| People with a bad credit history will find it difficult to get | | | | The tax liens which are already paid and collection |
| a new credit card. Nevertheless, they can still obtain a | | | | accounts remain for seven years. Tax liens which are |
| credit card in spite of a bad credit by following these | | | | not paid will forever haunt you. |
| steps. | | | | 6. Write a request letter to your creditors asking to |
| 1. Make a credit card application on small retailer stores. | | | | reduce the limits of your credits in your accounts. It will |
| These companies are still willing to gamble on people | | | | help you lower the amount of your available credits. |
| with bad credit history. When they accept your | | | | Keep in mind that available credit amounts are still |
| application, you should purchase only on small amounts | | | | considered by issuers. |
| using your credit card. Pay your minimum expenses | | | | 7. Ask a family member or a friend to be your |
| every month within the specified time. It will save you | | | | co-signer on your credit card application. Select |
| from paying higher interest's charges. Late payments | | | | someone who has a good credit history. It will help you |
| will negatively affect your credit rating. Never go over | | | | a lot. In case you are not able to pay the loan, your |
| the 30-day period limit before paying. | | | | co-signer will. However, it will also affect their good |
| 2. Go to a bank, credit union, or savings institution | | | | credit rating. |
| where you do most of your business transactions. | | | | There are available clinic on credit-repair as well |
| They have your business, so they may also give you | | | | agencies on consumer credit that are ready to |
| a chance to get a particular credit card. | | | | arrange and restructure payment plans. But still, |
| 3. If you failed on the first and second step, then it is | | | | skipped and smaller payments will be always |
| much better for you to choose a secured credit card. | | | | accounted against you, even if the plan was accepted |
| A secured credit card is requiring the holder to open a | | | | by the creditor. You can be charged by these clinics |
| savings account and maintain it. It will serve as a | | | | as higher as 2,000 dollars for restructuring your |
| security on your credit lines. Whatever amount of | | | | payments and cover any administrative fees. But |
| money you have deposited on your account, some of | | | | some CCAs can arrange it for you free of charge. |
| its percentage will be allocated to your credit lines. | | | | 8. Always obtain the credit card report copy every |
| 4. If you owned several credit cards, reduce its | | | | year. Review for any errors done and report it |
| number as much as possible. Inform your creditors and | | | | immediately to the authorized body. If the remarks |
| request them to close your credit card accounts. | | | | posted on your file are true, then make sure to write a |
| Immediately report this change to other credit card | | | | brief letter explaining about the negative remarks |
| reporting agencies. | | | | written in your file. You could do this especially if you |
| 5. Avoid tax liens and collections, and bankruptcies. A | | | | are planning to rent a home or a house. |
| lien means not paying the federal or state taxes, or | | | | Even if there is a solution to a bad credit history, it is still |
| taxes on property. Remember, bankruptcies will stay | | | | better if you build a good history credit. No hassles, no |
| on the credit card report for a maximum of ten years. | | | | headaches, and no drawbacks. |