Understanding How Credit Cards Improve Bad Credit

February 27, 2012 by  Filed under: Credit 

If the recent economic downturn has left you with bad credit, don’t despair. Once you read this article and have a better understanding how credit cards improve bad credit, you will be able to rebuild your score. To begin the repair process, start by assessing your current financial situation, your FICO score and your current cards. Determining where you are is the first step necessary when building a new financial plan. Then, believe it or not, taking time to understand how credit cards improve bad credit will enable you to begin rebuilding your financial life.

Timely Payments!

The Federal Trade Commission offers consumers several great tips on how credit cards improve bad credit. One key to remember is that it is more important to maintain a history of timely payments than it is to maintain accounts for a long period of time. When you calculate your FICO score, more weight is given to payment history than the length of your credit history.

That means that it is okay to cancel accounts and cut up your cards. As long as you are able to pay on the accounts and cards that remain open, your score will begin to improve. In fact, getting rid of any accounts that tempt you to spend more than you earn is a good way to take steps towards a debt free life.

Is it a Lengthy Process?

Credit repair can take time and it requires patience and diligence. How long the repair will take will depend greatly on how much damage was done. The good news is that credit scores should improve on a monthly basis when you begin making payments on a regular time table. Ongoing payments is one example toward understanding how credit cards improve bad credit.

Just Apply!

Now that you have taken steps to rebuild your damaged score, it is time to actually proactively build new credit. Do you now have a better understanding how credit card use will eventually improve bad credit? One of the best ways to accomplish this goal is to fill out a joint application with an individual carrying a stronger score than you. As on-time payments are made to the card company, good history is reported to the bureaus. Over time, you will be able to find cards to apply for in your own name. But in the short term, joint card applications offer a nice bridge from your current situation.

For 15 years, worked in the financial industry. Hold a degree in Business Finance. Looking to use my knowledge and experience to help others find the right products to ease their financial and/or credit burdens.

Elizabeth Conner’s


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