Question Of The Day: How Fast Can I Improve My Credit Score On A Secured Credit Card?
Are you trying to build up your credit score for the first time? Or even trying DIY credit repair of a score that was damaged due to past financial problems? A good credit repair and buildup strategy in both cases is to simply invest in a secured credit card. The reason for this is simple: using a secured credit card is a very good and effective way to establish positive history on your credit report.
While this strategy to improve credit score shouldn’t be taken as a one size fits all method, it has been reported by consumers that using a secured card helped improve their credit score within as little as 6 months! Of course, this largely depends on each individual case.
What Is A Secured Credit Card?
As the name suggests, such a card is secured by a certain amount that is given to the card issuer as deposit. This serves as the credit limit of your secured card and if you fail to make a payment, the issuer covers the payment with the deposit amount.
Building or even improving the credit score using a secured credit card is very easy and requires little effort on your part. The trick is to use only a small portion of available credit as having a low credit utilization rate will significantly help buildup overall credit score. Don’t forget to make all outstanding payments on time as missed payments will be shown on your credit report’s payment history and negatively affect the score.
It seems those who have zero credit are more likely to benefit from a secured card because there’s no negative information on the report to hold you back. As far as positive information is concerned, building it up can help improve overall credit score and graduate from your usage of a secured credit card to an unsecured one but you can also apply for any card you qualify for.
Build and Improve Credit Score Faster By Using Secured Credit Cards
This credit repair strategy really works according to the vice president at Springboard, a non-profit consumer credit management service. So the next time you are pondering what to do regarding your low or non-existent credit score, don’t over think it and just apply for one, two, or maybe even three secured credit cards and use them actively to boost your score!