What is a good secured credit card?
I am trying to get my credit in good standing and I dont have any credit cards right now. I dont want to go applying for everything because that will look bad on my report.
I was told that a secured card will help me build up my credit
Is that true?
Are there easier ways to go about this task?
I can not get a card from my bank because I dont not have a bank right now
One that you get through your bank.
best place to get a credit card
A secured card will help you build your credit up but be careful of the upfront fees on many of them. Read the fine print. Some will charge you $195 upfront fee. Always keep the balance less than about 40% of the limit and pay on time. You’ll see your score skyrocket. Hope this helps.
Secured credit card is a pre-paid card. You give them $500 and they’ll give you a $500-$1000 line of credit. You let them collect intrest on your money, plus what they’ll charge you for the use of it and then you get to happily pay them back for letting you use your own money.
May want to open a checking account then ask the bank if there’s a way to build up your credit faster. People can and will offer help, but the only way to know for sure is to ask some one that knows for a fact. The Bank. A CPA. Or some one that’s in that line of business.
Try to get one card, master or visa. If new account they’ll start you with a lower credit line and you can work your way up from there. Use it sparingly, but use it, don’t over do it and don’t max it out. Make payments on time and pay a little extra each time. If they want $30, send them $35 or $40, it’ll also help get you free of it faster and making payments on time will show them you can be trusted.
Buliding new credit is hard and time consuming. It took me a long time, probably 15 years, but my card limit is way up from what it started out with. I could buy a new, kind of cheap car on it.
I also bought a truck, and a car while working on my credit and a house later in life.
Now I can walk into any dealship and get whatever car/truck I want and drive it home without questions asked.
I also guard my credit with a vengence. I know my limit and don’t abuse the credit line.
Are you coming from a damaged or new credit perspective?
Credit cards that most people carry around are unsecured loans. They have nothing but your good word and credit history to prove you will pay the loan.
Secured credit cards have cash collateral to back up in the event you default on the loan. It makes the bank more willing to issue credit to a person with a damaged or new credit history. Their stakes are lower.
With secured cards, you of course pay them an amount to hold for a given credit line. They won’t touch your deposit unless you default (don’t ever pay) on the credit card. Many banks will dump this into a Savings account.
As you pay the balance off, it is reported to the credit bureaus like any normal credit account and over time with good management your score will increase. In the future you may be eligible for a normal, unsecured credit card and I believe you get your deposit back.
As with normal credit cards, secured cards have many options to chose from. I went to bankrate.com and pulled a list of cards out there as well as some of the bigger banks. See what the fees and deposit requirements when choosing a card that’s best for you.
If you are building credit, don’t go beyond your means. Pay the thing off every month if you can or go way beyond the minimum payment.
Good luck on building an excellent credit history!
Try this website to find it
There is some useful advice here.