If you’re trying to bring your credit score back to life, don’t worry — we know exactly where you’re coming from. The economy has gotten worse and worse, and it’s no secret that people are having a hard time making ends meet. This also means that credit is harder to maintain because there’s not a lot of excess cash to go about. So this means that you have to make some pretty tough decisions. Do you take care of your family, or do you feed the credit card bill? In times where things get really tough, you might find that you just aren’t able to take care of your credit like you used to. But that was then — this is now. If you’re trying to get on your feet and you want to rebuild your credit, you might find that lenders aren’t lining up to give you credit anymore. Once you’ve had credit problems, the interest rates get higher and the level of rejection gets bigger as well. You have to make sure that you’re covering all of your bases as much as you can. This is where the secured credit card comes in.
Now, you might assume that a secured card won’t help you much. That’s just not the case at all. You’ll actually discover a lot of goodness within the world of secured credit cards. The real question is whether or not you’re really willing to enjoy the secured credit card or if you’re going to only see negatives in it.
This is a card that you have to fund yourself, usually with a low deposit. This is so that you have a buy in with the lender. In order to get them to trust you again, you have to take matters into your own hands. You have to show them that you’re willing to put some of your own money on the line to get this line of credit. You’ll still have a certain amount that you can charge each month, but it’s going to be backed by your deposit. So if you walk away from the card and refuse to make payments, the secured side kicks in and your deposit is forfeited. But the good part about this is that it’s only up from here.
That’s right — you won’t have to be stuck with a secured card forever. You actually get to show that you can handle credit again. This means that if you make all of your payments on time, you’ll be given the chance to convert your credit card into an unsecured card again. The deposit would be refunded back to you, or applied to your bill. But it’s really important to make all of your payments on time. Even if you’re a day late, it’s still going to count against you.
If you’re interested in secured credit cards, you really want to make sure that you’re going with one that reports to all of the major credit bureaus. This will mean a raise in your credit score, as you’ll be making great payments.
Bad credit doesn’t stick around forever. You might be tempted to just get out of the credit game completely, but that’s actually a worse idea than going with secured credit cards. If you drop out of the credit game, the lenders will have no idea whether or not you’re a good credit risk or not. If they can’t tell the difference between a great borrower or not, they’ll opt for just rejecting you rather than being unsure. Now, if they see that you had credit problems in the past but you took responsibility and started from scratch that tends to look a lot better on your side.
Why not check out the wide range of secured cards today? When you really start seeing your credit score climb, you’ll truly be glad that you did!