Individuals with bad credit are often desperate to be approved for a credit card, and banks that make special provisions for those with less than perfect credit to be approved for credit cards are aware of consumers’ eagerness. This is why many of them charge a great deal of unnecessary fees—because they know that these individuals will pay them just to be able to have a credit card. Many credit card companies charge consumers outrageous “set-up” fees, participation fees, extremely high interest rates, and also, fees as high as $50 or more, just to receive a credit limit increase. In order for your credit score to rise rapidly with the help of a credit card, the credit card company needs to report to all 3 major credit bureaus. Most banks only report to one credit bureau of their choice. So, if you’re in the market for a new credit card to help improve your overall credit score, it’s a good idea to call the bank before even applying, to ensure that they report to all three agencies: Equifax, Experian, and Transunion. The high fees coupled with the fact that many only report to a single credit reporting agency may cause you to change your mind about accepting a certain credit card offer.

One alternative to the astronomically high fees associated with credit cards for those with derogatory credit is to simply pay off some of the debt that you already have. You won’t believe how quickly your score will shoot up by doing this. Even though the item will still appear on your credit report, the appearance of “paid” and “charge-off” or “90 days past due” make a huge difference. Merely paying off one or two accounts could increase your score enough to be able to be approved for a mortgage or a car. If you can’t pay off all the past due accounts at once, many creditors would be happy to accept reasonable arrangements. They want to be paid, so if they see that you are willing to comply, then most will be pretty flexible with pay-off terms. Some will even accept settlements, and you may get away with paying as little as half of what you actually owe, yet it will be considered paid-in-full.

No matter which methods you choose in order to improve your credit rating, it can be done. You will be better off in the long run by thoroughly researching whichever route you choose to go before committing to anything that you can’t easily get out of later. Good credit it right around the corner, and you just have to work hard at getting it that way. In the end, when you are able to easily qualify to purchase your dream home or car, you will realize that all your hard work and persistence was worth it.