Is it better to get one secured credit card for 2000. Or to get four with 500 from different places?
I want to rebuild my credit…secured cards are the way to go for me it seems. I have 2000 to work with.
I want to rebuild my credit…secured cards are the way to go for me it seems. I have 2000 to work with.
Get one from a single place with the highest possible limit. After some time, try to change it into unsecured.
In my opinion, it is better to get one for $2000 dollars rather than 4 for $500 because with 1 u only have to pay one bill every month. Only 1 set of interst rates to worry about. You can get some “store cards” to try to help build your credit. Use the credit card for at least 1 item a month for example have your cell phone bill directly deducted from you credit card. It’s a bill you have to pay at then end of ur billing cycle anyways so why not have it help build your credit. When shopping for clothes use the “store card” and then way it off right away once the bill arrives. That’s a start but power to rebuild your credit lies in your hands through spending what you can actually afford to spend.
I agree with both prior answers. Also consider that secured cards almost always have an annual fee. By opening just one account, you save yourself the annual fees you would have to pay on four accounts. Plus, having 4 small accounts can be very impractical. What happens when you need to make a $1000 purchase and you have 4 $500 credit cards?
Why don’t you get 2 secured cards with a $1,000 credit line each. After one year of on time payments you will most likely get your $2,000 back and have 2 revolving accounts reporting to your credit file.
I like the programs from Bank of America and Wells Fargo because they have low annual fees, no junk fees and report to all 3 credit bureaus. Also as you improve your credit score you will have access to their other credit products which are competitive.
The other place you can go is your local credit union.
Check out for all the secured card programs.
Good Luck