Bad Credit? Repair It With A Credit Card

Do you have bad credit? Imagine that you're a baseball player up at bat. Bad credit is like having two strikes against you. However, you're not out just yet, and there are ways to improve your situation. Instead of swinging a Louisville Slugger, you're going to use a credit card to get yourself out of a jam.

The German philosopher, Friederich Nietzsche, said, "What doesn't kill us makes us stronger." In the case of bad credit, your low credit score and shrinking financial options has shown you how not to handle your finances.

Believe it or not, a great tool to help you repair your bad credit is a credit card. Not a card with a gargantuan limit, but one with a sensible line to help you reestablish your score. If you choose this route, here are some tips to follow:

1. Start slow and low

Rome wasn't built in a day, and your credit score isn't going to be rebuilt in 24 hours, either. Rationally, you understand how you got yourself into deep trouble. But you may not have reformed yourself completely when it comes to your spending habits. When you apply for a new credit card, get one with a low credit limit to keep yourself out of trouble.

2. Try a retail card

There are plenty of stores that would be happy to arm you with a credit line. Retail cards are a good place to begin. Once a major credit card company sees that you can maintain a credit line with a retail card, they'll be more likely to extend a new line to you down the road. Just be careful to pay your entire balance every month.

3. Limit your applications

Credit bureaus are sensitive to consumers who apply for a variety of different cards. It's an indicator that you haven't been able to curb your bad credit habits, and that you're desperately in search of more credit. Instead, try doing plenty of upfront research, and only apply for one or two cards.

4. Secure a line yourself

If you want to send a strong message to credit agencies, take out a secured credit card line using your own money. For example, put down $1,000, and secure your own credit card. Even though you're really spending your own money, it's an indication to credit bureaus that you can responsibly make monthly payments.

5. Find a co-signer

If you're ready to turn the corner and start spending responsibly, ask a friend or family member to co-sign for a credit card. Please take caution with this step, however. If your credit score heads south, it's not just you who'll wind up getting hurt. You'll drag your co-signer through the muck, as well.

If your credit score has tanked, you doubtlessly feel like you've been dealt a serious blow. But that sock to the ego doesn't have to be a fatal wound. If it hasn't killed you, let the financial lesson make you stronger-and smarter, too.