Trying to get your credit back to where it was before life’s uncertainties happened to you? Don’t worry, you are definitely not alone in this regard. I remember watching my own financial life explode. There was a point where I thought I truly had no way out. I had just lost my job, I started getting sick, and the bills were piling up. Sure, the Government helps you with the medical, and I’m right proud that the NHS is there to take care of us when we really need the m to. However, I still needed to get my life back in order after being ill. I found that creditors are actually very predictable. They would see only the bad stuff on my credit file and nothing good. I realized that it was time to take matters into my own hands.
You see, you really have to make sure that you’re looking at the bigger picture. It’s tempting to believe that you should just go cash only but this is shooting yourself in the foot. If you don’t use credit, you can’t earn credit. You have to use it in order to show lenders in the future that you really are serious, that you can really handle more than enough credit, and you’re a responsible person all around.
This is exactly the same reason why people want to look at your employment. Steady employment says that you’re not a flight risk, someone that’s just going to rack up a lot of debt and then bail when things get rough.
There’s something to be said about going with secured cards, however. If you need to get one, you have to invest the money into the deposit account. You need to make sure that you pay the security deposit, because it will send up setting the limit to your card. For example, if you want a credit line of 300 GBP, then you have to deposit 300 GBP of your own money. It sounds like a lot, and it definitely is…but it will pay off in the long run.
These companies also give you plenty of credit increases, as long as you’re willing to pay on time. They’ll slowly increase your deposit as long as you demonstrate that you can handle it. One of the worst mistakes that you can ever make when it comes to fixing your credit is to try to go and run up a large bill in a very short amount of time. That’s a red flag to the credit card company, and they might feel like you’re sliding back into your old habits.
You need to make sure that you instead focus on being responsible. There’s nothing saying that you can’t use credit, but you can’t blow through your entire limit in a few days. As long as you leave at least half of the card untouched, you should be good to go.
Those late payments aren’t a joke though. If you are just going to get a bunch of late payments, you might as well not even waste your time with the secured cards at all. You must make each and every payment on time in order to get things moving in the right direction.
Good luck with your upcoming secured carted applications. You’ll actually find that it’s not a bad process at all. The hardest part will be making sure that you leave behind honest information (an absolute must) and you have to be able to fund the secured card’s deposit before it’s activated. That’s about all there is to it. If you’re ready to move forward, the best way to go is to apply online. Check it out now!