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Good Credit - The Credit formula has TWO P's "Purchasing Power"

Bad Credit - The Bad Credit formula has THREE P's "Poor Purchasing Power"

If  you have bad credit, you can still manage to get a credit card. Be prepared to pay more for every borrowed dollar. On the other hand, if managed properly it can assist you in rebuilding your credit line and credit history.

You may not have bad credit, you just don't have good credit. You may be establishing credit (student loans) while others are on the comeback trail to re-establishing good credit.

Sometimes, credit unions offer the good deals for people with damaged credit.

People with spotless credit reports obviously get the best deals. In most cases you will find that your rates, fees, penalties, charges and credit limits ($500) are reasonable.

OJO: Credit Card companies don't just look at your payment history, bad balance, late payments, against the good point, like steady jobs and long-time residency.

Keep paying off non-credit-card bills. There's little point in paying off your new credit card if you fail to pay a mortgage, utility bill or car payment.

Don't apply to for every credit card - too many applications creditors (they can find out how many times you've applied for credit), especially if your credit is tarnished.

Ask a relative to co-sign for a credit card if you have trouble getting one yourself. If you mess up, be prepared to loose their love and friendship with you.
 
New Options: You may consider a bank secured Mastercard. With a secured Mastercard you put your own money (savings account) and that amount is the credit line for your mastercard. Put in $5,000 and you have up to a $5,000 credit line.

Consumer Credit Counseling Services CCCS

If you ever decide enter a debt management program, It's important to utilize well known and trusted programs by Consumer Credit Counseling Services. They offer the best and cheapest options, and you'll avoid getting ripped off by so-called credit repair companies. You can work with CCCS online, over the phone, or in person.

If you do decide you want to negotiate some sort of pay-off deal with these credit card companies, I encourage you to contact CCCS first for a free budget counseling session. CCCS can help guide you as to the best way to negotiate a compromise, and can show you how this will affect your credit and your finances.

If you earn $70,000 per year and are $70,000 in debt, you're at the break even point where it may makes sense to declare bankruptcy and clean your financial situation. Even if you have to pay some of the debt back to get out of bankruptcy, filing will put all of your debts into one basket and get you on a faster track to improving your credit history.

If you earn $100,000 per year and have $50,000 in debt, you should be able to get yourself into a debt management program and pay off the debt in three to four years. That process will also help you rebuild your credit history and score. And, you'll avoid that nasty bill from Uncle Sam.