Should I get a credit card to rebuild my credit or leave it alone and let it rebuild itself?

Question

My credit isn't great at all, but I owe nobody nothing anymore, all my debts are paid off. (my credit report is, however, ugly, lots of negative activity/reports, but everything is paid off nonetheless)

I paid off my last remaining debt just recently. So, the "catch up" part of my credit rebuilding is complete. Now it's time for the re-establishing.

I don't "want" a credit card nor do I need one. But I'm concerned about idle credit. Will having no current positive activity hurt or help my credit score?

I busted my butt for too long paying off debts, I'm not about to let my score go back to POOR again! I want to get my score up to good standing. Right now I'm not good but not poor either. It's "not good", lol.

So... should I get a credit card, will it help in re-establishing my credit? Or let my credit remain debt free for a while and recuperate so to say and re-build itself?

thanks! =D

Answer 1

Yes, a credit card if used properly can help build or rebuild credit, depending on the situation that you're in. I totally agree with LB in that a secured credit card's the perfect thing to rebuild your credit. A big difference is that with an unsecured card with a lower limit will take much longer to build your score that a secured one. It can take anywhere from 6 months to a year to build your credit with an unsecured card, as opposed to 60-90 days with a secured credit card. Also, you have more control over the Itlimit because you can increase the limit, which can improve you credit because by increasing the the credit line, you improve the ratio of available credit and the total debt you owe.

The easiest way to use a CC like this would be by making SMALL purchases (max $20/month) that can be paid off in full on time, every month. Usually after a year or so, the card converts to a regular card, and you get the deposit back!

Hopefully, these tips will help

Thanks for reading!

Answer 2

here are two great credit cards

Blue from American Express®

0% APR for up to 15 Months

As low as 8.99% APR

no annual fee

full detailed explanation of the credit card can be seen here...

http://www.cardlister.com/CreditCards_de...

Citi® Platinum Select® MasterCard®

0% APR for up to 12 Months

As low as 8.49% APR

no annual fee

full detailed explanation of the credit card can be seen here...

http://www.cardlister.com/CreditCards_de...

Answer 3

FICO scores are just not about removing bad marks but also making good credit. Poor credit is bad and having no credit is just a tad bit better than poor credit. You should be trying to make good credit so when these negative marks remove, not only is your credit history clean but you have good credit on your record. Try getting a secure credit card from your bank. Use it sparingly and pay the amount in full every month you use it. After a while, your credit will get better.

Answer 4

You should use credit repair agency to fix your credit - for example this one - http://creditreport.undonet.com - They can clean lots of bad stuff from your credit report - and do it much faster than yourself, so your credit will go up fast.

Answer 5

i would go to http://www.cellsware.info/restorecredit . they're an awesome company that helps you fix up your credit score. I was having a lot of problems with my debt and my credit score was hooorrrrrrible so one of my friends showed me this site and they brought m back on th right track and helped m raise my score

Answer 6

If you don't have credit, they think you can't pay.

So what you do is get a card, buy some small stuff, and pay it at the end of the month in full.

If all they see is the bad stuff with no hint to them that you have reformed and now pay they have no way of knowing that you have changed.

Answer 7

Hi. My advice to you is to get a secured credit card through your local FDIC banks and with 300 dollars, you can open up a credit card.Pay the 30 annual fee......NOW with that credit card, set up an automatic payment for one bill that usually stays around the same price (like your cell phone bill). Then set up a payment schedule for your bank to debit the full amount in a week after the credit card has paid for your bill to avoid interest.

Then save up 1000.00 and get a CD loan. Set up another checking account from your exisitng account and take 800.00 from that CD loan and put it in the new bank account. Set up automatic payments to pay back your CD loan and leave both of those credits alone. After a year, you should have a good credit standing and do not apply for another secured credit card after six months to fix your credit some more. You have finished the hard part. Now you can let your money work for you. Good luck.

P.S. Do not touch that money! lol Tempting but never touch it. You've worked so hard.

Answer 8

It depends, can you leave your credit card alone if you get one, or will you max it out.  

If you can be a good boy or girl this time, then get one, make one small purchase, and let it rebuild.  

If you cannot, then it is better to leave it alone.

Your credit score improves the longer you have a paid up to date credit card.