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Re-establishing Credit
İMoney Magic, Inc. 10/09/99
Saturday Daybreak KATV, Chn. 7
Mary Ann Campbell, CFP

The Problem:
If you've had bad credit, or if you've declared bankruptcy, re-establishing your credit takes patience, determination, and responsible actions. However, you can use your "magic" to not only build a good credit record, but be rewarded with credit card perks in only a couple of years.
Immediately, you must begin to pay every bill regularly and on time. That includes your: Rent or mortgage, Utilities, Installment payments, Medical bills, Alimony and Child support. You cannot have any tax liens if you want to obtain a "secured" credit card.

Money Magic Solutions:

Obtain a "Secured" card: First, understand how a secured card works.
  • You make a the minimum deposit required ($200-$15,000.)
  • You are issued a card with a limit of that deposit. The deposit usually earns 2-3% interest. It is held as security. Your charges do NOT come out of that deposit.
  • You pay on you charges like you would pay on any credit card.
  • As you show dependability, you can raise your deposit/credit limit and within about 18 months, graduate to a regular credit card.
Money Magic Tips and Tricks:
  • Consider bank debits (automatic drafts) for minimum payments to make sure bills are paid regularly and on time.
  • Consider holding out one credit card if you declare bankruptcy. You can use that card throughout and after the proceedings.

    If you have already filed and included everything, they you might be able to reconfirm one of them after the bankruptcy. This allows you the chance to pay it off and keep the card. Pick the one with the best interest rates and let them know of your intentions.
How to use "your magic" for help:
• http://www.CardRatings.com
Arkansas Company with reward cards, low interest, student cards, etc.
If you don't have access to the web, use the computer at your local library.