An important part of having a good credit score is to have a credit card with a low balance that you always pay on time. The problem is that if you have no credit or bad credit, most credit card companies either won't give you a card, or will charge you high fees.
A secured Credit Card is the solution.
A secured card means you put down a security deposit with the credit card company. They, in turn, give you these benefits:
- You get approved for a credit card without a credit check.
- They report to all 3 credit bureaus
- Generally lower fees than other cards
The following website offers secured cards and addresses any fees which may be involved:
When deciding which Secured Card to get, keep in mind the following items:
- Make sure they report to all three credit bureaus. (Some cards only report to 1 or 2).
- Get the lowest credit limit available (Remember, you will have to pay a security deposit equal to the credit limit).
- Find out if they charge an annual fee or any other account fees.
It usually takes between 2 and 6 months for this method to bring up your score. The most important factors to building a good credit history are:
- Keep the balance at $20 or less at all times (30% of your credit score), and
- Make your monthly payments on time every time. (35% of your credit score)