The Benefits of Secured Credit Cards – Build Credit History
It can be difficult to get approved for credit cards and build credit history. This is true especially for those with bad credit or no credit. Establishing good credit is one of the most important things a person can do to reach their future financial goals. The longer a person has established good credit history the easier it is to get approved for credit and to receive low-interest rates on loans. This is why it is important to start with at least one credit card to begin the process of building good credit history.
It can seem expensive at the time to pay the fees associated with a secured card. A person only needs to be reminded of their financial goals for the long term. One only needs to think of the future savings one will receive on interest rates and annual fees when they have established good credit.
There is always a starting point. Do you have no credit and need to start establishing good credit? Do you have bad credit and need to start rebuilding your financial life? Have you been in any of these situations? Have you been declined by unsecured credit card companies? If that was your experience then a secured credit card is right for you. Build credit history and secured credit cards are the easiest to get.
Secured Credit Cards Easy Credit Approval
Secured credit cards work by depositing money into an account. The dollar amount deposited becomes the credit line for that account. That money will be used as collateral to the card company in case of default. Because the secured credit card company is now protected they will extend that individual credit. The most important benefit to the card holder is that all payment history will now be reported to the three major credit bureaus.
Credit Cards Build Credit History Fast
The good news is that it only takes six months of on-time credit card payments to begin to see the results. By this time a person’s credit score will begin to improve. It is important to continue with on-time credit card payments. Frequent credit inquiries to the credit bureaus will lower a person’s credit score, and negate all the gains from the past six months.
After some time has passed the next credit card to apply for is an unsecured credit card for either bad credit or fair credit. It is not good to have too many open credit accounts, but it is good to have at least three different active credit accounts. A good example would be one auto loan and two credit card accounts. Keep it simple and clean.
Review of a Secured Credit Card Application to build Credit History from OpenSky® Secured Credit Visa® Card
OpenSky® Secured Credit Visa® Card
In conclusion, it is easy and fast to apply online for a secured credit card to build credit history. It is important to review the terms and conditions of each secured card application offer. Learn about the benefits of each secured Card.
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I have been trying to get a credit card for some time. So far no luck 🙁 🙁 I appreciate all the information in this article. I will try for a secured credit card this time. I feel like I have a good understanding on why I don’t have a credit card and I am optimistic about my chances now. Thanks Credit Fast 🙂 🙂
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