Bad Credit FAQs

Did you know there are more than 100 millions Americans are living with bad credit everyday? If you are one of them, you probably have many questions about what bad credit means and how much it can affect your life. As a result, we have created this Frequently Asked Questions & Answers section to help you better understand your credit outlook.

Q. How do I know if I have bad credit?

A: If your credit score is 619 or lower, then you have bad credit. This credit score also known as FICO score is calculated based on many factors such as age of credit history, payment history, how often you apply for new credit & the amount of debt you carry. If you are not sure what your credit score is, get your free credit score here.

Q. Can I still get a credit card if I have bad credit?

A: Yes, you can still get approved for a credit card even when you have bad credit. There are 3 different kinds of credit cards for people with bad credit.

• Unsecured credit cards - it's the most popular, function like a standard credit card, except the credit line will be lower and the fees higher.
• Prepaid credit cards - it require funds pre-deposited into an account in order to activate the card, and the charges you make to the card are deducted from this deposit.
• Secured credit cards - these are cards backed by a deposit you make into a bank account, which serves as security for the card.

If you are still not sure which kind of credit card is best for you, please read: How To Compare Credit Card Options For Those With Bad Credit

Q. How can I build or rebuild credit?

A: Before you start building or rebuilding your credit, you need to ensure your credit report is accurate. If you have never checked your credit report, now it's the time. You can get a credit report and free credit score here. After you obtain your credit report, it's important to review everything and make sure every item is accurate, if there's any discrepancies, you need to dispute each item with the credit agencies. Your credit report will have more details on how to do that yourself.

After making sure your credit report is accurate, it's time to build or rebuild credit. Using a credit card is actually the easiest way to build or rebuild credit. If you have bad credit or no credit, it's best to start with a secured credit card. It requires a security deposit to get approved, but your approval is guaranteed and it looks and works just like a regular credit card. Although your credit limit will be relatively low in the beginning, it will gradually increase automatically when you pay your bills on time every month for at least 6 months. After a few months, given you pay your bills on time every month, your security deposit will be returned to you fully. Since most secured credit card companies report your account activities to the major credit agencies every month, your credit score will also start to improve over time.

If you prefer not to give a security deposit, you may try to apply for an unsecured credit card for bad credit. If you can't get approved, then a secured credit card is your best option.

Q. I have additional questions, do you have customer service support?

A: Yes. If you have additional questions, please contact us.

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