When you have bad credit, it’s easy to focus on getting credit without thinking about what to do after you get a card. Maybe you wanted a card with guaranteed approval for bad credit, so you signed up for a secured card. Now what do you do?
Here are 3 tips for using a credit card that big banks DON’T want you to know. These steps can take your credit score from bad to fair, good or even excellent:
- Buy small items. You need to use your card to build good credit. Start by buying inexpensive items so you don’t get in debt. Make sure you can pay your bill in full each month. One idea: put small a recurring purchase like a $10 Netflix charge on your card.
- Always pay your bill on time. It’s a good idea to pay your credit card bill at least a couple days before the due date. This allows time for the payment to go through. Your timely payment history accounts for 35 percent of your credit score.
- Put tech to work for you. Set up alerts from your credit card company to remind you before your bill is due. Also consider setting up automatic payments with your credit card company.
Now that you’ve worked on building your score, you may be able to take the next step and get an unsecured card. You may be able to skip the unsecured credit cards for bad credit and finally put a regular unsecured credit card in your wallet.