Why Are Secured Credit Cards Becoming Harder to Find?

Secured credit cards have long been the method of choice for building or re-building credit. Consumers with no credit or bad credit could simply pay the deposit for a secured card and begin proving their ability to make payments on time by using the card wisely.

As that wise use was reported to the credit bureaus, the consumer began to build a good credit score. They've been easy to get because they present zero risk to the card issuers.

So why, all of a sudden, are banks discontinuing them?

Two reasons:
• They don't provide a high revenue
• They no longer want to associate with people who need them

That sounds a bit harsh, doesn't it?

We know that card issuers are all about making money - that's why they're in business. It's just become more apparent over the past few months while we've been watching them raise rates and fees in an effort to rake in more dollars.

Some of us have wondered about their new policies of reducing credit limits for even customers with good credit and stellar payment histories.

It almost looks as if they are using some kind of secret scoring system to determine which of their good customers could possibly become defaulting customers. And of course, they're not very interested in consumers who pay their bills in full each month - because there's no profit in that for them. That part makes sense.

Secured cards are generally low limit cards, so while the interest rate is high - usually at about 18 - 20% - the revenue from a small balance is still not much revenue. Often the card's largest revenue is from the annual fee, the set up fee, the processing fees, and the usage fees.

Since the new regulations set to go into effect next year will limit those fees, many card issuers are hurrying to get out of the secured credit card business now.

HSBC, New Millenium Bank, and Bank of America do still offer secured cards - but all of their offers are not alike. So if you want one, check all the details before you apply.

Here's what you need to look for:
• Make sure the card reports to the credit bureaus
• Comb the terms and conditions for disclosures about fees you may not expect
• Check the rates - I've seen from 7.99% to over 20%
• Be sure there's a grace period - 20-25 days interest free after you make a charge if your previous balance was paid in full.
• Look for a "graduation" provision - to ensure that you can move on to a larger, unsecured credit limit after a set period of favorable use.

Author: Mike Clover
CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and ground breaking credit news.

Why secured credit cards will help you.

Secured credit cards can be the quickest road to establishing credit or repairing your credit report. With the current economic meltdown in our financial sector there will be more and more families plagued with bad credit due to financial strain. Once this recession that no one wants to admit we are in is over; everyone that has suffered credit wise will start the credit rebuilding process. It will be hard for most to get un-secured credit cards so they will have to get secured credit cards to rebuild. In this article I wanted to discuss how secured credit cards will benefit you.

What is a secured credit card?
A secured credit card is a credit card that requires a deposit from you in a account of the credit card companies choice to secure the card. The cost to you is typically between $200.00 and $300.00. Once you deposit this money in the account the credit card company will report this card to all 3 credit bureaus as good credit. You want to make sure you keep your credit card balance around 30% or less of the secured credit amount.

Who should get a secured credit card?
Here are the individuals that should apply for a secured credit card
• Foreign Nationals
• Individuals with bad credit
• Young adults starting the credit building process
• Students or apply for a student credit card.
• Or anyone that has not built credit at all.

Secure credit cards are the quickest way to get your credit established. Depending on your circumstances, if you have decent credit scores you may go ahead and apply for a un-secured credit card. With the way the credit scoring process currently works you will need to have at least a couple credit cards reporting in your name to all 3 credit bureaus. Secured credit cards are a great way to start the credit building process. We recommend the Orchard Bank Credit Card, which has reasonable fees to get there card.

CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and free credit repair advice.

Top 10 ways for students to build good credit scores.

One of the greatest things about our country is the ability to become financially independent, but learning how to do this can be challenging. Building good credit is a must; it will help you qualify for loans, rental, car insurance, cell phone plans, and credit cards. The first step is to be responsible with your spending habits.

In this article we wanted to give you some tips on building good credit so you can get off to a excellent start on this credit score building journey.

1. Get a secured credit card or student credit card. When you are new to the credit application process it will be hard to get a credit card. Typically banks will not extend credit to you without some good credit history. This can be very aggravating. So secured credit cards and student credit cards are great ways to start the building credit process.

2. Become an authorized user on your parent’s credit cards. Until recently FICO considered this a controversial practice and they have decided to continue allowing also know as piggy backing somebody else’s credit to help your credit. This is a great way for parents to monitor there kids spending habits while at college. Once they are doing well with this process then you might consider applying for a student credit cards or maybe a retail credit card with a low spending limit.

3. Use credit cards conservatively. When spending on your credit cards make sure you can pay what you charged on your credit card off that month. If you start to wrack up credit card debt you will drop your credit scores. So make sure you only charge on your credit card what you are able to pay off that month.

4. Select the right credit card for you. Once you have established some credit on your own, make sure you do some research on the credit card you are applying for. Not all credit card offers are the same. Some credit cards have yearly fees and some don’t. Some credit cards may have other perks that might be beneficial for your situation.

