I’m a big believer in second chances. Not for cheaters. Not for abusers. Not for those who purposely do harm to others. For finances.
Let’s be real; we’re not born being financial savvy. We have to learn it, and unfortunately some of those lessons begin with failure.
There were a lot of good people who made bad financial decisions and were forced into foreclosure in the last ten years. I can’t even imagine how difficult it must be to rebound from the credit score knockout punch they surely took.
And then there are young adults with no money management skills who quickly fall into credit card trouble they can’t handle. (I was one of them.) Fortunately, I’m stubborn and dug my heels in to get myself out of the mess, but for those who don’t have the support or resources to do that…don’t they need a second chance?
I think they do. (Well, most of them… there’s always scruff on the fringes.)
But, sometimes you need a second chance, because you weren’t quite ready for the first.
[clickToTweet tweet=”Sometimes you need a second chance, because you weren’t quite ready for the first. ” quote=”Sometimes you need a second chance, because you weren’t quite ready for the first.”]
Consumers who are looking to build or rebuild their credit may find it helpful to apply for a secured credit card, where applicants provide a security deposit as collateral. If your goal is to rebuild credit, it’s vital that you choose a card that will report to the three major credit bureaus, and shop around to compare card fees.
One solid option is the newly launched Discover it®Secured Credit Card. It comes with the same rewards and benefits as the Discover it® Card, including Cashback Bonus® rewards and your FICO® Credit Score for free on monthly statements and online, all with no annual fee.
After one year as a cardmember, Discover will do monthly reviews on its secured credit card accounts to see if cardmembers can transition to accounts that don’t require security deposits.
Additional Discover it Secured Credit Card offers:
The Discover it Secured Credit Card features 2% Cashback Bonus at gas stations and restaurants on up to $1,000 in combined purchases each quarter, plus 1% Cashback Bonus on all other purchases. In addition, new cardmembers can double all the cashback they earn at the end of their first year as a cardmember.
No late fee on first late payment, and no increase to APR for late payment
Reporting to all three major credit bureaus
$0 Fraud Liability Guarantee means cardmembers are never responsible for unauthorized purchases on their Discover card
Freeze ItSM – an on/off switch that cardmembers can access on the Discover mobile app or website to prevent new purchases, cash advances and balance transfers if they misplace their card
Award-winning 100% U.S.-based customer service available day or night
5 Tips to Keep in Mind
Pay on time every single month without fail. Even one late payment can significantly slow down or thwart your efforts at rebuilding credit.
Don’t charge more than 25-50% of your credit limit each month. Charging more has a negative impact on your credit score.
Only charge purchases you can pay off in full every single month.
Be patient. It may feel like an awfully long road back to good credit, but you’ll get there.
Keep credit lines open after you pay them off; just don’t charge on them anymore. This demonstrates you can handle credit responsibly.
Click here to find out more about how using a Secured Credit Card can help build your credit.