Should You Get a Secure Credit Card to Help Increase Your Credit Scores?
Hi there! if you are thinking of buying your first home and need a bit of help on how to increase your credit scores, a secure credit card may be the answer. This is one of the most successful ways I have helped clients to increase their credit scores when they have limited or no credit history, bad (580) or fair credit (580-669).
Applying is easy. Complete your application online and wait for a decision. this can be less than 5 minutes or a few days. Once approved, you card will be activate after your security deposit is paid. Security deposit amount will depend on the issuing bank.
Once you obtain the card, a great rule of thumb is to use no more than 30% of the card balance. For example, if the security deposit limit is $300, you should use no more than $90 at any time. Once you receive the bill, you should pay at least $70 -$80. Never pay the entire balance.
Because you are trying to build your credit, it is not advisable to pay the entire balance. Always pay more than required, leaving about $10-$20. In addition, always make sure to pay your bill on time. Missing even one payment, or paying late will do far more harm than imagine. Here a few more things to know about secure credit cards:
Some secured cards do not require a credit check or a minimum score to apply.
A security deposit will be required.
You can obtain more than one secure credit card.
Application may be rejected if security deposit is not paid within stipulated time frame.
The card you choose will determine if usage gets reported to all three agencies.
Not all secure credit cards report to all three credit agencies.
Credit limit may be no more than $300.
Some cards may charge a fee for opening the account.
Interest rates may be higher than average.
Application requirements are generally basic.
The deposit you make during the application phase, serves as your credit limit.
Your card may be upgraded if you use it responsible.
If you choose to cancel your card, it may take between 30-90 days to process your request and refund your unused deposit.
Remember, approval is not guaranteed.
Make sure you take a bit of time to read all instructions and requirements before applying.
If it matters to you, it matters to us. We at First Home Houston is always looking out for your best interest. As always, we thank you for stopping by. Until next time… Diana.
