and start rebuilding your credit today.
Check your credit report. Check your credit report.
I mention this twice because it is the single most important thing you can do before you start your quest for financial freedom. You'll want to see what, if anything, lenders are saying about you. That kind of information is contained in your credit report at each of the three major bureaus: Equifax, Experian and Trans Union. Credit reports are used to create your credit score, the three-digit number lenders typically use to gauge your creditworthiness. Lenders also may look at the report itself, as may the landlords, employers and insurance companies who use credit to evaluate applicants.
Resources for receiving your credit report:
Get Your Credit Reports
Start a checking and savings accounts
Here's a basic step that's sometimes overlooked by people seeking credit. Lenders see these accounts as signs of stability. Opening checking and savings account is also one of the few things you can do as a minor to start building a financial history. While you can't get a credit card in your own name until you're 18 and can be legally held to a contract, many banks have no problem letting you open an account. Many, but not all. If your bank balks, you need to either look around for another bank or consider opening a joint account with an adult.
Resources for applying online for banking and checking accounts:
List of Banks in the United States
Get a secured credit card
If you can't get a regular credit card, apply for the secured version. These require you to deposit money with a lender; your credit limit is usually equal to the deposit. You'll want to screen your card issuer carefully. To be frank, there are a lot of bad guys in this particular niche of the credit world. Some charge outrageous application or annual fees and punitively high interest rates. Your credit union, if you have one, is a good place to start looking for a secured card. You can also check Bankrate.com's list of secured credit card issuers. Ideally, the card you pick would:
- Have no application fee and a low annual fee
- Convert to a regular, unsecured credit card after 12 to 18 months of on-time payments
- Be reported to all three credit bureaus.
- If the issuer doesn't report to the credit bureaus, the card won't help build your credit history.
Resources for secured credit cards:
Orchard Bank Secured Credit Card Card
*Retain the services of a good credit attorney
People automatically get scared that they'll be paying huge amounts of cash to retain a lawyer to help rebuild their credit. It is understandable and lawyers can be expensive. There are alternatives and they are very affordable. You must make the decision because it can save you a lot of time and maybe even some money to retain their services. Some are priced as low as $29 a month and you're not obligated by any contracts. You can cancel anytime without any penalties.
Resources for Credit Repair Law Firms:
Lexington Law
Ovation Law Group
eCreditAttorney
Monitor your credit to see what's been removed or added
Gas companies and department stores that issue charge cards typically use finance companies, rather than major banks, to handle the transactions. These cards don't do as much for your credit score as a bank card (Visa, MasterCard, Discover, etc.), but they're usually easier to get. Again, don't go overboard. One or two of these cards is enough. If you get many more, you may find that later in your life these accounts could prevent you from getting the highest possible credit score. That's not a reason to avoid them completely, because right now they'll do you some good. Just don't apply for half a dozen.
Resources for credit monitoring services:
Lifelock Identity Protection
