Secured Credit Cards are a Great Way to Build CreditWhat is a secured credit card?
A secured card requires a deposit (cash collateral) that becomes the credit limit for that account. For example, if you deposit $500 in the account, you can charge up to $500. You may be able to add to the deposit to add more credit, or sometimes a bank will reward you for good payment and add to your credit line without requesting additional deposits.
How much money do I have to deposit?
Again, the amount is basically up to you. Most cards have a $300 minimum required. Your credit limit will either be the amount of your deposit or some percentage above that amount. The higher your deposit, the better it is for your credit.
Will it help my credit?
Yes. Secured credit cards are credit builders. If you have bad credit or a lack of credit history, secured cards are the way to go. You need to have at least one revolving line of credit in order to optimize your scores.
Will I be approved?
Again, secured credit cards are credit builders. Although we cannot guarantee you will be approved for it, we know these financial institutions have created secured credit cards to help you build credit, without much risk to them. Therefore they do understand you might have some credit blemishes and you are in the process of rebuilding your credit.
Note: Blackdiamond Consultants LLC. does not fund any of the options above and cannot be responsible for the outcome.