How to Rebuild Credit With Retail Credit Cards

Having poor credit can affect you in multiple areas of your life. You may be unable to finance a vehicle or home, be charged higher insurance premiums and interest rates and be unable to secure certain jobs. Rebuilding credit can take many months and even years, but the process needs to begin somewhere. It will require time, dedication and focus on your part. Retail credit cards are useful in the credit-rebuilding process. Handling retail or store credit accounts properly will create a positive account history on your credit report and will therefore begin to increase your credit score.

Instructions

1

Visit the Who Gave Me Credit Web site. Input your state and current credit score and determine what retail credit cards are being given in your area to people with similar credit scores. Apply for one to two retail credit cards for which it appears you will qualify. Avoid randomly applying for store cards, because each time you apply, you reduce your credit score and diminish your chances for a successful approval.

2

Calculate 30 percent of the card limit upon receipt of the credit card. Determine this amount by taking the credit limit and multiplying it by 0.30. If your store limit is $300, for example, 300 x 0.30 = 90. Never have a balance higher than this amount on your account. According to the Come Back Credit Web site, a balance of less than 30 percent of the credit limit is best for your credit score.

3

Make all payments on time. You do not need to pay the balance in full each month, but you should never miss the minimum payment due.

4

Allow a minimum of nine months to pass and then review your credit score. Depending on the level of your credit score increase, it may be possible to apply for other types of credit. If your credit score remains under 600, continue to make payments on time, keep your balances under 30 percent and review the score every six months.