Clark Howard: How To Rebuild Credit History

ATLANTA,None — The credit card act of 2009 stopped some credit card tricks, but Channel 2 consumer adviser Clark Howard says many companies are still finding a way to make money. The details are all there, buried in the fine print of credit card offers.

In one week, David Block received four invitations to open new credit card accounts. Block had credit trouble in the past and wanted to rebuild his credit score. He has been amazed at some of the credit card offers he's received.

Block recalled one specific offer: "It was charging a 59.9 annual percentage rate, and in addition to that 59.9 percent interest, there was also a $75 annual fee and other fees attached to it as well."

Here's Clark Howard's advice to safely rebuilding a credit score: First, read the tiny print on the terms of any offer, don't just look at the shiny flier.

Second, if you can't find a regular card with reasonable terms, look at secured credit cards. Clark says the best ones report to the three credit bureaus monthly. and will convert to an unsecured card after 12 to months of on-time payments.

A third option: Go to a credit union. Many credit unions will offer customers a loan against money they put in savings. Customers are borrowing against themselves, but it helps build a new credit record.