Accept Secured Credit Card Offers And Your Score Might Soar!

Starting Fresh

A great solution to this credit problem is to apply for a secured card which can help you build your credit and payment history to boost your credit score. What are secured credit card offers? Secure credit cards are guaranteed by money that you give the bank to hold; essentially you are borrowing against your own money that the bank is holding. After an allotted period of dependable usage, the bank can return your money and turn your secured card into a traditional or unsecured credit card. Some cards allow you to slowly add unsecured credit on top of the amount that is covered by your deposit. This means they may increase your credit limit as you show yourself to be dependable.

Picking the Right Secured Credit Card Offers

Before applying for a secured card, look at the pros and cons of different options that are available. If improving your credit is important, find a secured credit card application for a card that reports to all three credit bureaus. One interesting thing about secured cards is that many cards put the deposit in a savings account or CD so that it earns interest; some cards even offer rewards programs. Different cards have different fees, so be sure to ask a representative and read all of the fine print; there can be application fees, monthly fees, and annual fees, as well as the interest.

Building (or Rebuilding) Your Credit

Remember the following guidelines as you work to build, or rebuild, your credit:

• Keep the balance low on all your cards and avoid the temptation for a spending spree. Use the card for purchases you would make anyways, purchases that are within your budget.
• Pay your card off every month if possible; if not, at least pay more than the monthly minimum.
• Always pay on time. One of the main benefit of a secured credit card is to establish and show a reliable payment history.
• If you have the opportunity to increase your credit line, do so, but make sure not let the limit exceed what is realistic for your income.