Secured Credit Card
A basic in the credit building game is a secured credit card. A real Master Card or Visa card which reports to the credit bureaus is a valuable tool at repairing or simply establishing credit. Virtually everyone who applies is approved, after all you are fronting the whole amount of your credit line as a deposit to the bank as security for the credit line. There is no need to get a large line, after all it isn’t about the credit line, it is about the fact you paid a traditional credit item on time this month, and next, and next, and so on. Charge a gallon of milk, or lunch next Tuesday on it, that is it for the month, when you get home, write a check for the whole purchase and mail it right then. You want it to be paid on time. You don’t want to charge to much on the card, since you are working to improve your score and once that card has more than 10% of it’s available credit used, you will start to lose some value for it.
Where do you get a secured credit card? I have found the following, Orchard Bank and think what they offer to be one of the best options. Sure it won’t be free, but some of the offers I’ve seen for secured cards should be illegal. You could also check with your credit union if you are a member. I’ve seen them offer secured credit cards, but make sure they report to the credit bureaus. Many credit unions do not, or only report to one bureau I’ve found. Ask before you go that route and find out what you did to improve things didn’t really help.
A secured card isn’t an instant fix, give it a few months, 6-12 and you will start seeing the benefits. MAKE SURE TO PAY IT ON TIME EACH MONTH or you are just wasting your time.
Check out these other posts on GetMeApprovedToday, 6 Ways A Low Credit Score Can Cost You, and I Have Errors On My Credit Report Now What?
