• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 11. CREDIT REPORTS > Secured Credit Cards

Secured Credit Cards

If you are unable to get a conventional credit card and want to establish credit, get a secured credit card. They are easy to get and if, over time, you are able to show that you can handle the secured credit card responsibly, you will find that your credit score will improve, and you will likely be able to get a regular credit card. In fact, FICO scores cannot be calculated unless you have a minimum of one account that has been open for at least six months. Through the responsible use of a secured credit card, you can take a first step toward a good credit score. A secured credit card looks just like a regular Visa or MasterCard credit card. The issuing bank requires you to deposit a sum of money to secure your credit limit. With a secured credit card, the bank has little risk and you get the ability to establish your creditworthiness. As always, shop around for the best deal with the least fees. Again, www.bankrate.com is a good place to go to compare various secured credit cards.

Tip

Many of us are inundated with offers to get a new credit cardand consolidate our debt from other cards by paying off the other cards with checks from the new card and transferring the old credit card debt to the new card. This maneuver is always fraught with fine print traps, although in some circumstances it may make sense. However, it is also important to consider that as far as your credit score is considered, when you close long held credit cards, you reduce your credit history, which can, in turn, lower your credit score.



PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint