Rebuiling Your Bad Credit With Secured Credit

Secured credit cards can rebuild your bad credit only if you
show a historical improvement to your payment history. A
secured credit card is one that is prepaid; as long as you
maintain a positive balance then a positive history is created.

Can a credit card improve bad credit? Can something inherently
bad become something good? However, the consensus of most
honest financial advisors is that debt is a disease. An ongoing
radio commercial announced that credit card debt is the third
largest debt growth area amongst Americans. It states that the
average credit card debt is $10,000. Apparently Americans have
a serious disease and it is not getting better. Some
advertisements promise debt consolidation, whereby a large
amount of credit card debt from many credit cards are rolled
into one credit card debt. The only improvement is that there
is one address to send monthly payments.

There is nothing really good about debt. Americans have been
convinced by retail salesmen and the banks that to have good
credit one must have a solid credit history through credit
cards or credit accounts. A solid history means more than the
fact that you have consistently made payments on time without
failure. The credit card companies and the banks evaluate your
spending tends, the debt load over time, your savings history,
checking deposit history and actual check spending history.
This personal information is felt by these institutions to be
proprietary, belonging to the institution because of their
unique methods of collection, rather than belonging to the
individual who creates this activity. Debt is bad because it
gives total strangers control over your life. It teaches you
that spending all of your cash assets is fine, there is no
limit or bounds to spending, it is acceptable to owe vastly
more money than you make or will ever make.

A credit card, if it is the only credit card you possess, could
start improving a portion of bad debt only if you liquidate your
current debt in a steady, reliable manner. This will only show a
history of reliable payment. As I have already stated banks and
credit card companies are not interested only in your
reliability, they want the "juice" off of the advanced credit
you have obtained. This means they only want you if they can
get their interest in a regular and steady manner.

This is not the same as pay your debt regularly until it
vanishes. They want you to remain indebted permanently but
repaying them in a timely manner. If you are debt free you may
not be judged to be a good credit risk. This is the state that
underage children and young adults find themselves whenever
they attempt to secure a credit card. Simply stated, good
credit doesn't mean what it did just fourteen years ago. The
protections afforded the consumer since the Depression of 1929
no longer exist.

The Financial Laws passed through Congress in 1992 allowed
banks, insurance companies (especially health insurance
companies) investment firms to handle banking, insurance and
investment operations. Laws passed after 1929 had prevented
banks from insurance and direct stock exchange trading,
likewise insurance companies could not pursue banking
operations or stock exchange nor could stock exchange companies
pursue insurance or banking operations. This freedom was granted
without the subsequent protections of the consumer included in
these new laws. There currently exists no single body of
consumer law. The private citizen must fight the triumvirate of
bank,insurance and stock exchange through the court system for
his own right to privacy. Remember a credit card is not the way
to improve bad credit; it is a quick way to obtain bad credit!

About The Author: Joe Kenny writes for the UK personal finance
sites http://www.ukpersonalloanstore.co.uk and also
http://www.cardguide.co.uk

Article Source: http://www.hostcontent.net

Article Title: Rebuiling Your Bad Credit With Secured Credit Cards Author: Joseph Kenny Word Count: 618 Article URL: www.isnare.com/?aid=75990&ca=Finances Format: 64cpl Author's Email Address: info[at]insure121.com (replace [at] with @) Easy Publish Tool: www.isnare.com/html.php?aid=75990

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