secured credit card
Secured cards are big business right now, and no they are not the only way to build your credit score. And no they aren't all created equal, and no it's not always the best solution for everyone.
A secured credit card, is one that works like a debit card, meaning you aren't really being extended credit, it's just that your payments are being reported.
A secured credit card, is one that works like a debit card, meaning you aren't really being extended credit, it's just that your payments are being reported.
And no, if you use your debit card from your bank, and choose "credit" instead of "debit" at checkout, that is not using your credit, and not it's not being reported.
A couple of rule of thumbs are as follows:
If you have a $200 card, you should pay it off monthly, and you should use only about 30% of the available credit at a time. That's about $60.
The credit will be reported monthly, starting 30-45 days after you get your card.
You want to use the card once a month, or at least once every three months, so that it shows as active use. It's not just an open savings account. Also make sure you fully understand the fees that you will be charged. Compare closely, and seek the advice of a professional for the best options.
Going over the limit, can put you in default, and be a negative mark against you, and reported.
If you have a $200 card, you should pay it off monthly, and you should use only about 30% of the available credit at a time. That's about $60.
The credit will be reported monthly, starting 30-45 days after you get your card.
You want to use the card once a month, or at least once every three months, so that it shows as active use. It's not just an open savings account. Also make sure you fully understand the fees that you will be charged. Compare closely, and seek the advice of a professional for the best options.
Going over the limit, can put you in default, and be a negative mark against you, and reported.