Using Merchandise Accounts to Rebuild Your Credit Ratings

April 15, 2012 by  Filed under: Credit 

Reestablishing your credit can be a daunting task, but if you take the right steps it is easier than you may think. When restoring your credit rating, it is essential that you do not neglect addition of positive credit accounts. Many individuals make the mistake of focusing on the removal of negative items, and do not add new accounts. The main reason for this is that there are many credit repair companies that advertise their services as being a solution for bad credit. But in reality, removal of negative accounts is not an exact science, and results cannot be guaranteed. Often times, individuals will attempt to repair their credit for 1 to 2 years without avail, and in the process waste hundreds or thousands of dollars. And even if the credit repair is successful, their credit scores will never get above 700. This is why no matter what your strategy is for improving your credit, it must include the addition of new credit accounts.

For individuals with a poor credit rating, there are very few options available. Examples include secured credit cards, deposit loans, bad credit car loans and merchandise credit cards. Of the aforementioned account types, merchandise credit cards are the more attractive option, but very few people know where to go to obtain these types of accounts. Although there are many vendors online that will offer no credit check credit accounts, most of them do not report your payment history to the credit bureaus. There are, however, companies that sell products or services on credit that report to the credit agencies. Search terms that will yield such companies include “add positive credit” and “add new credit”, but you want to be careful because there are a lot of companies that offer backdated credit accounts. Often times, they will advertise that they can add accounts with years of credit history in your name, which of course is credit history that does not exist. These types of services are a scam, and should be avoided.

To be sure that you are receiving the quality service you deserve, be sure that the company you work with offers a legitimate product or service, and accepts debit and credit cards as a form of payment. Paying for these types of services with a debit or credit card is essential, because if the service does not get rendered you can get your money back. If a company does not accept debit or credit cards, this probably indicates that they are not a legitimate operation and you should take your business elsewhere.

If you are someone who dislikes secured credit cards like I do, and has no need for a high interest car loan, merchandise credit cards are a great option. Make sure the company you choose offers accounts that are new, that they are primary accounts in your own name, that they are paid for using your debit or credit card, and that you can purchase products or services with them. If the accounts can meet all of these requirements, chances are that you have found a good vendor and you can feel comfortable moving forward with your purchase.

Jessica Hartmann

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