2) Open a Secured Credit Card
This card is for folks who’ve got bad credit, low credit, or no credit at all. A secured credit card is one of the best ways to establish or re-establish credit and earn the trust of creditors. A secured credit card requires a cash deposit (usually a minimum of $300-$500) that also serves as the credit line for that card. So, if you deposit $300, you can charge up to $300. The key is to make a few small purchases every month and pay it off immediately. Don’t use this card to carry a balance – use it to show you’re financially responsible. The bank may extend the credit line without a cash deposit once they see consistency on good payments. Make sure the card issuer is reporting your good payments to the credit bureaus. This is how you’ll build your credit reputation and become eligible for an unsecured credit card.
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