The worst part about having bad credit is not being able to secure financing or get approved for credit cards. Its a bad spot to be in because you cannot get approved for credit, but you need credit to get your credit score increased. While frustrating this can be overcome with a bad credit visa card.
This is not the type of credit card you are thinking of though because you are almost guaranteed approval and it will increase your credit score just like any other credit card! So what kind of bad credit visa card am I talking about? The secured visa card.
The secured visa card functions like a normal credit card but is back by cash funds that you deposit in to an account with the company that issues you your card. if you default on the credit card they will take the money to cover the unpaid charges from the money you have in your account.
Because the lender is 100% guaranteed to get paid they will basically approve anyone that has the means to make monthly payments. This pretty much means that you have to have stable employment history and meet a certain debt to income ratio requirement. to figure you debt to income ratio divide your monthly bills by the amount you make every month before taxes. If this amount is 45% or less you are in great shape. some lenders may take borrowers with slightly higher debt to income ratios on a case by case basis.
Once you have your bad credit visa you will have to use restraint and common sense when using it to make purchases. Only buy what you can pay off in full every month and never take the balance to more then 50% of the card limit. Once you are over this limit your score can actually decrease and defeat the purpose of the card, to build your credit.
To see how easy it is to Increase Your Credit head over to http://www.diycredithelper.com right now. Just for stopping by I'll give you two FREE reports that will help you build your credit or fix a low credit score.
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