A Consumer Credit Report(CRC) is a report of information that will have information such as your name, address, social security number, and credit payment history. It’s important for anybody to have a positive credit payment information to the credit bureau. Many companies, such as telephone, banks, or the apartment you live in, report your payment history. The information will be reviewed and you are granted a credit score. With a good credit score, you are able to get a better credit card.
Now, say that you have a few late payments or that your cell phone bill is delinquent. You can’t even get a credit card because your credit score sucks. You want to get back on building a good credit history. First and foremost, call up the people you owe. Don’t pay the full amount. These people are desperate for any money. Make deal with them. For example with $1000 medical bill: tell them, “hello, I want to pay my bills, but I only have $300..what can I do to pay my bill” and “How about I pay you $500 for everything?” …”Can you make sure, in writing, that once I have sent in my $500, it will be off my credit report as paid and on good terms.”
It’s very important to tell them that you want it in writing. Your next step is to apply for credit cards for people with bad credit score. Here are my top cards for people looking to rebuild their credit history:
Notice how the above two cards have setup fee and annual fee. For people with bad credit score, there is nothing you can do. However, I would suggest to call them up after you got your credit card and complain about the fees. Tell them you didn’t know it was so high. Believe me, they will want your business and will make deal with you. Tell them you can pay the setup fee but waive the annual fee if they want you to stay with them.
READ CAREFULLY: YOU MUST PAY YOUR CREDIT CARD BILLS THE FULL BALANCE OF EACH MONTH! I can’t overemphasize how important it is to pay fully. Don’t listen to anybody who says that it’s better to make minimum payment only for good credit history. Over time, once you know your credit score. You can apply for better credit cards with no annual fee and good cash back program.