Consumer Bad Credit Guide

Welcome to the consumers guide to bad credit!

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Establish First Time Credit

Trying to establish first time credit can be a challenging task. However, If you are at least 18 years old and have a regular source of income, you're on your way to qualifying for a credit card and establishing credit.

If you have no checking or savings account, make sure to open one before applying for a credit card. They do not help your credit report, but they will show the creditor that you are aware on how to mange money. If you are a full-time student, make sure to include that information on your credit application. Creditors like to grant full-time students with credit cards even though they may have no past credit history.

Apply for a department store credit card or a major credit card (MasterCard, Visa, American Express, Discover) and use it responsibly by keeping your balance low and paying your credit card bills on time.

If you still get turned down for credit, ask someone with a good credit history to co-sign on your credit card application.

As a last resort, secured credit cards are a great way to establish first time credit. Most secured credit card companies require a deposit equal to the credit line your are seeking. Make sure they report your payment monthly to the major credit bureaus. Making your payments on time monthly will increase your credit rating. You will also get you deposit returned to you after one year, turning your secured credit card into a unsecured credit card.