Learn How To Rebuild Credit Effectively With A Secured Credit Card

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					Learn How To Rebuild Credit Effectively With A Secured Credit
Card

After suffering through bad credit and cleaning up your credit reports it is still a
good idea to take some steps to help rebuild the credit profile up stronger, resulting
in a higher credit score. There is one thing that you can do in order to help improve
your credit score. Regardless of whether you want to know how to rebuild credit
because the credit report is thin, or if you are looking for ways to re-establish credit,
this tip will work in both situations.

We have a relationship with a bank that will issue a secured credit card to anyone
regardless of his or her credit score or credit history. It is a guaranteed approval, and
in fact it doesn’t even require a credit check. It also reports each month to Trans
Union, Equifax, and Experian; this helps to create a positive payment history.
Another key point is the way the card is reported on your credit. Most secured credit
cards will report as being secured, but not this one. It will appear as a regular credit
card with no mention of it being a secured product.

The limit of the secured credit card is equal to the amount deposited at the bank.
This can be as little as $200 up to $3,000 to start, and over time they will allow
future deposits to raise the limit. Just starting out it is fine to get it going with just a
$200 limit. This will at least get the card to report and have some on-time payments
reported to the credit bureaus. Over time it is a good idea to increase the limit,
because once the credit is improved and you begin to apply for other credit cards
you will want them to see that you are currently making your payments and that you
are a credit worth consumer. If they see a high limit on a card that you currently have
with a perfect payment history, they are more prone to issue you a card with a
similar limit. Example: if you apply for another card and the secured credit card has
a $200 limit, then you can except a similar credit limit on the new card; but if you
bump the secured limit up to $1,000 then the chances of receiving a new card with a
high credit limit is more likely.

Also, it is important to remember that the money you use to open the secured credit
card is not wasted. You are simply just depositing it as collateral, and may withdraw
it at any time, although that would result in the card being closed. Think of it as a
savings account while you repair your credit and improve your credit score. This is a
great product that does exactly what it is designed to do: it teaches financial
responsibility as well as help to rebuild credit. For more information on this secured
credit card click here for more information and then click on “Credit Building” at the
bottom of the page. Aside from our credit repair program we also help our clients
with ways to rebuild credit.

				
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