4. Start by getting new credit
If bad credit caused losing your credit cards, get a new one.
Many people decide to never get a credit card again after bad credit, fearing that new credit cards will only get them in trouble again. In fact, choosing not to get a new one will only make it harder to completely rebuild your credit.
Using your credit card properly will help you build a positive payment history and put you on the way to making better credit score.
Having a bad credit score makes it hard to get credit cards approval from a major bank. Luckily, there are still some options, such as secured credit card, department store or gas credit card, credit cards for bad credit scores, or your local bank branch.
When you apply for a new credit, don’t make too many credit applications. This will have a bad impact on your credit score, making it more difficult to get approved.
While looking for a credit card that will get you approved, be wary of subprime credit cards that prey on those with bad credit. This type of credit cards often has high-interest rates and really high fees, making credit impossible to afford. So many people end up right back in debt with ruined credit after trying to rebuild with one these kinds of credit cards.
You should also avoid using prepaid credit cards to rebuild bad credit. Although you can get a prepaid credit card despite your credit history, they don’t report to credit bureaus simply because they’re not credit cards, thus using one won’t be of any help to your credit.
In case your credit card application is denied, don’t panic and make more credit card applications. Instead, you should wait to receive the letter in the mail that tells you the exact reasons why you were denied. Being denied has nothing to do with your credit score and could be associated with another factor, such as your income.