Businesses evaluate individual credit applications by rating or measuring how a person has handled credit over the past seven years but often consider information from the past one to three years more important than older information. If you have a low credit rating you can improve it by adding new, positive information to your credit report, which will help you qualify for additional credit in the future.

Repaying debt and/or obtaining and using a secured credit card are effective ways to start rebuilding your credit rating.  A secured credit card is backed by money that you leave on deposit so that if you don't make a payment each month, the creditor or bank is paid from the deposit.

Every time you make a payment on time and in full, you build a record that will improve your credit rating. If repayment is a problem, then use your credit card only for a set amount that you know you can pay.  This may mean that you start using the credit card for $10 each month and increase the amount when you are able.

Before you apply for a secured credit card, shop around to find the best deal by asking the following questions:

Q:			What are the basic terms and conditions, i.e., annual interest rate, annual fee, late and cash advance fees?
			Is credit extended to people with low credit ratings?
			Can you qualify if you have declared bankruptcy in the past?
			Will your payment history be reported to all three credit-rating agencies?
			What interest rate will be paid on your deposit?
			What will your credit limit be? What will your credit limit be?
			How long will it take to qualify for an unsecured credit card?

Tips for Working with Outstanding Debt Know how much you owe and what you are able to pay each month. Prioritize your debts and pay what is most important or has the highest interest rate. Don't ignore creditors or unpaid bills. Work with creditors to reduce your monthly payments to a more manageable level. Consolidate all your debts into one loan.

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