The Help is Out There for Bad Credit
By: Larry Goldberg
It is really easy, especially these days, to get into trouble using your credit card(s). Young people, in particular, who get their very first credit card, their first taste of responsibility, who leave home to go to college and/or move out on their own for the first time, can find the credit card an easy way to take care of their needs. But it’s not just young people who can find themselves with bad credit, it can happen to you, too. Unanticipated expenses can happen to anyone and when they do occur, your credit card is there to help you if you need it.
It’s easy to lose track of how many expenditures you might make in a month. It takes control and discipline to maintain your financial resources properly. The ideal system, of course, would be to charge no more than you need and pay your credit card bill in full each month. Unfortunately, about 95 percent of the population is not able to do that. It’s a natural tendency to charge what you need, and from there, what you want. The amounts just seem to creep up and the situation gets out of control before you know it. You get overwhelmed; it starts to seem like there’s no way out. But, wait! There is help! Thank goodness! You can regain control of your financial circumstances.
Credit card companies have special options for people who have gotten in a little over their heads and bad credit resulted. One of these options is called a secured credit card. With a secured credit card, you will start out with a lower credit limit of perhaps $300, $500, or $1,000. Many banks will require you to deposit that amount of cash with them before you are allowed to charge on the card, depending on the history of your bad credit.
As with all other options, read the fine print. Some companies offering a secured credit card also attach higher fees or interest rates than others, so shop around before deciding how to handle your bad credit and turn it into good credit, with a secured credit card.
Depending on how you handle your finances, your account will be reviewed once a year and, if you’ve been successful in maintaining your account properly, you will be granted credit line increases without having to put the cash in before you spend it. Month-by-month you will build a new credit history for yourself and your bad credit history will eventually be pushed aside with new financial freedoms as the reward for continuing to pay your debts in a good and timely manner.