Finding the Right Credit Card to Establish or Reestablish Your Credit

With so many credit cards out there targeting the "credit challenged", finding the right one can be a very difficult task indeed. Many people have made mistakes with their credit in the past and would like to know how to go about reestablishing their credit. Also it can be noted that the process of simply establishing credit for the first time follows the same process as reestablishing one's credit. In this article I will go over the basic steps one must take to do this concerning credit cards and review several offers for credit cards that I feel would serve the purpose of reestablishing credit.

You basically have several options when it comes to obtaining a credit card for the purpose of reestablishing your credit. You can either obtain what is known as a secured credit card, or apply for a card that specifically targets folks with bad credit. The fees for the later card tend to be higher. You can expect to have to pay anywhere from $100 to $300 for the privilege of being approved. Oftentimes, the fees for these types of cards are deducted from the credit line of the card when you receive it. So when you get the card in the mail it may only actually have a few dollars of available credit on it. Do note that these types of cards are not always a bad option. If you wish to start reestablishing your credit straight away and lack the funds to acquire a secured credit card; applying for one of these credit cards with higher fees that target folks with bad credit may not be such a bad idea.

It is important to make sure that the card you apply for does in fact report to at least one of the three major credit bureaus. These credit bureaus collect information on the spending habits of individuals. In short, they collect information from as many consumer financial transactions or inquiries as possible. The credit bureaus earn their money by providing this information to creditors to use in determining a person's creditworthiness. Typically, obtaining a credit card with either the VISA, MasterCard, or American Express logo and making timely payments is one of the better ways to ensure that positive activity is being posted to your credit files.

It is not also a bad idea to request a copy of your credit file from each one of the major credit bureaus beforehand to see where it is you stand with each particular one. You can usually find out what credit reporting bureaus each card you are considering applying for report to in the advertising mediums they provide and promote their offers through. Below is a list of contact information for each one of the major credit bureaus:

Equifax, Inc. P.O. Box 740241 Atlanta, GA 30374 1-800-685-1111

Experian P.O. Box 2104 Allen, Texas 75013-2104 1-888-397-3742

Trans Union Corporation Consumer Disclosure Center 2 Baldwin Place P.O. Box 1000 Chester, PA 19022 1-800-888-4213

There are several offers currently on the market I would personally recommend for folks with less than perfect credit who are interested in reestablishing or establishing their credit. The Tribute MasterCard Gold Card in an unsecured card that is accepted at millions of locations worldwide. This card only makes you wait 6 months for a credit line increase when you make your payments on time. The Continental Finance MasterCard Credit Card is a great choice as well for persons who are seeking a second chance credit wise. The associated fees are higher on this card but again, this comes with the territory when one is interested in restoring their credit. Another excellent choice is the New Millennium Bank Platinum Visa or MasterCard, issued by New Millennium Bank. These cards are also designed for persons with limited or poor credit histories who may be having a hard time in finding a standard unsecured credit card they can get approved for.