5. Use credit card for emergencies. Some financial experts recommend that you use your credit card only for emergencies when first starting out with credit. Using your new credit card is part of the credit score building process, but make sure at first you are real careful in regards to your charging habits. You might consider using your new credit card for situation where you need new tire or a cell phone goes south on you. Once you are custom to a credit card payment than at that point charge a little here and there on it.

6. Get a cell phone in your own name. When you are building credit you want to establish as much credit as possible in your own name. Sometimes creditors will not allow you to get a cell phone in your own name without a big deposit, but getting a cell phone in your own name builds good credit.

7. Don’t apply for several credit cards at one time. Once you have credit cards in your own name don’t go hog wild with applying for a bunch of credit. You really only need a couple of credit cards, that is it. Student really only need one credit card to start out with.

8. Pay all your bills on-time. This is one of those common mistakes youngsters make when first starting out. If you are late on anything it will affect your credit. Make sure you don’t pay anything late. Even your internet bill could affect your credit if not paid.

9. Use your student loans for education expenses only. Student loans are a great way to establish good credit. They are also a way to ruin your credit. So when you get a student loan make sure you pay it on-time and use that money for educational purposes only. Once you are done with your education, consolidate those loans into one small payment.

10. Paying down credit card balances. If for some reason your credit card balances get high during your time in school, make every effort to pay down your balances. You should never have credit card debt higher than 30% of your allowed credit limit.


If you are not sure where you stand with your credit it would not hurt to pull a recent copy of your free credit report today. A educated student saves in the long run.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

My Credit Scores have dropped due to new credit cards-Why?

The venture to build a good credit score report is sometimes aggravating and exhausting. If you have never had credit or let all your credit go to collection, the first step on building your credit scores is building or rebuilding your credit report. Anyone that understands this process will tell you your first step is to get some secured credit cards. There are some matters you need to know that will drop your credit score though. Here is what you need to know.

Secured Credit Cards
This type of credit card is a great way to establish credit regardless of your situation. Reason behind the success of this card is because it reports to the credit bureaus as good revolving credit. This card does require a deposit of your own money into the banks account, typically around $300. The good news is with a little payment history you are on your way to save because you have higher credit scores now. It’s a small investment to save lots of money down the road.

Too much credit too quick
If you apply for too many credit cards to quick, your credit score will drop. The credit scoring models look at this as high risk. I would just apply for two credit cards only, that is all your really need.

Credit History
When your credit scores are calculated the length of credit history is a factor as well. If you just applied for credit cards your credit scores could drop, but they will eventually go up. There are all kinds of factors in the credit scoring process, and if its new credit it will take some time to see improvement in your credit scores. But remember this is the quickest way to increase your score though.


Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Credit Cards-Why you need them.

Maybe your credit score and credit report was affected by credit cards in the past. Credit cards can hurt lots of people if you don’t manage them properly. Contrary to popular belief credit cards are necessary for good credit scores and emergencies. In this article I am going to discuss why you need credit cards and how to manage them.

Building good credit
Credit cards are part of the credit scoring process. Fair Isaacs’s fico score model likes to see a good mix of credit reporting on your credit report. This mix of credit includes credit cards. Typically anyone that is educated on the credit score building process will recommend getting a couple of credit cards to establish good credit. So with this being said you need a couple of credit cards to get good credit.

Emergencies
Let’s assume it’s during the middle of August, and you are a home owner. You are in a state where it gets really hot, and this really applies to everyone with Global warming. All the sudden your A/C goes out. You get someone out to estimate the repair cost. They tell you it will cost $4000 to fix it. The last time you checked you only had $1000 in savings. Hmmmmm….. If you had a low interest rate credit card you could charge the rest of the cost, and pay it of over the next year. The list can go on with situations that may arrive and you find yourself not having the money to fix the problem at hand. So with this being said credit cards can be used in emergencies like what was mentioned.

Airline Miles
Maybe you are a frequent flier for business and would like to get those miles applied to your personal credit card. You can charge all business trips on your own credit card and those airline miles can get applied towards you own personal vacation. I personally know people that fly first class for free by applying this process.

Credit Card Management
Managing your spending habits is very important. This is critical to keeping your fico scores healthy. If you charge on a credit card for leisure purposes, you need to make sure you pay it off that month. If you find yourself racking up a bunch of credit card debt STOP and don’t charge anything else until you have paid off your current debt. You should not have more than 30% of the allowed credit limit charged up. If you find yourself with more than 30% of your allowed credit limit charged up, your credit scores will suffer a result.

Hotel and car rentals
If you are getting ready to take a trip and need to reserve a Hotel or a rental car good luck without a credit card. Having a credit card is just a part of life these days.


If you don’t have any credit cards apply for one today here.

Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Secured Credit Card Q & A

Q:
Hello,
I have run into credit problems during the last 2 years. Once the economy in the real estate industry went bad, I had to let all my credit cards go. My credit report is ruined now along with my once good credit score. I have starting settling on all my credit cards which everyone has been eager to do. What I need to do now is re-establish my credit again since everything went to collection. What credit card do you recommend I apply for? Can I even get a credit card with my credit scores the way they are now?


