Sometimes bad credit items stay on your credit reports despite your best efforts to fix your credit (I detail the best method credit repair methods in my $2.99 Kindle book on free credit repair). You dispute bad items with mistakes, but the lenders somehow manage to verify the data to the credit bureaus' satisfaction, which means they stay on your credit reports. What else can you do to repair bad credit? Paying your current bills on time helps, but you can't rebuild a good payment record if you don't have any accounts. That's where secured credit cards come in.
You guarantee secured credit cards by making a bank deposit. The issuer makes your credit line the same as your deposit, with the right to seize the money if you default. This guarantee makes secured credit cards accessible even if your credit is very bad. Make sure you get your secured card from a bank that reports it to TransUnion, Experian, and Equifax. It won't help if your payment history doesn't go on your credit reports. Get your free annual credit reports to make sure your secured accounts are there. As you pay them regularly, your good credit builds and opens up possibilities for unsecured credit lines.
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