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lmc41472

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How do I start improving my credit when I can't afford a $200+ deposit for an unsecured credit card?
I made so many mistakes in my 20's that I'm embarrassed to even admit it, but after recently viewing my yearly reports I discovered that all of the credit cards I was so frivolous with in my younger years are no longer appearing on my report. I'm assuming the 7 year period passed for all of them? I currently have 1 charge off and 3 small accounts in collection (all but one are medical bills). My student loans are in good standing. I guess I'm just stumped as to what I can do now to boost my score. Any advice? Where do I go from here?

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No cash for secured card deposit

Helpful to 2 out of 2 people

a credit card might not be a good idea for you - if you cant afford the deposit on a secured card - you might not be able to afford the payments. if your are set on a credit card you have 2 choices- number 1 save a few dollars every week until you have enough for the deposit ( which i would recommend ) or - number 2 find an unsecured card ( they will have high fees but after some ontime payments 6 to 12 months you should be able to show a payment history that would get you a better card with less or no fees.  

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**secured credit card

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where to go

wait for all the bad debt to drop or make arrangemnts to pay them off. make all payments on time, and medical bills pay a little on each. the mean mistake people make is getting into to much debt. if you can't afford a $200 deposit you won't be able to pay back the debt. the key is save, save what you can and build a nest egg. you only need good credit to buy two things in life anf that is a home and a car. all the other things people put themselves in debt for should be paid for with cash.

and as far as a deposit on a credit card as long as you pay on time you get the deposit back. the money is yours and it is a secured deposit limit of your own money. but you will be bill for the interest if you do not make your payments on time in full. when you pay the minuimn you pay interest on what is owed, and who has money to throw away.

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Thanks for your advice! I can afford to pay a payment of around $50 per month, but with 2 kids it becomes difficult to get $200 or more at one time for a deposit. Maybe I'll just start putting back little by little into my savings until I have enough for that and then go for it. Outside of a credit card I really don't know of anything else I can do to get some good things going on my report. Loans are out of the question because no one is going to approve me for that without a cosigner and I have no one to cosign for even a small personal loan. 

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