Bob Lutz

A:
Hi Bob,
Sorry to hear about the real estate affecting your credit report. You are not the only one that has felt the affects of what has gone on in Real Estate. Since you are settling on your debt currently your credit score will eventually go up. Make sure that you get letters from these creditors stating that you have settled on all your debts. I just thought I would mention this. In order to get a credit card, you will more than likely need to apply for a secured credit card it does not sound like Credit Card Company will extend un-secured credit to you for while with all the recent credit card collections. Go here and select the Orchard Bank credit card. This is a low fee secured credit card. Also under the creditscorequick.com/reward_cards site there is a button for bad credit credit cards. You might also select one more within that link. You really need a couple new cards to get your credit in the right direction again.

CreditScoreQuick.com

How old should you be before getting credit cards?

Surely our credit card companies have learned from extending credit to people in general. Extending credit to adults vs. extending credit to kids is there any difference? I would assume with the way credit reports look these days, there is not much difference. Adults are failing to pay back credit card debt just like our youngsters. Is it because of a lack of education, have we failed in this area? Once you get a credit card whether you are a young adult or older should you charge a vacation on it? Is it ok to buy a TV, stereo, and furniture if they are offering 12 months no payments and no interest on credit? These are some questions being asked everywhere. I think the banking industry missed something by offering got ahead and get now and pay later. If you are young and have not been taught about credit cards you can get in trouble with all these sales pitches real quick.

If you are on your way to college, and get offered student credit cards should you accept them? I personally believe that you need to start building your credit once you hit 17. That does not mean you get full access to your credit cards. Parents need to teach there kids about proper credit card management. If you go out and charge something on your credit cards you need to be prepared to pay it off that month, no exceptions. If you charge something on your credit cards and can’t pay it off that month you are living beyond your means.

With all the changes in how Fair Isaac calculates credit scores now, if you are young and just starting out there are two ways to establish credit.
· Secured Credit Cards
· Student Credit Cards

If you decide to go to college it will be pretty easy to get a student credit card. This is a great way to start the credit building process on your own. If you are not going to college, then secured credit cards is the other option. Secured Credit Cards do require a deposit from you, but it will get the credit building process going for you. Once you have a good 12 month payment history you will start getting all kinds of pre-approved credit card offers. Remember this and don’t forget, “Don’t charge more on your credit card than you can afford to pay off that same month.” If you spend carelessly on your credit cards you will find yourself in debt real quick and debt is like a dark cloud hanging over your head.

I personally believe there needs to be a credit education course in our schools now, to better educate everyone about the consequences of mismanagement of money. Id you don’t learn how to manage your money properly you will find your self either filing bankruptcy or debt consolidation at a early age. These types of situations will ruin your credit reports and credit scores.

Having credit is a fact of life and everyone needs to be aware of the affects of credit card debt.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Secured Credit Cards: Your way out from between a rock and a hard place.

No credit can sometimes be just as damaging to you as “no-good” credit.

It sounds crazy, and many who have always responsibly paid cash for everything become more than a little angry when told they can’t get a mortgage loan because they have no credit. At least folks who have had bad credit know the reason why they’re having trouble.

The fact is, if you have no credit, lenders have no way to determine if you’re a responsible bill-payer. You have no reputation - no history to offer to show that you do indeed pay your accounts on time. That makes them nervous.

If you find yourself in the position of needing to either build or re-build credit, you’ve probably been told that you must first establish a record of paying debts on time – by getting a line of credit somewhere.

Where? Who is going to give you that line of credit? A company that offers a secured line of credit, that’s who.

In this instance, you offer some kind of collateral or deposit for the amount of credit desired. This gives the lender security in case of default. It could be a deposit into a savings account, a certificate of deposit, or a money market account.

Secured credit cards are a very effective way to build or re-build credit, but there are two things you must consider.

First, use the line of credit, but pay it off on time each month. Don’t use it to go further in debt. The goal here is to show a history of responsible money management. It might be tempting when money is tight to just let the lender take your security – but that will only serve to damage your credit score.

Second, look before you leap. Different lenders have different policies, so investigate each one you’re considering. Read the fine print and ask questions. Make sure you understand the interest rate that will be charged if you don’t pay the balance in full each month. Learn their grace periods, their penalties for late payments, and any other fees that may be associated with your account.

After 6 months to a year of responsible use, many lenders will increase your limit, which will further improve your credit score. When you continue to pay off the balance each month your credit repot will show that you have more credit available than you are using, and you will be seen as a responsible money manager.

Author: Marte Cliff

CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Credit Reports in other countries don’t transfer to the U.S.

If you are getting ready to move to the United States and will need a loan, you will have trouble. Let’s assume you live in the Canada and have good credit there, that credit is not transferable to the United States. The credit report building process will start all over. Coming to the United States is a dream for most, but once you get here you will need to rebuild your credit all over again. The reason for this is the U.S. is not synched up with other international credit report systems. Not having credit is tough and costly. Here are the steps so you can get the rebuilding of credit in place.

