Repair Credit with Debit Card
devider Unfortunately, there isn't a magic wand for credit repair. If you've been hit with collection accounts, bankruptcy, foreclosures, or liens- there isn't a quick fix. The only way to erase these negative marks is to wait for them to expire after seven to ten years. However, that doesn't mean that you can't get credit or work towards improving your credit score. Be aware that you'll probably be categorized as a subprime consumer, meaning that you're considered to be a high-risk candidate. Not all lenders work with subprime consumers. Those that do, almost always charge higher interest rates and fees as well as limit the loan amount you qualify for.

Secured credit cards are a great way to repair credit. Unlike a typical credit card, secured credit cards act more like a debit card. For example, you give the lender a cash deposit for $100 and in exchange you get a credit card with a $100 limit. That way, if you default on the monthly payment, the lender can use the deposit you provided to cover the expense. Typically, secured credit card lenders charge high interest rates and hefty administration fees- that's how they're able to operate within the subprime consumer market. So, you don't want to have these cards forever, but they do offer a great way to rebuild your credit history.

*There is an entire industry of scam artists out there preying on people with bad credit. These fraudulent companies offer services promising to clean up your credit reports. They charge outrageous fees that range from $40 to upwards of several hundred dollars per month. And, basically all they're doing is sending dispute letters to the three major credit bureaus. Don't fall into their trap- save your time and money and avoid these useless programs all together.

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