Rebuild Your Credit

Five ways you can establish credit 1. APPLY FOR A SECURED CREDIT CARD If you’re building your credit score from scratch, you’ll likely need to start with a  secured credit card . A secured card is backed by a cash deposit you make upfront; the deposit amount is usually the same as your credit limit. You’ll use the card like any other credit card: Buy things, make a payment on or before the due date, incur interest if you don’t pay your balance in full. Your cash deposit is used as collateral if you fail to make payments. You’ll receive your deposit back when you close the account. Secured credit cards aren’t meant to be used forever. The purpose of a secured card is to qualify for a card without a deposit. Secured credit cards aren’t meant to be used forever. The purpose of a secured card is to build your credit enough to qualify for an unsecured card — a card without a deposit and with better benefits. Choose a secured card with a low annual fee and m...