Unsecured Credit Cards are an efficient way to rebuild your credit profile

Getting an unsecured credit card and using it responsibly is an excellent way to build creditors' trust in your ability to use new credit. Making on-time minimum payments with all of your creditors and keeping account balances low relative to the credit limit are key to receiving positive marks on your credit history.

STEP 1: CONFIRM YOUR CREDIT SCORE IS More THAN 600

The directions below are tailored for consumers who have a credit score of 600 or higher.
If you believe your credit score is lower or find out that you do not qualify for an unsecured card, please click the link for Secured Cards below.

SECURED CARDS

If your current credit score is greater than 600; you are on the right page. Proceed to the second step of the process.

STEP 2: UNDERSTANDING THE TYPES OF CREDIT CARD

Unsecured Credit Card
Most credit cards are unsecured, which means they don’t require a deposit as collateral in case cardholders can’t pay off their debt. Sometimes unsecured cards offer benefits such as cash back, travel perks, and store discounts.

STEP 3: FOLLOW A PLAN TO MINIMIZE COSTS

Create positive account activity
- In order to maximize score increases, charge between $20 and $30 a month on each account
- When payment is due, exceed the minimum payment but keep a balance of $5
- Credit bureaus will recognize the account has activity AND healthy balance ratios
Select cards with lower fees verses lower interest rate
- Credit Card usually have lower fees for higher interest rates
- If you are committed to paying the balance to $5 each month, it makes economic sense to choose the lower fee option
- We have done some of the homework for you - review our comments in each section below

download tracking worksheet

STEP 4: ESTABLISH 3 OPEN ACCOUNTS

Three open and active accounts is the "magic" number for improving your credit score. Each card in good standing will report positive trade lines and represent a larger portion of your credit file. In doing so, historical credit blemishes become less of a factor when calculating your credit score.

If you are unable to establish three Unsecured Credit Cards, please visit the Secured Card section of this site. There are additional offers available to complete the goal of three open accounts.