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How to Cure Bad Credit

Bad credit can negatively affect the quality of your life. For one, it makes you a high-risk borrower, which signals lenders to steer away from you, making it hard for you to secure a loan when you badly need it. In addition, it may tarnish your good reputation, making it hard for you to land a job in your locality. Thus, it is important to re-establish good credit once you know you have falling credit scores.

Here are some useful methods that can help you gain back the confidence of money lenders and gain back your credibility as a borrower.

Get Hold of a Secured Credit Card
Getting a secured credit card is one of your best options when raising your credit score. Secured cards are offered by banks and card providers in exchange for a corresponding deposit. Your credit limit may depend on the amount of your deposit and basically, your deposit will serve as your collateral for using the credit card. Most often, banks require a minimum deposit of $200 up to $3,000. After you have used the secured card for several months in good standing, you may then be eligible again to apply for a regular one. The key is to always make good and timely payments with your secured card so that credit rating will be raised.


Acquire Good Spending Habits
Turn your back on ill-advised spending attitudes. Spend only what you can afford to pay. Refrain from missing payments and as much as possible, always strive to pay your dues in full. This will help you avoid exorbitant interest rates, which can hurt your finances even more. Make it a point to stay within your credit card limit and always settle your bills on time. Refrain from making purchases that are unnecessary.

Use One Card Only

Try to use one card only for all your purchases. This will help you keep track of your finances. Sometimes, when you use too many cards, you might get confused which of them to pay first. In addition, too many of them could only encourage you to indulge in uncontrolled spending.

Cards to Cure Bad Credit
There are a number of secured credit cards that may help you in rebuilding your credit standing.
One is the Capital One Secured MasterCard. This card offers a low annual fee but has a high APR. The security deposits needed to get this card, however, is on the reasonable level.

Another card that you may want to consider for repairing bad credit is USAA Secured Card. This, too, may have a high annual fee but you won’t be required to pay application fees. It also offers low balance transfer rates and low interests on cash advances and purchases.

Other options include the Applied Bank Secured Visa card and the Bank of America Secured Credit card.

These five secured credit cards may be able to help you recover your good credit standing. However, to really accomplish your goal of curing bad credit, you need to be a responsible credit card user.

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