Immigrants studying here
If you are here in the U.S. and are attending college you can apply for a student credit card. Students with no credit are able to get credit easier than someone with no credit that is not is college.

Secured Credit Cards
Secured credit cards are credit cards that you secure with your own money. They usually will require around $300 put into the bank of there choice. The reason this is a good way to build credit is once you make a deposit required by the bank, the credit starts reporting to all 3 of the United States Credit Bureaus. This really is the only way to establish credit without any credit at all.

How long it takes to get credit
Once you have got a couple of credit cards after 6 months of report to the credit bureaus you will establish credit scores. At that point you should start getting other credit offers.

Check your credit
As you are moving along with this entire process make sure you pull your credit reports with scores to see your progress. You should pull your credit report every 4 to 5 months.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

How immigrants can build credit

If you are new to the United States because you just arrived from another country, welcome. In this article I wanted to discuss how you can establish credit as a new citizen of the United States. People from all over the world come to the US to pursue the American dream. Some come here to study and then go back to their country. What every your situation is, as long as you have a social security number I can help you establish credit scores. When arriving to America the first thing you need to do is get your credit established. Here are tips to get this going.

Rental & Utilities
I would hope by now you have a job, so you can show someone that you are paying some sort of rent. Rental is part of the credit building process. Credit Card companies and banks want to see that you are paying rent to someone. This also allows you to get your utilities in your name. Paying your light bill, electric bill, and phone bills are part of the credit building process. Make sure you pay all these bills on-time.

Work History
Make sure you have work history. Obviously if you are applying for some type of credit the creditor wants to see that you are working to pay back any debt owed.

Open a checking account
Having a checking account is a standard question on loan applications. This shows the creditor you might be responsible with you money.

Open a savings account
Having a savings account shows that you have the ability to save incase a emergency should arrive. Most creditors like to see this in place.

Apply for a secured credit card
There is no quicker way to establish credit scores than with a secured credit card. These types of cards require a deposit by you in designated account by the card issuer. Typically the balanced required by you is anywhere between $250 and $350. Once you have secured a credit card, this begins the credit building process on your credit report. Typically I recommend 2 cards to get the credit score building process underway.

Student Credit Cards
If you are here studying you should apply for a student credit card also. This card is much easier to get if you are in college. This card does not require a deposit, but is considered a sub-prime card with higher interest rates. This card is a great way to get your credit established as well.

After six months of paying on a couple credit cards with no late payments you will be scored on your credit report. You might also consider getting a small car loan as well. The credit scoring process likes to see a mix of credit reporting on your credit report. This process mentioned will get your credit underway fairly quickly. Remember to be responsible with your new credit and never be late on anything.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Understanding your spending habits can be rewarding

During this day and time credit cards can have two affects on your credit score reports. If you don’t have credit cards it can affect your credit score in a negative way. If you have credit cards and charge over 30% of the allowed credit limit this will affect your credit score in a negative way as well. Credit cards are part of the credit scoring process. You have to have them in order to have good scores. Part of the FICO score model looks at your mix of credit. Part of the mix factor is having credit cards revolving on your credit report. Credit cards are part of the credit building process. You have to have them, but need to be responsible with them. Here are some advantages of some credit cards.

0% offers
Some department stores will offer you 0% or low interest to buy there products. If you pay off the debt owed in during the allotted time to maintain that interest, this is like borrowing money for free.

Cash Back
This is a interesting offer with the credit card companies. Some card companies will give you back 1% on all purchases. So if you spend $100.00 they will give you back $1.00. Some credit card companies will give you discounts on items purchased. So the idea is for you to spend money, but if you manage your money correctly it can be rewarding for you.

These are some tips on how credit cards can be rewarding, just make sure you pay off the card so you don’t get high interest rate charges.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Why you need credit cards.

Did you think you could go through life without credit cards? How has it gone for you so far? I would be willing to bet you cannot rent a car, reserve a hotel, or buy anything on the internet. There are tons of other situations that with no credit card you cannot participate in. In order to have a good credit report you need credit cards. If you are at the gas store buying gas, you have to go inside the store and wait in line to pay without a credit card. The credit card just simple makes some situations more efficient.





Build Good Credit
Credit cards are a big part of your credit score. When the credit scores are calculated, credit cards are a part of the scoring process. In order to have good credit you must acquire at least a couple of credit cards. If for some reason you don’t have the credit to get un-secured credit cards, then you must apply for secured credit cards. Regardless of what you qualify for, you need to get at least a couple of cards to get things rolling.

Emergencies
If some medical emergency comes up and you don’t have the money to pay for it, you can use your credit card to cover the cost. If your car breaks down and you don’t have the money to pay for it, you can use your credit card to get your car fixed. Credit cards are great to cover those situations that sneak up on you when you don’t have to money to pay for.

