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How To Improve Your Credit Even if You've Been Denied a Credit Card or Bank Acco

n this day and age where most people have easy
access to a consumer credit, Americans are
finding themselves sinking deeper and deeper into
debt. Racking up a mere ,000 in debt is now
easy and all too common.

As being the pressures of mounting consumer debt
becomes an issue for more and more people, the
demand for legitimate and proven ways to rebuild
your credit history is on the rise. The word "
budget" conjures up extreme images of depriving
oneself of the foods one likes or more extreme
visions of starving oneself pop up. However, a
proven formula for debt management and the
rebuilding personal credit and credit scores
using a specific type of credit card dispels such
visions.

Not only are these credit cards beneficial, they
also provide for some consumers the only way out,
especially if they've been denied a bank account
or traditional credit card. Given that it takes
two incomes in most households and a great
majority of men and women both are in the
workforce these days, there is hardly any time to
prepare budgets and investigate ways to increase
their credit scores.

They say a journey of a thousand miles starts
with the first step. Let's take our first step
and evaluate both secured and pre-paid credit
cards and the pros and cons of each for your
situation.

Secured Credit Cards

Pros - Opening a secured credit card account is a
simple and affordable way to start building your
credit. Secured credit cards will also help you
improve and rebuild damaged credit. These cards
are used exactly like a standard run of the mill
credit cards you are familiar with.

Cons - One of the major drawbacks to this type of
card is that to secure the card you must put down
a 0 to 0 deposit with your application. For
many this may be a tuff requirement. These cards
also tend to have much higher interest rates (15%
or higher) and additional charges such as an
annual fee (usually around ). Despite these
drawbacks, for many looking to rebuild their
credit, these cards make sense.

Pre-Paid Credit Cards

Pros- Pre-Paid Credit Cards can be a great tool
because they provide you with the freedom and
flexibility of using your own cash. These cards
look like real credit cards and can be used for
just about any situation that requires a credit
card. Instead of granting you a credit limit
based on your financial standing, these accounts
require you to "load" the card with your own
money. Yeah, real cash. Approval for this type of
card is easy and almost guaranteed, even if you
have credit problems.

Cons - If you are looking to rebuild or establish
your credit however, beware. These cards may not
report your repayment history to the credit
bureaus. If the creditor does not report your
account, this type of account will not help you
improve your credit. By carefully selecting these
cards, you can assure yourself that you receive
the most bangs for your proverbial buck.

You might also consider that Pre-paid cards
cannot be used in all situations. For example:
hotels and car rental agencies may not allow you
to use a pre-paid credit card to secure your
rentals. It's always a good idea to call ahead
first and ask each company their policy before
entering into any transaction.
About the Author
Brian Stephenson is the President of http://www.
AccountNowReview.com a credit and debt product
review company based in Houston, Texas.