Success Story: Nancy Gets Her Credit Back on Track. And You Can, Too.

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Evans knew that one way to rebuild her credit was with a secured card, but she decided to take a more local approach. She approached a nearby credit union and asked them if they would give her a secured loan. They did, and she was able to get a loan for the same amount as she deposited with them.

After 4 months of paying that loan on time, she and I discussed her next step. I recommended the Orchard Bank credit card because applicants may be offered a secured card or an unsecured card, depending on their credit qualifications. She applied and received a low balance unsecured card, which she also managed carefully.

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Last month, she was able to get a traditional unsecured card. “I was pleasantly surprised,” she says. “I went with the one that has gas and groceries rewards, though it’s scary to me when people use their cards for those types of purchases.” She knows that using credit cards to pay groceries can be risky if you don’t pay the balance in full and is careful to keep her balances low this time around, and to pay them in full.

Evans is now focused on monitoring her credit reports and scores. One of her credit reports shows no negative information, but she’s still working on getting the others straightened out. She finds the process frustrating. “I have a better than average understanding of how it works, but I still have trouble getting things corrected. I can only imagine to someone who has no clue whatsoever how frustrating it must be.” Nevertheless, with a good grip on her spending, and credit scores that are improving, she’s on her way.

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And she hopes her experience will help her clients avoid the same mistakes. “I assist people in finding a way to meet all their needs, now and in the future. It’s got nothing to do with the amount of money,” she observes. “It’s knowing where it’s going and spending it on what you really need.”

What can you learn from Nancy’s experience?

1. It takes credit to rebuild credit. If you hope to make any purchases in the future involving credit (such as buying a car), you will need to demonstrate that you can handle credit responsibly now. You’ll need credit references to do that.

2. A secured card can be one of the easiest ways to reestablish your credit. Once you have one of these cards under your belt for at least six months, you may want to test the waters to find out whether you qualify for an unsecured card.

3. Before you focus on building credit, make sure you have a solid spending plan, and that you are saving for short and long-term goals. Otherwise, you could find yourself back where you were before your credit crisis.

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