Get a secured credit card. A secured card functions like a debit card in that you pay the bank the money beforehand, but your payments should be reported to all three major credit bureaus and go toward building your credit score. Only buy what you can afford, and pay the balance as often as necessary. Keep in mind to be cautious of high start-up fees. Be sure to ask if your transactions will be reported to all three major credit bureaus. After having your secured credit card for a year, ask to switch to an unsecured card with the same bank. Here’s a list of banks in Sacramento that offer secured credit cards:
• Bank of America
• Wells Fargo
• CitiBank
• U.S. Bank
Get a gas credit card. When you’re back on track using a secured credit card, you can try applying for a gas credit card. Try to get a card like this because gas is a necessary expense lessoning the urge to splurge. Be sure to pay the balance off as often as possible just like your secured credit card.
Get copies of your credit report from all three bureaus. You can get one report a year from each bureau for free. You can order your credit report online at: www.annualcreditreport.com
You can also call to have your credit report mailed to you. Here’s a list of the credit bureau contact information:
• Equifax: (800) 685-1111
• Experian (888) 397-3742
• TransUnion (800) 888-4213
Once you receive your credit reports, be sure to dispute incorrect information. To dispute your credit report you can use the online dispute form on the Equifax, Experian, or TransUnion website. Pay your bills on time. Get a calendar with all your due dates (or enter it into your cellular phone), and check it constantly. Make sure the money is ready ahead of time, and try to mail payments or do online transfers a day or two ahead of the deadline. Create a budget and figure out exactly how much
you can only spend each month.
Remember, people have walked this road before you. If they can make it, you can too. Try not to apply for too many credit cards or accept every credit card offer in the mail because it can have a negative impact on your credit score. Avoid spending money you do not have on the any type of credit card so that you can keep yourself from sliding into bankruptcy again.