What are some good companies to get a secured credit card from? I am currently paying off hospital bills and never had a credit score in my life. I%26#039;m 36yo and would like to know what it%26#039;s like to have credit for once. I know credit cards are bad. I%26#039;m mature enough to handle knowing I only want one to help me raise my credit score in case I want a house or need a small loan in the future for a car, etc. Thanks for any help.
If I%26#039;m digging myself out of debt now will a Secured Credit Card help me raise my credit score when I%26#039;m ready?
I agree with my good buddy Spi-fi. To take it another step, secured credit cards are a PERFECT way to rebuild your credit, especially if you%26#039;re able to come into a significant sum of money because the major difference between regular and secured cards is that you have to put a deposit that%26#039;s used as collateral to establish a credit line in the same amount. You can also control the credit line by increasing it when you add to the deposit. This is especially useful if you%26#039;re wanting to build your credit and save up for big ticket purchases like a house or a car because you can build or rebuild your credit by using a a secured credit to %26quot;custom build%26quot; a high limit credit card that would look good when it reports on your credit. High limit cards provide a considerable cushion between what you owe versus, what you%26#039;re capable of borrowing, which makes up 30% of your score. Also, you would have a means of saving up for the down payment since most secured cards are usually linked to a savings account or a time deposit (CD). Most times when you save up your money, especially for a house and/or a car, it just sits there, but with a secured card, you not only find yourself saving up more money by adding to the deposit to boost the credit line, but you%26#039;re building precious credit history in the process, so it%26#039;s a win-win-win situation. And as long as you make small purchases($20-30/month) that can be paid off in full on time every month, usually after a year or so the card either converts to a regular card, or a better card%26#039;s offered altogether, and most importantly the deposit%26#039;s no longer needed and is given back WITH interest. So you;ve not only rebuilt your credit, got a decent limit credit card, AND saved up some money out the deal, again a win-win-win situation. so,if used properly, a secured card can effectively rebuild your credit.
I posted several links to some secured credit cards that may work for you.
good luck
If I%26#039;m digging myself out of debt now will a Secured Credit Card help me raise my credit score when I%26#039;m ready?
It can help over time if you are really responsible. The only thing with those is the astronomical interest rates you will get. I would use it as scarcely as possible or pay it off immediately just so you don%26#039;t get stuck with that interest.
The only true credit repair is time though.
If I%26#039;m digging myself out of debt now will a Secured Credit Card help me raise my credit score when I%26#039;m ready?
I%26#039;d order a copy of your credit report and credit score from Exerian first. Everyone has a credit score, so you%26#039;ve got one, even if it isn%26#039;t the greatest.
I wouldn%26#039;t start by getting a secured credit card until you try getting approved for an unsecured credit card. You might want to try getting a loan from your bank in the amount of your hospital bills. This will establish a credit history and start building your credit. Once you have paid off your loan, the same bank will be more than happy to give you a credit card to build your credit up even further.
Another tip, work with the hospital to re-negotiate the total of the bill. Often times, if you tell the hospital you cannot pay the whole amount or that it%26#039;s causing you financial hardship they will agree to reduce the amount, sometimes by a very significant amount. If they refuse, you can always use a non-profit credit counseling service who almost always can renegotiate your debt down by 20-50%.
If I%26#039;m digging myself out of debt now will a Secured Credit Card help me raise my credit score when I%26#039;m ready?
I%26#039;m wondering how you made it this far in life without any credit or atleast a car. Anyway, credit cards are not inherently bad. People make bad choices. So, since you are mature enough to handle credit and only got yourself into debt with medical bills, I would apply for an unsecured credit card first. Explain the situation and see what happens. Don%26#039;t get one with an annual fee. Even if it has a high interest rate, use the card BUT BE SURE to pay the card off each month so essentially you aren%26#039;t paying a cent. After you prove you pay your debts, then apply for a card with lower interest, but don%26#039;t close the other account because a large percentage of your FICO score is your debt to credit ratio. Watch the Suze Orman show on Saturday night. She will get you on the road to financial success.
If I%26#039;m digging myself out of debt now will a Secured Credit Card help me raise my credit score when I%26#039;m ready?
Now to actually answer your question.
Yes secured cards do build credit. Any trade line paid as agreed does this.
Try Orchard bank, First Premier and H.S.B.C. they all offer these cards and all report to the credit bureaus.
Use them for everyday things make sure you never exceed 30% of your credit limit in any given month and pay in full before the due date.
After doing this for 8-10 months you should start to get offeres for better cards. Do the same thing with them.
I did this with two cardes for 24-months and raised my score over 150-points.
If I%26#039;m digging myself out of debt now will a Secured Credit Card help me raise my credit score when I%26#039;m ready?
The answer is yes, but only after a few months. Credit is logical so when you get a new card the question your credit will ask is what are you going to do with it. Are you getting credit because you are out of money, or just for convenicence. When it sees you are using it, and paying it off, then your credit will increase. Remember anything over 33% of your limit may hurt you, over 50% will hurt you even more. If you get a small limit of say $500, that means you should keep your balance to about $150. I used to buy a few pops a month to keep it going.
If I%26#039;m digging myself out of debt now will a Secured Credit Card help me raise my credit score when I%26#039;m ready?
In my experience there are two types of Bad Credit Credit Cards. One is a secured card, and the other has a much higher rate of interest. Both can be used to rebuild your credit worthiness after getting back on your feet. Secured credit cards are great for rebuilding your credit. You send the credit card company a pre deposit amount set by the company%26lt;!--This amount will be equal to your credit limit. Pay over your minimum every month and send your payment in before the due date and you will build your credit up gradually. Never miss a payment, be late on a payment, or go over your credit limit even by a small amount.
http://badcredits.awardspace.com/credit-...
You don%26#039;t want the company to ever have to take from your pre deposit amount because they want you to handle your account just like you would an unsecured card. A great thing about this pre deposit amount that you send in is it can act as a savings account even earning a little--%26gt;bit of interest for you. After establishing yourself with the credit card company, they may decide to give you a unsecured credit card or increase the limit on the one you have with them without having to make another deposit. Secured credit cards are a good choice for anyone wishing to rebuild their credit history.
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