No one wants to have bad credit, but that is the harsh reality for millions of people around the country today. Every individual on the planet has their own circumstances in life, and their own situations to face. While everyone may want to keep their credit scores in tip top shape, sometimes it can be hard to manage everything going on, and if emergencies arise, folks may have difficulty paying certain bills.
This is a harsh reality, and something we all face. Maybe you took out a loan when you needed it and then lost your job, not being able to keep up the payments like you thought you would. Maybe you had a family emergency or had a medical problem that is costing you money. Whatever the problem, you aren’t alone. People everywhere face challenges every day and may not be able to make all their payments right on time, which can adversely affect their credit score.
Does this sound familiar to something going on in your life? Have you been worried about having a low credit score and no real options to build it back up so you can get a line of credit?
What Can You Do About It?
There is actually quite a bit you can do about it, actually. Your main goal will eventually be to get your credit score back in the high range, so you will be able to get some of the best credit card options available. But when you’re just starting to rebuild your credit after a hardship in life, there are still options available to you to help you bring that score back up.
- Try getting new accounts
While you might be under the impression that getting another credit card might be detrimental to your rebuilding of your score, it could be one of the best things to help you. If you can’t get approved for a credit card, consider a secured credit card.
Major financial companies such as American Express offer secured credit cards that you put a small cash deposit on and then pay off, just as you would a normal credit card. You can use these cards in stores and online, like any other credit card, and it comes with all the benefits of a regular American Express credit card.
- Try not to apply for too many credit lines at once
The problem with applying for a lot of cards at the same time is because each pull on your credit report can affect your score. This can make it difficult to get approved for a new account when you find a suitable card issuer for you.
- Watch out for “bad credit” credit cards with high interest rates
The companies that issue these cards know how desperate people can get in a time of crisis with a low credit score, when they need money right now. People end up getting them and using them for a while, only to end up with another card they can’t pay off.
- Watch out for prepaid credit cards
While these are certainly an option in a pinch, they are not a reliable method for rebuilding credit. Unlike secured credit cards, these companies do not report to the credit bureaus, which means you won’t be building your credit score using them.
Emergencies happen, and sometimes you just have to take out a loan or do whatever you need to do to get by. If financial problems inhibit your ability to pay your bills on time and your credit score is affected, the time will come when you’re back on your feet and ready to rebuild your credit score.
When that time comes, avoiding some of these mistakes will be a big help in achieving your goal of a higher credit score. The important thing to remember is not to fall trap to some of the “bad credit” credit card schemes you may hear about.
Nova Credit’s solution enables newcomers to avoid being restricted to secured cards. In terms of their American Express partnership, they enable newcomers from Australia, Canada, India, Mexico, and the UK to use their international credit history to apply for any American Express personal card, which is an enormous leap given that immigrants have previously been restricted to secured cards. They can then use their Amex card to start building a U.S. score, which chops down the timeline considerably.
To apply, go to novacredit.com.