Using a Secured Credit Card to Build or Re-Build your Credit Rating
A strong credit rating is important, no matter where you are at in your life. If financial troubles have left your credit rating scarred with late payments or maxed out balances, once you get those factors corrected, you will want to think about rebuilding your credit history.
Consumers who either are ready to rebuild their credit, or who may need to establish a credit history, may find that a secured credit card is the way to go. A secured credit card is often referred to as a bank secured card, but it's actually your deposit that secures the line of credit.
Apply For A Secured Credit Card
If you are interested in applying for a secured credit card, then click on the banner below.
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If you are interested in learning more about bank secured credit card offers, then read the document below.
Step One: Pick your Secured Credit Card Application
Pick your secured credit card carefully, reviewing for factors such as interest rate, annual fees, start up fees, transaction or 'participation' fees, late and over limit fee amounts. Remember that even though secured cards are based upon your cash deposit, they are a line of credit and you will be charged interest on any balance you carry from month to month, so carefully consider the interest rate before you open the secured card. Chances are you will not see prime rates offered on secured cards, but rates should not go over 20%. Review the card member agreement carefully for the default interest rate, and be aware of what you need to do to avoid triggering the higher rate amounts.
Step Two: Make a Deposit to your Secured Credit Card
To establish a secured credit card you will make a deposit into a savings account with the issuing bank. The minimum deposit amount is set by the creditor and can be anywhere between $250.00 to $500.00. Once your security deposit is applied and your credit application is approved, you will then be granted a line of revolving credit equal to your deposit by the bank offering the secured card.
Secured Credit Cards
Step Three: Pay your Bill on Time
Once you have selected your card, made your deposit and activated your line of credit, your next step is to use the card responsibly, in a way which will help to build your credit history. Your payment history is a large part of what makes up your credit score, and consistent payments will be a big part of improving your credit history.
Automatic bill payments can be a good way to ensure you establish a record of consistent payments without the constant temptation of carrying a card in your wallet. Simply set up the automatic payment of one monthly bill, say for a gym membership or your phone bill, and pay the credit card bill in full each month as your statement arrives. Store the card in a safe place, not your purse or pocket, once you set up your automatic payment to prevent against the temptation to spend part of your newly obtained credit line on impulse purchases. Month after month, your consistent use and payment on the line of credit will help improve your credit rating.
As with any line of credit, it is important to carefully review your credit card statement every month; ensure all of the charges are yours and that fees or changes in the interest rate don't appear without any explanation. Of course, you always want to ensure your account is current, with no past due amount. It is also important that the balance of the card does not eat up your entire available line of credit.
Finally, another key factor to improving your credit is to live within a carefully balanced budget. Be aware of where all of your money is going each month, carefully track all of your expenses and be sure to allocate some funds each month for emergency savings.
To apply for a secured credit card, visit this page: Secured Credit Card OffersNote: CreditCardMall.com provides safe credit card application (s) that go direct to the bank services. We are the #1 online source to compare credit card offers. All credit card applications are hosted on the individual banks secured web servers. We make every attempt to assure that all the information on our website is up to date and accurate, but we make no guarantee. We have it all at CreditCardMall.com! Tell a frend to apply online for a credit card online at CreditCardMall.com. Bookmark our site for future reference.
