How to Build Your Credit With A Secured Credit Card

If you are trying to build, or establish credit, a secured credit card is a great option to get started. These cards allow you to increase your credit score and are available regardless of your current credit status.

Instructions

1. A secured credit card is a line of credit in which you secure with a deposit in the amount of extended credit. You can start small, such as a $300 limit to start. Then, as payments are made and your finances allow, you can increase your limit to as much as needed by simply increasing your deposit. A better way would be to obtain a second secured card. This will allow for two positive accounts on your credit report.

2. To start building your credit with a secured card, you will first need to determine where you would like to obtain your card. There are hundreds of websites online that offer secured credit cards. Most local banks and credit unions also offer these type of cards.

3. Once you have obtained your card, it is very important to make every payment on time. It would be wise to mail your payments in as much as three weeks before the due date. This will ensure that your payments arrive on time and avoid any late payment strikes on your credit report.

4. Also, keep very close track of the use on the card to avoid going over your limit. Using it strictly for the purchase of fuel for your vehicle is a great way to use and track (with receipts) these types of cards.