Rewards
If you travel a bunch you can take advantage of travel rewards that some credit card companies offer. With these reward if you travel frequently you can rack up enough rewards to travel for free. You can also use these rewards to buy other products like vacation packages at a discount.

Life during this day and age without credit cards is like having no security. Sometimes situations come up that require borrowed money, and a credit card is a great way to cover circumstances beyond your control. Some credit cards offer 0% interest or low APR that makes it worth charging. At times you can practically borrow money for free on credit cards.
It is very important to remember to be very responsible with credit cards. If you charge on a credit card for leisure make sure you can pay it off that next bill. You can get in trouble with credit cards real quick. So make sure you are responsible with your card.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Denied for credit card Q & A

Q:
Hello I have been trying to establish credit after a divorce my credit has been ruined. I have tried applying for different credit cards. I have been denied for all of them due to my credit score report. What do you guys recommend I do? I need a couple credit cards to get some credit going. I currently don’t have any credit at all. Most of my good credit went south during a nasty divorce.

Lucy




A:

Hi Lucy,
We are sorry to hear about the divorce. This type of history is all too common after divorces. If you have applied for un-secured credit cards and been denied then you must start out with secured credit cards. Secured credit cards are where you give the bank usually between $200 and $300 in a bank of there choice to secure the credit card. Secured credit cards are the quickest way to establish credit. After good history you will start getting all kinds of credit card offers in the mail.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

How no Credit can hurt you

What is all the fuss about paying cash for everything? Isn’t that a good thing? If you pay cash for everything doesn’t that mean you don’t owe anybody? Quite contrary to popular belief this actually hurts you. Let’s assume you pay cash for everything and all the sudden need a loan, it will be hard to get a loan with no credit. You will have not any credit scores generated with the credit bureaus with no credit being extending to you. I have heard quite often that I pay cash for everything because credit cards scare me. But let’s face it, we are all adults and can do anything we put our mind to. In our current society banks now use a automated software created by My FICO that determines your credit score and risk. If you have never borrowed money or applied for credit this software has not generated any credit history or credit scores for you. This is exactly what the banks currently look for.

Applying for Credit
Let’s assume you decide to go and apply for credit, only to find you are getting denied because you don’t have any credit. There is a solution to this that is quite simple. You get a secured credit card. A secured credit card is cards where you deposit your own money usually up to $300 dollars into an account of the banks choice. Once this money is deposited about 30 days later the credit card company will report this history to the credit bureaus. This is the first step in establishing credit scores and credit history. I recommend getting two cards to have two lines of credit history reporting. Remember to pay everything on-time so you don’t have any late payments. This is very important. Also these secured credit cards usually charge fees to get started, during the beginning of this process you will have a balanced owed even though you have not charged anything. Make sure you pay these fees. The secured credit card we recommend is the Orchard Bank card. This card has low fees and is great for establishing good credit when you have no credit.

Now that you have put your cash only days behind you, you can join the rest of America in the world of credit. Your credit is so important these days that you can’t afford to live a cash only life. Employers, utility companies, and insurance companies and just about everyone is pulling credit to see if you are responsible or not. So there is a good chance you were paying higher fees because of your lack of credit. As you move on long with the credit building process make sure you pull your credit regularly. Pulling your own credit report does not affect your credit score. Pulling your credit report regularly is good credit management.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Closed credit card accounts Q & A

Q:
Hi Mike,
I have closed 2 credit cards that I have not used in years. I have 3 other credit cards that I use with lower interest rates and fees. That is the reason I closed them. I was reading through some of your articles and noticed you recommended not closing out credit cards. How much do you think this will affect my credit score? I currently have excellent credit and hope I did not mess up my credit score.

Marcus

A:
Hi Marcus,
Yes I am against closing out good credit reporting on your credit report. This does affect your credit scores, because you just got rid of good credit. Typically you will see around a 10 to 15 point drop in your credit scores. Since you have other credit cards this should be temporary. Just make sure you keep your credit card balances below 30% of credit limit. My FICO recommends a mix of credit as well. For instance credit cards, car loans, installment loans, etc…….Good luck to you.

Mike Clover

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Bankruptcy Q & A

Q:
Hello,
I have a question in regards to bankruptcy. I have just recently discharged my chapter 13 bankruptcy. I was curious how long it will be on my credit report. I have looked all over the web and found different answers to this. I also was curious what was recommended to re-establish some credit. I currently don’t have any credit reporting on my credit report. The bankruptcy said I should be able to re-establish credit right a way.

Thanks,
Julie

A:
Hi Julie,
Thanks for the question. Bankruptcy can be confusing at times with how long is stays on your credit report. Chapter 13 bankruptcy will be on your credit report for 7 years from file date. You will need to check your credit report because the bureaus usually don’t update this properly. After filing bankruptcy and it has been discharged, getting your credit rebuilt is your next step. The best way to do this is with secured credit cards. You can go to our credit card tab and apply for some credit cards there. We recommend Orchard Bank Card as your first choice. You should have at least 2 credit cards to get your credit scores boosted.

