When it comes to credit cards, there are three different types of people: those who want a higher credit score, those who don't care about their credit score and those who want to improve credit score. With a secured card, you can increase your credit limit without having to put down any money upfront. You simply have to pay an annual fee in order for the bank or lending institution holding your account to give you more spending power.
Difference between a Secured and Unsecured Credit Card
If you're looking for a new credit card, it's important to know the difference between secured and unsecured cards. A Secured Credit Card is backed by your own money, which you deposit upfront as collateral. It can take up to 6 months before the bank will issue a card.
An Unsecured Credit Card allows cardholders to use their available credit lines without putting any of their own money at risk.
How to Increase Your Score Using a Secured Credit Card?
Secured credit cards are an excellent way to build your credit score. Here's how it works: The card issuer reports to the 3 major bureaus, so you're building a positive history that can be reported on instead of being "invisible" or only reporting negative information.
Secured cards have no upfront fees, and they typically don't require a deposit because it is secured by your own money in the bank. With a secured card, you'll be able to get more loans and mortgages in the future at better rates than someone with no credit history!
1) Only use what you can settle monthly
2) Make several payments per month
3) Go for a low interest Secured credit card
4) Choose the right card
The Bottomline
Secured credit cards can present you with a new chance to grow your credit. But just like other cards, they are prone to misuse. The trick is in shopping for the best deals and using the card diligently: Do not max out the card, carry a balance, or get more cards than you can manage.
Want to know more about Increase Your Credit Score with a Secured Credit Card? Just Call on (888) 803-7889.
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