Using Secured Credit Cards to Rebuild Your Credit!
We’re living in a world, where everything is on credit; thus, you can make your lifestyle up to the mark, only with a robust credit score.
But, wait a second!
What if your score isn’t as great as you expected it to be?
You no longer have to worry! Because, we have a solution for you!
Secured Credit Cards: The Ultimate Lifesaver.
In this article, we are going to explore – why secure credit card are perfect for you when you’re in the phase of rebuilding your credit.
Also, stick around till the end, because we’ll also explore:
- How secured credit cards work?
- Why are they an excellent choice for credit repair? And,
- How to use them effectively to rebuild your credit?
So, Let’s dive in!
How to Build Credit with Secured Credit Cards?
For those of you, looking to rebuild their credit! Trust us, Secured Credit Cards could be your most powerful tool…… How?
Because, it’s different from those traditional credit cards in terms of security deposit. Now, how is that going to help you?
Well, this collateral will act as a safety net for your lender. For some reason, if you fail to pay your bills on time, the lender, instead of ruining your credit score, will simply take back his due amount from the secured cash.
It is different from debit cards in so many ways: Just like, your credit history will be reported to the three bureau agencies- Equifax, TransUnion and Experian. That will help you to build your credit history over time.
How Long a Secured Credit Card Takes to Build Credit?
Well, we can’t give you an absolute time frame to improve your credit, but we believe that using a secured card can relatively boost your credit score — probably, “within six months.”
Not only that, it will also help you to graduate to an unsecured credit card in the next 6 to 12 months with on time payments.
Avail of the Benefits of a Secured Credit Card!
Building Credit History:
Secured credit cards help you to build your credit history in a most secured manner. It’s your best chance to show the lender that you’re a reliable borrower.
Increased Credit Score:
If you are consistent in making timely payments, and maintaining low credit utilization; this practice will help you to improve your credit score steadily.
Access to Credit:
Secured credit cards will help you to access credit ;with which you can make purchases , rent a car, or book an apartment.
Finding the Right Secured Credit Card
Your goal shouldn’t be simply building credit but keep your eye on building “Good Credit Score”. And you can only make that possible by keeping the following factors in mind:
- Annual Fees
- Interest Rates
- The Reporting Practices of the Card Issuer
Always look for the cards that will report your payment history to all three major credit bureaus; this is how you can be sure that all your efforts are reflected in black and white.
How to Build History with your Secured Credit Card!
Try to make manageable purchases that you know; you can easily pay off every month. With hefty purchase, you’ll again fall in that trap- “Late Payments”. That will ultimately defeat the purpose of using a secured card.
Most of the time people make minimum payments on credit balances. Instead of that, if you develop a habit of paying your credit card balance in full, you can easily avoid accumulated payments.
Aim to keep your credit utilization below 30%. It’s basically the ratio of your credit card balance to your credit limit.
Graduating to an Unsecured Card
Now, the most important part for the beginners! Yes, we are going to discuss your eligibility for unsecured cards.
Once you are consistent with your payments and demonstrate responsible credit behavior to your lender; you are good to get an unsecured credit card. Which means, you no longer have to deposit a security amount and also negotiate favorable interest rates with the lender.
Monitoring Your Progress
Regularly Check Your Credit Reports:
Track your progress by reviewing your credit report at least twice a year. Look for inaccuracies if any- and raise a dispute if they are needed to be addressed.
Consider Credit Repair Services:
Although — it’s inquisitive but it’s not easy to handle a credit repair process on your own. If you are stuck with a bad credit score- count on reputable credit repair services. They have a professional team to guide you throughout the process!
Patience is the Key to Success
No matter if you’re just a beginner or trying to repair your credit – a secured credit card is one of the most powerful tools you can have at your disposal. You’ll just have to deposit a specific amount with the financial institution and they’ll give you a credit line.
You’ll always have the option to cancel or upgrade your credit card to an unsecured one and get your deposit back. However, if you are facing any difficulties in establishing your credit history- do count on Credit Max Solution. Get a customized plan today to improve your credit score. Call us at 888-660-0641 or email us at: Info@creditmaxsolutions.com to get a FREE credit evaluation online.