![]() While the terms for these are horribly one-sided in favor of the lender, I assure you it is a small price to pay for the result you receive after only a few months. He told me that no major bank was going to accept my credit application, but there was actually an alternative option available – one which was especially perfect for those in my exact situation: to sign up for what is called a secured credit card. His second piece of advice was to get a secured credit card. His reasoning was simple: when you apply, they do a hard credit check which, in turn, can lower your credit score even more. Not exactly a winning pitch to convince someone to give you a line of credit! Two banks denied me, but one banker was kind and shared some info that has helped me raise my credit score over 100 points in the past five months.įirst, I should stop trying to apply for credit cards that would get denied. ![]() It went like this: “I am unemployed, have no credit history, and have a couple of thousand dollars in college debt that I will have to start paying on in the next year or two.” When I was finally prepared to get a credit card on my own, none of the banks I applied to would give me a chance. “How would I know owning a credit card would hurt me financially until I was able to try for myself?” What I Learned from Being Denied Credit Cards While these are legitimate concerns, I had to let them know I felt as if I had some control over my spending. With a credit card in hand, my parents worried I would spend money I couldn’t pay off and build a lifestyle I couldn’t really afford, rather than learning to save money. Here’s his story: Kevin’s 100-Point Credit Score Increase Story (IRL Example)Īs a junior and senior in college, I was always told that applying for a credit card could be my first step in the wrong direction. There are a few different secured cards to choose from, so compare your options and find one that best suits your needs.Ī former intern of mine, Kevin, was able to increase his credit score 100 points using a secured credit card. Otherwise, you could end up doing more harm than good. Just make sure to use your card responsibly by only charging what you can afford to pay off in full each month, and try to keep your balance below 30% of your credit limit. This type of card requires you to put down a deposit that serves as collateral, but it can help you rebuild your credit by reporting your positive payment history to the credit bureaus. If you have bad credit, one of the best ways to raise your score is to get a secured credit card. Click below and find out how to start repairing today.
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