Before taking out a credit card, research the different companies and check for the best rates. Avoid cards with high interest rates and high limits. Until your credit is repaired, you want to reduce your expenditure as much as possible.
If you get another credit card and use it responsibly, you will be able to repair your credit rating. Make sure that with the new credit card, you pay off the bills on time every time. This will be noted on your credit score and will help to repair your credit.
Use the internet to search for credit card companies. There are many websites which list lots of credit cards. They will show their APRs, and state if they are available for people with poor or bad credit. When looking through the companies, try to stick to the more well known ones.
Try contacting your local bank. Many banks will allow you to open a credit card account through them. The bank may give you a card with a low limit. This is OK, since the aim is to show that you are making timely payments, and not that you are running up debts again.
Credit cards that require you to top up with money first before you can use it, will be a good option for you to control your spending. The advantage of this is that you can only ever spend what you put on the card.
If you are a home owner paying off a mortgage, you might be able to refinance your loan and get extra money to clear your debt. You then open a credit card account with your bank, and use the money to fund it. It will be like a debit card where you will only be able to use what you have put in. This will help improve your credit.
Source by Gary Clark