CreditScoreQuick.com

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Secured Credit Card Q & A

Q:
Hi Mike,
Your website is great. I applied for the Orchard Bank secured credit card. I was wondering how long it might take to get in the mail. I also wanted to know how long it will take to report to my credit report. Your website has really helped me get in the right direction because my credit report is pretty pitiful. Thanks for the free credit repair resource. I am telling everyone about this wonderful site.
Gene

A:
Gene,
Thanks for the compliment; we are striving to provide the top resource on the web for free credit repair advice. Your secured credit card should arrive in the mail within 30 days. Your secured credit card will also start reporting within 60 days of approval. Good luck with your credit report repair through our site.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Secured Credit Cards-Which one to choose.

Secured credit cards are going to be more widely used since FICO changed allowing authorized user accounts in the scoring process. At one time you could ride someone else’s good credit to establish credit scores. If you currently do that, it does not help you what so ever, according to Fair Isaac it could hurt your credit score. So if you have no credit and need to re-establish, there is no quicker way to get those scores increased other than secured credit cards. You are probably asking which one do I get. Just about all the banks provide a secured credit line, but believe it or not you can still get denied. That does not make sense does it? Well it’s a fact, but with CreditScoreQuick.com Orchard Bank card offer, you will get approved. If for some reason they deny you, our Millennium card does not pull your credit report. It’s a guaranteed approval.

Our first pick
Orchard Bank Cards are a great way to establish credit, and their fees are relatively low as well. If you have had problems in the past, go ahead and apply for a secured credit card today, to get the credit score recovery process underway. If you don’t have any credit, this is the quickest way to get a credit score. It will take about 6 months to get your scores, as long as you are not late on any payments.

Second Pick
Ultra VX
-Credit-On Demand*: Up to $25,000 Credit Line
-Instant Approval: No Credit Check, No Minimum Income or Bank Account Required.
-Credit Reporting:Reports to Major Credit Bureaus.
-Clear Rewards*: American Airlines, Southwest, JetBlue, Marriot, and more. No restrictions!
-Powerful Account Features: Direct Deposit, Bill Pay, Free Alerts, Add Cash Instantly at 100,000 retail locations nationwide.






These are a couple of good secured cards to start out with. We also have a link to some other cards as well. Go here:

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

No Credit is better than Bad Credit.

No Credit is better than bad credit, and you can take that to the bank. There are lots of people out there that are scared of credit cards, because they don’t know how to manage them properly. They are so scared of debt they pay cash for everything. But there will come a time where you will need to borrow money, and a creditor will ask you that magical question, “What is your credit score?” In order to function in today’s society you need good credit scores. Yes, no credit is better than bad credit, but good credit is better than both mentioned. It’s easier to establish good credit, than it is to remove past credit mistakes on your credit report.





Here is a question from one of our readers about no credit scores.

Q: Mario Lopez asked:
Hello I am 25 and I have no credit scores, I was brought up not to trust banks. But I am finding out that if you are not rich, you will eventually need loans. Loans are tough to get when you don’t have any credit. What is the quickest way to get credit scores, and how long does it take. What methods would you recommend in establishing credit?

A: CreditScoreQuick.com
Establishing credit is actually pretty easy Mario. The first step is to get a couple of secured credit cards. We recommend Orchard Bank on our website. This credit card is secured and typically requires a deposit of $200.00 dollars or so in a account they require. There are also other cards on our site you can apply for, which are secure as well. The reason secure cards are the way to go, is because they start reporting credit to the bureaus fairly quickly. It takes about 6 months to establish credit scores with the credit bureaus. Typically when you don’t have scores no one will extend credit to you. Secured credit card eliminates this problem and gets you well on your way to building a good credit score. Make sure while you have this credit card you are never late on your payments. Late credit card payments will cause bad credit. Use your credit cards responsibly. As time goes on you will get other credit card offers in the mail with good credit history in not time you will have establish the scores you need to get any loan at your disposal.






Bad Credit
If you have bad credit, you might be a year from getting the credit you need to get loans. Also you have negative credit reporting on your credit report for 7 years. So you can see how it’s better to have no credit as opposed to bad credit. It’s much easier to establish good credit than it is to clean up a credit report littered with collections and slow pays. So if you are not sure where you stand, it’s very important you get a copy of your free credit score report today, because an educated consumer saves.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Credit Score improved by using credit cards

The credit score is key to your financial health. With all the different avenues to get your score these days, there is no reason to not be educated about your credit report. I get lots of question about closing credit cards, and if that is a good option, especially if you are not using them. Here are some question from some of our readers about closing credit cards, and if it will affect your credit score.





Q: John Miller, asked:
I have 5 credit cards and only use one of the cards regularly. I keep the other 4 cards in my safe. I was wondering since I don’t use them should I go ahead and cancel those cards? One of the cards has a annual fee of $35.00 even though I don’t use it.

