(Franklin Debt Relief is not a credit repair organization and the following is for informational purposes only).

If you are a consumer suffering from bad credit, then you already know that obtaining new credit cards can be a very difficult task. Or, you may be a consumer who has just completed a debt relief program and need to get back on the right track. For one, the majority of lenders shy away from granting credit cards to consumers who are in debt and have demonstrated that making their payments hasn’t been an easy accomplishment in the past. In addition, for consumers with a bad credit history, battling outrageously high APR rates can be a daunting task in itself. For consumers who fall under theses circumstances, as well as consumers who have no checking or savings account and are struggling to open up new lines of credit, there is still a means to do so.

The first step is to understand how to start improving your credit so you are deemed reliable in the eyes of the lenders. How do you do that? Open up new lines of credit and make your payments. While you may be struggling to find lenders who will grant you credit cards, it is not an impossible task. Department store cards and gas cards are a good way to get your foot back in the door and start rebuilding your credit. Typically, consumers with bad credit or no bank account find it is easier to open up these types of accounts with a lender. It is important to remember that your new credit lines and types of credit used account for 20% of your credit score. Simply making your payments on time and having a new variety of credit cards will inevitably improve your credit score on some level over time. In addition, the length of your credit history makes up an additional 15% of your credit score. Making your payments as time goes along will benefit you in the long run due to that factor. But you must remain responsible with these new credit cards and not fall back into debt. Furthermore, department store and gas cards aren’t your only option.

Pre-loaded credit cards are accessible for consumers with no bank account or consumers who are suffering from bad credit history. A pre-loaded credit card is a credit card whose maximum limit is set at the time you are granted the card. This is a great way to control how much you spend while having a chance to start rebuilding a positive line of credit. The consumer can set the limit of the card and make a pre-payment to the lender to insure that the limit is fixed. While there are some exceptions, pre-loaded credit cards offer you similar benefits and rewards as traditional credit cards and usually allow you to access the money from an ATM account. In a base case scenario, apply for a pre-loaded credit card with low APR rates and no annual fees.