• Aditya Bagaria

What if my credit score is bad?

Mistakes happen. We get it. Sometimes you just can’t make that payment, or worse, forget it. Don’t worry as there are still ways to get out!

You should apply for a secured credit card such as the Discover It Secured credit card. This is a credit card that functions similarly to a debit card. You have to put down a cash deposit and you won’t earn points or miles. If you spend at restaurants and gas stations, you will get 2% back up to the first $1,000 spent. It is 1% on all other purchases. While this isn’t ideal, you are building up your credit so you can apply for higher-value cards in the near future. Be patient! If you don’t get approved, don’t apply multiple times as that can have a negative impact. If you are in this situation, get a free copy of your credit report and figure out what is holding your score down. You may be a victim of identity theft or fraudulent behavior against you.

One of the most frequent demographic that have low credit scores is those who just turn 18. I advise parents to add their kids as authorized users as soon as you feel comfortable. After they turn 18, kids should apply for a secured credit card to build credit. The bank may ask you to guarantee the credit card, but that shouldn’t be an issue. It won’t be long before your kids will buy their first house or first car. And having a good credit score (many don’t!) at that time is extremely valuable.