A: CreditScoreQuick.com
Hi John, you don’t ever want to cancel a credit card, that is like getting rid of good credit. What you should do is use each card about every 5 to 6 months. If you have good credit cards just setting in your safe more than 6 months without any use, the creditor might expire the card. So you want to make sure you use the cards and pay them off each month.

According to Fair Isaac, the creator of FICO scores, you should have a couple of credit cards. FICO scores are calculated by a mix of credit. So if you cancel a credit card, there goes two things, good credit that was reporting on your credit report along with a mix of credit as well.





Here is another question we had about credit cards and credit scores.

Q: Alex asked:
I have two credit cards, and would like to increase my credit score; I currently have a credit score of 675. I want to increase my score if possible; I am getting ready to buy a car, and would like the best rates on a car loan. One credit card has a balance of $6500 and another card with a balance of $3300. The first card limit is $15000 and the second is $10,000. What should I do to get my score increase as quick as possible?

A: CreditScoreQuick.com
FICO recommends that you keep your balances below 30% of the allowed credit limit. It looks like your credit card balance on the card with a $15000 dollar limit is high. This is more than likely dragging down your score. I would pay down that card, and it should increase your credit score.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Top ways to lower your credit score.

I think we focus so much on how to increase credit scores, we forget about what will lower your credit scores. In this article I will discuss what could lower your credit score and how to avoid it.

Late Payments
This type of activity on your credit report will destroy a good credit score. Typically when you are late on a obligation, you credit score will drop 100 to 150 points. Remember this only applies to obligations that report to the credit bureaus, not electric bills, car insurance, cable bill, or any utility bill. That does not mean stop paying them, because if you do that they will put the account in collection which ultimately will have the same results on your credit score. So don’t be late on anything.

Credit Cards Maxed out
If you have credit cards that have reached their credit limit, you score just dropped. According to FICO your credit card balances should stay well below 30% of allowed credit limit. You really should only charge on your credit card what you can pay off that month. IF you are not careful, you could find yourself needing debt consolidation because you cannot afford all your credit card debt. Make sure you keep your credit card balances low, and only use your credit cards for small purchases that you can pay off that month.

Co-Signing for someone
This is a huge problem, we all love to help out family and friends, but this is a big NO NO. Don’t ever co-sign for someone, because if they are late on a payment, guess who’s credit scores will suffer? That’s right; your credit score will suffer, because of their mistake. I see credit reports with this type of activity all the time, and it could also keep you from qualifying for a home, because that debt is really your responsibility even though you co-signed. So don’t make this costly mistake, if someone does not have the credit to buy, tell them to go to CreditScoreQuick.com to get advice on what to do.

Credit After a divorce
This is another huge problem, people getting divorces and even though the divorce decree clearly states the other spouse is responsible for the debt, it stills shows on your credit report. So if the other spouse runs into problems and is late on the payment it will affect your credit score report as well. Make sure when you file the divorce before its final the other party gets all obligations refinanced and out of your name or it could affect you in the loan run.

As always we recommend you get a recent copy of your free credit score report to make sure none of this is going on. Remember your credit is your life.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Best Credit Card to increase Credit Scores

Secured credit cards or unsecured credit cards are the two types of credit cards out there for consumers. There are different credit cards from all types of banks, and sometimes can be confusing on what card to choose. We work in conjunction with some companies that help restore credit, and the first step with these companies to get the credit building process started is to get some secured credit cards for their clients. In this article I am going to discuss a couple popular credit cards for increasing credit scores for people with no credit, and for those who have had bumps and bruises on their credit report. You might think credit cards are what got you in trouble the first time; well unfortunately they are necessary for credit health with today’s credit scoring models.



Continental Finance MasterCard®
Continental finance master card is a great card for individuals that have been turned down elsewhere. Here are some key points about this second chance credit card.
Get a second chance if you have less than perfect credit. If you have been turned down for credit recently because of your credit score, Continental Finance is here to help you with the second chance you’ve been waiting for. Apply today!
• Get Your Application Results in Seconds
• Monthly reporting to the Major Credit Bureaus
• Free Online Access
• Excellent Online Tools for Managing Your Finances
• Semi-Annual Credit Limit Increases
• No Minimum Monthly Income Requirements*
• Unsecured MasterCard Accepted at Millions of Locations Worldwide

Orchard Bank Card
Secured credit cards are sometimes the way to go, if you cannot get a unsecured credit card. Orchard secured credit cards is one of the most highly trusted banks for rebuilding your credit and for those that have no credit.
If you're looking for a card with built in benefits you can use on a daily basis and that provides you with the opportunity to establish better credit at the same time, you may be interested in the Orchard Bank Cards. Over the years, millions of people have used these Platinum, Gold, Classic and Secured cards to build their credit history. As a cardmember, you'll also enjoy acceptance at millions of locations worldwide, including website purchases and reservations, account information updated and at your fingertips 24/7, email and text messages to remind you or your upcoming payment due date with online enrollment. Apply Today !

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Establishing Credit Scores, how long it takes.

