Many people with seriously bruised credit are unaware that their low credit scores may be due in large part to a lack of active credit history rather than because of the derogatory entries or public filings on their credit reports.  Ignore your credit and it will go away.  Inactivity will also result in credit scores dropping to zero.  (Please ask me about my Emerging Market programs, available to those with scoreless credit profiles, before applying for any credit cards or installment loans.)

Furthermore, paying cash (or using your debit card instead of a credit card) does absolutely nothing to prove to the world your creditworthiness.  Responsible use of revolving credit (e.g., credit cards) helps to build character ... and an indelible credit history.

I recommended that prospective home buyers maintain at least two major credit card tradelines and two minor credit card tradelines.  Installment loan tradelines, such as an auto loan or lease, will suffice as suitable replacements -- provided that they report to a major credit repository.  To qualify for the best mortgage programs, it is advisable that you have five or more tradelines that have been open and active for at least two years.

Credit cards, when used responsibly, will raise your credit scores and improve your ability to qualify for better mortgage rates and terms.  Below are several credit cards that I have pre-screened for their overall value and effectiveness.

BRUISED CREDIT

For those with seriously bruised credit, the only credit cards available are "secured" credit cards.  These will require you to deposit $300 or more in an account to secure your proposed revolving credit line.  The initial fees will be high, so pay them down a quickly as possible to free up the entire credit line.  If you use the credit card responsibly for the first year, your deposit will either be returned to you or your credit limit will be increased.  Please refer to my Credit Restoration page for more information on other ways to improve your credit or dispute errors on your credit report.

An unsecured card for those with poor credit ...


A secured card for those with bad credit ...


 

GOOD CREDIT

For those with good credit, I have selected several popular cards that offer attractive start rates and incentives.  Feel free to transfer your balances from other cards, but make certain that you ask for a credit limit at least twice that of the amount you intend to transfer.

Low fixed rate Visa/MC card for those with stellar credit ...


Low fixed rate Visa card for those with stellar credit ...


My favorite AmEx Business card ...


My favorite personal AmEx card ...


My favorite Discover cards ...



And for the Java Junkies ...