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Bad Credit
Explanation:
A credit score below 620. If you aren't sure of your credit score, you can use a Free Credit Check in order to get an approximation or simply consider whether ANY of these statements are true:
- I'm currently late on a payment (i.e. loan, medical bill or credit card)
- I've either defaulted on a loan or credit card or declared bankruptcy within the last three years
- I've missed a credit card, medical bill, or loan payment by more than 90 days during the last 12 months
Our Thoughts:
While opening a credit card might seem counterintuitive, given that credit card misuse may be the reason for your bad credit, doing so is key to reestablishing your credit standing. Whether you actually make purchases or not is up to you, given that simply maintaining a credit card at zero balance is enough to add positive information to your credit files on a monthly basis, effectively lessening the importance of previous mistakes and causing your credit score to gradually rise.
Just remember that while having bad credit is nothing to be ashamed of, especially considering how many people have bad credit history, your credit score will not improve if you sit back and do nothing. So take an active role in rebuilding your credit standing by opening a secured credit card as soon as possible.