I’m Repairing My Credit, But Need A New Loan – What Is Best For Me to Do?

Hello, I was wondering… I need $3,000 and wanted to apply for a credit card. I have two cards right now, but the limits are only $300.00. I pay them on time but in the past years my credit was horrible. My score is still only in the 500s. What card do you know of that will give me a high limit and fast?

Thank you,


Hi there, Kristy. Unfortunately, the simple answer is that this won’t happen that quickly. When your credit score is in the 500s, you’re going to have a hard time getting a credit line, much less getting a credit line of the size you’re talking about. However, there are some ways to work this out for the future, some things you can do right now, and some things to keep in mind.

Rebuild Your Credit

The first thing you need to do is rebuild your credit (here are some great tips). That should take precedence over everything else you’re doing. Since things that are already on your credit report fall off after seven years, it’s a good idea to get a credit report and see what’s really on it. It’s possible that there are things on your credit report that don’t belong there, are over seven years old, or just are wrong. You can dispute incorrect reports to the credit bureau (Find out how here). You can make a calendar of things that are coming off your report in a certain time frame. For that, get a free credit report and comb over it line by line. Make notes as to when certain items come off, and then take a look at things that may be erroneous.

If there are things on there that you feel you can take care of, you can get the creditor to mark the debt as paid (improving your score) when you handle it. It’s the simplest way to take care of items on your credit report, but it’s also the most expensive. You will have to do some investigation to figure out where any erroneous items came from, and there may even be things on your credit report that don’t belong to you. It’s worth it to notify the credit bureau in writing (they like it better that way) to alert them of incorrect submissions on your report.

Otherwise, you’ve got to pay things on time, and be aware of the policies that govern the late payment reporting for each of the debts you currently have.

You May Want To Borrow From Someone

If you need money fast, it’s never a bad idea to ask family and friends for a loan. They’re the most likely people to offer the money, the most likely to be generous, and the least likely to demand to have their money in a certain term. No one likes asking for a loan from a friend or a family member, but there are much less savory ways to get a loan, and those less-savory ways involve interest and amortization schedules.

There Are Cards That Can Help

There are actually quite a few cards that are targeted at people like who are looking to repair and rebuild credit. Orchard Bank offers credit building cards that may not offer the credit line you’re looking for, but they will have a pretty simple application process and easy approval. Again, it may not be the credit line you’re looking for, but maybe you could combine the credit line they offer with the loans you procure from family and friends. Orchard Bank lets you choose from the Classic Card and the online EcoSmart card. Each one is good for those who are trying to rebuild their credit, and the EcoSmart card allows you to earn rewards. Not a bad deal considering we don’t want to be too choosy when trying to figure out how to get the cash you need. Other issuers include First Premier, Capital One and many folks use store cards and even gas cards for that purpose. (Here is a rather comprehensive list of present and discontinued subprime cards

There are secured credit cards (the require a deposit) from banks like Capital One, Orchard Bank, and First Premier that all offer the same opportunity (rebuilding your credit.) There are also smaller and lesser-known banks that offered secured cards (including many credit unions). Again, these cards may not offer the credit line you’re looking for, but rebuilding your credit is far more important that band-aiding this problem only to have to band-aid again at a later date (which would not be very much fun). Here is a list you might want to check out.

Maybe A New/Different Job Is In Order

Now, this is going to sound a little “uppity” because this isn’t exactly the economy to go around just looking for a new job on a whim. However, there may be a better job around the corner that would pay better, or something that you can do part-time that will garner you a little extra cash. There’s also work on the internet that pays well, and you could squeeze that in around your already crazy hours at work. Again, we want you to have every option possible so that you can solve your problem.

There’s nothing that’s going to raise your potential credit lines overnight, but a loan to hold you over from a friend, some credit rebuilding, and some extra cash from maybe a part time job would go a long way. That’s definitely more than a band aid–and it will stand the test of time when your credit is improved.

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