Bad Credit? How Charge Cards Can Help Rebuild Your Rating

If you have bad credit, credit cards can help you rebuild your credit rating. Credit cards can be used to help you get out of debt trouble as much as they are used to get you into debt. Here are a few ways that a charge card can help you rebuild your credit. 

Credit Bureau Reports

The entities that control your credit score are the major credit bureaus. If you want to rebuild your credit score, you need to do something that gets reported to the major credit bureaus. If not, they will never know that you are trying to fix the problem. You need to be involved with a company that will report to the bureaus and credit card companies do exactly that. 

Regular Payments

By making a regular payment on your credit cards, you will improve your score. The formula that creates your credit score relies heavily on your ability to make steady payments. In fact, as much as 35% of your score has to do with whether or not you make frequent payments.

Therefore, if you can get in the habit of making a regular payment to your credit card company, it will go a long way towards increasing your score. The credit bureaus will start to believe that you can be trusted to make regular payments again and will slowly start to bump up your score.


When you have a credit card, your card has a maximum limit that you can spend up to. Although you have a spending limit, this does not mean that you should try and get near it. Many people make the mistake of thinking that they need to buy as much as they can fit onto the card. If you do not do this, it shows restraint on your part. The credit bureaus will notice this and start to trust you again. 

If you can keep the balance on your card to below 30% of the maximum limit, then you will be in good shape. This is the magic number that credit bureaus look for to determine if you are overextending yourself. Keeping yourself from maxing out your cards is a big step in your financial life. If you can do this on a consistent basis, the credit bureaus will slowly start to increase your score. 


The main thing that the credit bureaus want to see is consistency. They want to know that you can be trusted with credit again and you know how to handle your money. If you do this for a few years and then fall back into your old habits again, it will do you no good. You have to make a decision that you will no longer do the things that got you into trouble. A credit card is simply the tool that you use to prove your decision. 

Improve Your Credit Score - Free Consultation