Secured charge cards and how to get them

When it’s time to apply for a vehicle loan or home mortgage, it helps to have a good credit score. If you do not, you will find credit repair steps you are able to take. Despite the potentially high upfront cost, using a secured charge card can help increase your FICO score. Here are some things to consider before applying for a secured credit card.

How to work a secured credit card

Make sure you’ve an active savings account if you want to apply for a secured credit card. The secured credit will have a limit typically of the amount that is in the savings account. It could be smaller though. If you’re 30 to 60 days delinquent, the money could be taken out by the card issuer. An option for an unsecured credit card with no collateral requirement will likely become available after bills on the secured credit card have been paid for six moneys to a year on time due to the recovery of a credit score.

Credit bureau requires report

The card won't help you at all if your secured charge card issuer isn't reporting it to major credit reporting agencies. Making payments on time is very important to credit. It will rebuild your credit easily. You will want to shop around for an excellent secured charge card since interest rates and grace periods can be on there too. If you need to compare your purchasing, try bankrate.com. You will be closer to repairing your credit with a savings account that earns some interest.

Spending and charges

2 major however often unavoidable drawbacks to secured charge cards are upfront and annual fees. Ideally, you will not need a secured charge card for long, so the annual fee will not hurt much, but the upfront fees can exceed $100 or more. The credit rating would determine the eligibility for a card with no upfront charges although they are accessible.

In terms of usage, try not to use a secured credit card more than you are able to manage each month. You will want to spend less than 30 percent of the credit limit every month while paying the balance every month in full can help.

Citations

Bank Rate

bankrate.com/funnel/credit-cards/credit-card-results.aspx?classificationuid=13&childcategoryid=837&childcategory=Secured%20Cards

Fox Business

foxbusiness.com/personal-finance/2011/02/22/secured-credit-cards-6-tips-applying-using/

Rebuilding credit can be an expensive path

youtube.com/watch?v=kSHKw3-5Ne0