When should I use a secured credit card?

In 2003, my credit was a mess. It had multiple marks from multiple issues. I owed to a school, I owed on a student loan and had bought a water bed that needed to be paid off. I know what you are thinking. Who the heck owns a waterbed it wasn’t 1970. On the serious side, I had zero positive accounts because I had not lived in the US for over 5 years. While I worked to get the negative items off my credit report, I also need to start putting positive items on my credit reports.

One of the first things I did was put 300 USD on a secured credit card with Wells Fargo. I used the card a little and paid it off every month. Just like any regular card you don’t want to charge more than 30% to it because if you do this will hurt your credit rating also. Even if you don’t pay it off every month you want to make at least double the minimum payment. It wouldn’t hurt to turn on autopay to ensure the card gets paid every month.

Secure credit cards can also be great if you are new to the world of credit and no one will give you a card. They are especially great when you have had a bankruptcy and no one will give you credit for you to start rebuilding yours. They are also great when you are young and you have no way to build credit.

When do secured credit cards not make sense? If you already have active credit cards that might have late payments on them you probably don’t need a secured credit card. Instead, you should dispute those late payments or try to ask the credit card company to delete the late payments. If you have at least 3 credit cards, you don’t need a secure credit card either.

We have worked with creditcardbuilder.com to bring you a great deal on a secured credit card. This is a MasterCard card and reports to all 3 bureaus. You need a minimum of 200 USD to open it. We recommend this card because it does report to all 3 of the credit bureaus. This will help in getting your score raised across the board. In fact, with just one positive tradeline like this, you could possibly get your score raised as much as 50 points.

Do you have questions about secured credit cards or your credit score in general? Don’t hesitate to get a hold of us so we can do a free credit analysis with you.

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