Secured Credit Cards

Secured credit cards offer their users the ability to build credit without paying high annual fees or interest rates. While not as helpful to build credit as an auto loan, when used at the same time as a large installment loan a secured credit card can help you improve your credit rating even faster.

How does a secured credit card work?

It is easy. You pay the secured credit card company the amount of money you would like to have as a credit limit. A $500 deposit will usually give you a $500 limit. Then you have a revolving credit line for $500 on your credit. We never recommend maxing out your line of credit, but some activity on the card is not a bad idea.

JUST REMEMBER TO PAY ON TIME.

The worst thing you can ever do on your credit is not pay on time. Late payments show on your credit and drive your score down very fast. Months, even years, of making payments on time can be flushed down the toilet with just a couple of late payments.