Some Facts and Tips About Repairing a Bad Credit History

Many of today's credit card users do not know the facts about a bad credit history, thinking that there is no such thing like poor credit. The truth is that different lenders look at different things in order to decide whether or not to approve a loan request.

Having a credit card with bad credit will force you to pay higher interest rates and fees. You can qualify for a home loan with poor credit, but you will pay much more that one with a good credit history.

The fact is that lenders are allowed to charge different interest rates to different people; they are not permitted to discriminate because of race or sex, other than because of past credit history. This is the reason why several people are involved in repairing their bad credit history; they know that they might be able to get credit, although they will pay extra.

Believe it or not, some agencies actually target individuals with bad credit, because they know that sometimes a person who has poor credit history, without trying to repair it, will work hard to make his/her payments on time. They know that these people, from time to time, tend to be desperate for credit and therefore they also tend to be unconcerned about interest rates.

If you have ever stated bankruptcy, you may have acknowledged an offer for an unsecured credit card shortly after the bankruptcy was finalized. You may have found that the fees and interest rates were very expensive and hard to pay off. Therefore accepting offers like these might not help you at fixing a poor credit history.

If you spend more than what you can afford, and you charge up to your credit limit or you are unable to make your payments on time, then accepting a credit card with bad credit will only make it worse for you.

Repairing a poor credit history includes many factors;

* correcting information on your credit report,
* getting rid of negative items from your credit report,
* discussing with creditors to remove negative items,
* having excessive inquiries removed,
* building good credit.

If you have a bad credit and you want to build a good one, you can try to obtain a secured credit card which reports fee history to the credit bureaus.

Remark:
A secured credit card is held by a deposit into a savings account.

Also you should shop between the different banks that offer these cards since interest rates and fees vary.

Probably in the beginning your credit limit will be the same as the balance in the savings account. However if you'd use the card occasionally, you'd make monthly payments on time and you would NOT charge up to the limit, after a while you would see the results.

There are companies that concentrating on repairing a bad credit history. Therefore they can do most of the job for you, but it depends on you to create a good credit history. You should you use it intelligently. And try to have in mind that accepting a credit card with poor credit is one way to establishing a good credit history.