The Best Way to Fix Credit With a Credit Card

You can use your credit card to rebuild your credit.

If you have bruised your credit, you need to start rebuilding your good name as quickly as possible. When your credit score is low, you pay more for everything, from your car loan to your mortgage. Using a credit card to reestablish your credit and rebuild your credit score can help you get back on track.

Things You'll Need

• Credit card
• Bank account

Instructions

1. Apply for a credit card, either a secured credit card that is guaranteed by the money in a bank account, or a traditional unsecured card. When applying for a traditional credit card, it is a good idea to look to a bank or credit union where you already have a checking or savings account.

2. Check the closing date on your credit card as soon as you receive it. Note this closing date on your calendar so you will not forget. It is important to send in your payment as soon as possible in order to avoid late fees and further damage to your credit report.

3. Keep track of your purchases on the card to avoid overspending. Make a note of everything you purchase, and make sure you spend only the amount that you can pay off at the end of the month.

4. Pay your bill as soon as it arrives. Do not wait until close to the due date--if you do so, your payment might not have time to be processed before the bill is due.

5. Set up an automatic payment from your bank account to the credit card. This will automate your payments and avoid any problems with missed payments that could damage your credit. Paying on time is the best way to rebuild your credit, and setting up automatic payments is the best way to make sure those payments arrive on time month after month.

References

• Credit Cards: Secured Credit Cards