Tips to Rebuilding Credit and Establish it a New
Many factors can cause credit history to become tarnished – loss of job, break up of marriage, bankruptcy or being in a foreclosure situation. Today, all these reasons are catching up to the majority of Americans.
Then there are others who have just forayed forth in the world of earning money without any credit history.
Against this background of weak recovery from recession, banks have become increasingly tight fisted about advancing loans.
Nevertheless, there is always a way out of this impasse, although it will entail certain dos and don’ts. The gas stations and the banks are no longer doling out credit cards without asking questions.
In the 90’s, college students and many others did not have to face a barrage of questions; they asked for credit cards and they got it. This situation continued till the early part of this last decade.
One of the victims of these changed times is Thomas Agostino, who is attending college, working in an eatery and staying at home eager to save dollars. Aged twenty- two, Agostino is full of confidence about availing of a credit card. But this did not happen and he said that he talked a full thirty minutes with a credit card firm only to be refused. This made him very frustrated and angry.
Today, it is a challenge to get a credit card. Banks have become strict since the last two years. The days today are a repeat of the atmosphere that prevailed in the credit world during the 70s and 80s.
An alternative to this problem is to try and get a secured credit card. Otherwise known as debit card, it is known to be convenient but it will not push up the credit score. Those holdings secured credit cards but have to deposit a minimum of few hundred dollars with bank as security. The bank keeps that money and allows for credit card buying. One cannot cross the limit that is kept with the bank.
If timely payments are made there, is the chance to build up a good credit score. Then one can ‘flip’ it to avail of a typical credit card. But if any payment is missed it is taken out of the security deposit and the credit rating gets negatively impacted.
Another stumbling point is the high fees that come with it. It is better to consider the fees before signing up. $59 is annually charged by Millennium Card. Platinum Zero charges $120 per year. Those with modest annual charges are The Citi Secured Mastercard and Orchard Bank Secured VISA/Mastercard.