How to Rebuild Credit With a MasterCard
MasterCard is accepted around the world and is an excellent choice for rebuilding your credit. Careful use of the card can increase your credit score as you demonstrate that you can handle credit responsibly. A secured MasterCard may be your best option for rebuilding credit. The card requires a deposit into a savings account that serves as collateral, and the amount on deposit equals your credit line. The presence of collateral usually makes credit approval easy. Unsecured MasterCards do not require collateral. Virtually all banks and credit unions offer the cards.
Other People Are Reading
Instructions
-
-
1
Confirm that the use of your MasterCard will be reported to the nationwide credit bureaus---TransUnion, Equifax and Experian. Some cards carrying the MasterCard logo are actually debit cards, although they are marketed as "prepaid credit cards." The prepaid cards are not reported to the credit bureaus and cannot help improve your credit rating. Call the customer service number on the back of your MasterCard or on the credit application to ask if your MasterCard is a full-featured credit card.
-
2
Make small charges each month on your MasterCard and pay off the balance when the statement arrives. This allows positive payment history to be reported without incurring debt.
-
-
3
Ask for a credit limit increase after you have made on-time payments for more than a year. Keep using the card each month and paying off the balance each time. If you must carry a balance, keep it to less than 30 percent of your credit limit. MyFICO reported in 2010 that more than half the people with credit cards use less than 30 percent of their available credit. Matching that average will help as you rebuild your credit using a MasterCard.
-
1
