Use a Secured Credit Card to Build Your Credit

A Credit Article Contributed by Annie Bauers

The Only Credit Card I Qualify for is a Secured Credit Card Will It Build My Credit?

If you don't have credit and can only get a secured credit card get one, but we wise with it. This is because all the payments you make on your secured credit card show up on your credit report just like a regular credit card would be recorded. If you are wise you will get a low credit limit, keep the card balances open and make your monthly payments on time.

If you want to use your secured credit card to build your credit you must make every single one of your payments on time or will you accomplish is establishing bad credit and that's no good. So get a card and make the payments and establish good credit and bigger credit opportunities will be available to you in the near future!

I Don't Have Any Credit If I Get a Secured Credit Card Can I Build Credit?

If the only credit card you can get is a secured credit card get one. The way a secured credit works is your limit will be the amount you put on deposit for security with the credit card company that issues it. Some cards can be secured for as low as $100. You might want to find one of these and open up an account for $100. This will enable you to make all of your payments on time and not over spend while you are learning how to manage your debts.

Every month when you make your payment on time it will be reported to your credit report and you will establish good credit. After you have started a good credit history you will be offered cards with higher limits and lower interest rates. The most important thing is to make all of your payments on time. If you do you will find that things get easier for you in the future.

Does a Secured Credit Card Work the Same on My Credit As a Regular Credit Car?

Yes a secured credit car works the same way as a regular credit card. You can make purchases with the card up to your limit. You also make regular monthly payments on the credit card just like you do on a regular credit card so keep that in mind. If you get one of these cards also remember that your payment history is reported to the credit reporting agencies every month and will appear on your credit report. If you make all of your payments on time you will get a positive mark every month.

Also bear in mind if you are late that will be recorded on your credit report as well. So be a wise consumer and use the credit card to build positive good credit and then more credit opportunities will be available for you, including buying a house or new car sometime in the near future! So make those payments!