One step is to get a secured credit card. With a secured card, you make a deposit in a savings account and this amount is used as your credit limit, less any fees required. The Public Savings Bank Secured Card does have a one-time setup fee of $79, but there isn't a monthly maintenance fee. There's a fairly low 11.24 percent APR, which is good for a secured card. This issuer reports your credit history to all three major credit bureaus. So you also have a chance to rebuild a good credit history.
Once you obtain a credit card, whether it's secured or unsecured, your next step is to pay your bills on time and be a diligent cardholder. If you maintain good financial behavior over time, your score should start to climb.
- I have bad credit and I'm on unemployment benefits. I just need a low credit limit to help in emergency situations. I can pay small charges back right away. What do you recommend?
- If I am in the Chex System, can I still apply for a secured credit card?
- I have a 590 credit score. Am I considered a bad score? What would be a good credit card to help me?