Improve Your Credit With a Secured Credit Card


If you are looking to make improvements to your credit, then one way of doing this is to get a secured credit card. For folks out there who have messed up in the past, the good news is that you don’t have to live with poor credit. If you are smart and you’re willing to work hard, then you can get yourself out of the hole and you can bring your credit score up to a reasonable level. Some people run into the problem of not being able to get any credit to prove themselves once again. If this is your situation, then perhaps going with a secured credit card is the best option for you.

Approved even with very poor credit
One of the nice things about applying for a secured credit card is that you gain approval regardless of your credit score. Even people who have previously defaulted on multiple credit cards and people who currently have past due credit cards can get their hands on a secured line of credit. This is good for folks who need to repair their credit, since you likely will not have many other options. Though it might seem unfortunate, you have to take what you can get at the beginning. The high approval rate is a definite point in the favor of secured cards.

The chance to make regular payments
What future creditors want to see out of you is that you are able to sit down and make payments each month. Instead of letting your accounts slide, you are able to stay on top of them. Even though a secured credit card requires you to put some money up to back the credit line, you still have to make payments on your balance every month. Each time you make one of these payments, it will act almost as if you had made payments on a non-secured credit card. The boost will be seen in your credit score and show creditors that you have turned a corner with your financial approach.

Something good on your credit report
If your report is filled with negative marks, then it’s time to add something good to the report. You need to put something there that will show proof to the future creditors that you want to work with. It would be nice if they would just take your word for it and believe that you have made major strides. When dealing with things like credit and money, people need proof, though. With a secured credit card, you are taking baby steps and providing them something positive to latch on to. Once you have that, you can transition into different types of credit and start to rebuild your financial life even more.

Using secured cards as a transition
You will want to use secured credit cards as something of a stepping stone. You won’t go right from paying off a secured card to getting a huge personal loan, but chances are good that you can get a small unsecured card. The key is to take it slow and understand that nothing moves quickly in the financial world. Your entire credit report is just an account of all of the good decisions and bad decisions you have made in the past. Adding more good decisions should be your goal for now. If you can transition to a better card, then you can continue to make those good decisions. Before you know it, your entire report will be filled with recent, positive marks, giving you a chance to move past all of the ugly smudges.

Secured credit cards are a safe option
If your struggles have been pronounced, then secured credit cards are good because they limit any further damage. Since you are putting up the money prior to taking on the card, you won’t have to worry about defaulting and then owing the creditor even more money. This makes for a very safe option. You will be able to work on paying things down without any stress or any risk whatsoever. As many financial experts have said, this is an option that provides a lot of upside, while providing very little in the way of downside.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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