Well first, you need to pay off those bad debts. Say if you have a target credit card that's in default. If you have major debt like car and home repo. then you should look into bankruptcy.
To build credit you need to obtain a credit card, even a secured one, and charge no more than 10% of the credit limit each month and pay this off. What will be reported on your file will only be the highest amount ever charged on the card but they will report that your account is current and paid as agreed.
Good Luck. As you see now..... American is based on someones credit report.
If you have the cash, you can easily get a secured credit card. Use that, and this is key, PAY OFF THE FULL BALANCE EVERY MONTH! A secured credit card is one that is secured by money you deposit in a bank - say $2,000 - and the credit card will have a limit of $2,000. That way there is no risk to the bank. This will show potential lenders that you can now use credit and have the self-control to stay out of trouble with it.
First what you want to do is quit spending! Pay on your credit cards, if you have any (on time--no extra charges) that you have now and your credit will improve in no time. Why would you want a pay later plan, all you are doing is... paying later! That's no help. Dave Ramsey is good, but he tells it like it is! Been there done that with our son!
Also, you could check out DaveRamsey.com. He is a financial expert that is a Christian and really speaks in a language that the average person can understand. I've really learned a lot of sound principles from his radio show & books. Best of luck.
Actually, being added as an authorized user to someone else's card isn't the great plan it used to be. Because of the proliferation of businesses that were recruiting people with good credit and paying them to let strangers "piggyback" on their credit, the credit bureaus have wised up. They're ceasing the practice of automatically giving an authorized user the same credit history as the original cardholder. This article at Bankrate explains what has happened: http://www.bankrate.com/brm/news/Dr ... zed_users_score_a1.asp?prodtype=pfin
Here's an idea if you have a family member that has really good credit and are willing: If your mother, for instance, has good credit, she can add your name to some or all of her credit cards. You don't have to actually receive the card, she can shred it or whatever. But her good credit on that card, now becomes your good credit.
There are a few companies that extend credit with no credit check -- Yves Rocher as mentioned, and also Fingerhut. But if you're trying to rebuild bad credit, they won't help you because they don't report your good payment history to the credit bureaus. To rebuild bad credit, you might want to get a secured Mastercard or Visa. It's "secured" because your credit limit is equal to an amount you put into a kind of savings account with the credit card issuer. Just type "secured credit card" into a search engine, but be careful and check out any company you're thinking of doing business with.
i love this company & have ordered from them many many times (but not online)
they have a lot of really good deals -
http://www.christian-credit-counsel ... om/?gclid=CImdjLWT7I8CFShsGgodKCaGNQ
A biblically based company won't rip you off.
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