Establishing a credit score is closer than you think. Whether you are new to the country, or young trying to establish credit, I will discuss in this article exactly how long it takes. I will also discuss what it takes to establish credit scores. What has worked in the past no longer works with the new Credit Scoring process. The reason for this is it was changed this year with Fair Isaac whom is the originator of the FICO score model. This FICO score model is what 80% of the largest banks currently use to determine your creditworthiness. Here is the first step in establishing a healthy credit score.

Secured Credit Cards
In the past your parents could have put you on their credit card account as a authorized user. Once they did this the credit card would start reporting to all 3 credit bureaus on your behalf. This would immediately start the credit score building process for you. According to Fair Isaac this is no longer the case. Due to fraudulent activity in the credit repairing industry they stop the positive credit building with this process in their FICO score model. So with this being said, you have to take other measures when you don’t have any credit. This measure is secured credit cards. A secured credit card is where you secure the line of credit with a bank, usually a cost to you around $200 to $300 dollars. This money is put into an account with the secured credit card bank. Once you put money into the account designated by the card company, you instantly start the credit score building process. There is not a quicker way to build credit in today’s credit world, unless you are college student. Then you can apply for a student credit card. These cards are usually easy to get for individuals that are currently in college.

Credit Scoring Time Frame
The time frame to establish credit scores with the 3 credit bureaus is usually around 6 months. Once you have secured a couple of secured credit cards, you can expect to get a credit score as long as you are not late on monthly payments in 6 months. It is very important to make sure you are never late on any obligations that reports to all 3 credit bureaus. If you are late, you can expect a 100 to 150 point drop in your credit scores. So you definitely don’t want to have any late payments period.




Car loans
Auto loans are a great way to establish credit as well. Maybe once you have got a secured credit card or two going, I would recommend getting a car loan as well. This will give you a mix of credit for long term credit score growth. Getting a car loan is not as easy as getting a secured credit card, but you should be able to get a car loan after you have established some secured credit with some payment history.

With credit tightening up all over the board, the best advice I can give is to make sure you pay everything on-time and don’t over extend yourself. This is a common problem, and it can sneak up on you very quickly. Be responsible and live your life well.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

How credit card debt can affect you?

Credit card debt is a increasing problem in the United States. The credit card companies over the last 10 years have been extending credit to everyone. Yes credit cards are necessary for credit reasons, but it is very easy to over extend yourself real quick. In order to have good credit scores the FICO score model likes to see a mix of credit which includes credit cards, but if it notices you overextending yourself your credit score will drop. So the idea is to be responsible with your credit cards. A good rule of thumb is to charge only what you can pay off that month. If you have found yourself in a world of credit card debt here are some tips on what you can do.

Credit Card Debt options
• Pay only minimum payments on all credit cards with the lowest interest rates
• Pay as much as possible on the one card with the highest interest rate. If you can pay $200.00 a month on it, pay that amount. You will pay off your debt quicker if you just pay down on one card as opposed to applying the $200.00 equally among all credit card debt. This is a common mistake.
• Look into debt consolidation programs
• Look into a chapter 13 as a last resort

What credit cards to look out for
Credit cards can be rewarding if you mange them properly. For instance you can charge on some cards and get rewards to buy other merchandise. America Express has these features, and so does discover card. Some of these cards offer low introductory rates for a period of time. All of this is contingent on your credit score and credit history. Some credit card companies offer airline miles, this is a neat perk if you travel a lot. There are lots of reasons to have a couple of credit cards, and there are lots of reasons not to as well. The point is to make sure you are responsible with the credit that has been extended to you. With this responsibility there are added benefits of charging and paying off your credit card debt every month.

What credit card debt could affect in your life
• Your ability to save more
• Your credit score
• Ability to retire early
• Ability to take vacations
• Ability to save for your kids college





Credit cards are a necessary but make sure you manage them properly or they could take over your life. If you don’t have any credit cards go ahead and apply today for a credit card that will reward you for your spending habits. Remember your Credit is your life.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Proposed Credit Card and Banking Regulations

It looks like the government will be getting serious about credit card regulations. The Federal Reserve Board proposed rules to prohibit unfair practices regarding credit cards and overdraft services that would among other provisions, protect consumers from unexpected increases in the rate charged on pre-existing credit card balances.

Regulation AA (Unfair Acts or Practices)
The proposal would amend Regulation AA to prohibit unfair or deceptive acts or practices by banks in connection with credit card accounts and overdraft services for deposit accounts.




Credit Cards

• More Time To make Payments. The proposal would stop banks from treating a payment as late unless the consumer has been provided with reasonable amount of time to make that payment. There would be a new safe net for banks that send periodic statements at least 21 days prior to the payment due date.

• Allocation of Payments. When you have a credit card with different balances (for example, purchases, and cash advances), typically the annual percentage rate (APR) is higher on the cash advance. When you make a payment on a scenario like this the bank will apply your payment to the lower of the two. With the new regulation the payment will be split equally amongst the two balances. In addition, to enable consumers to receive the full benefit of discounted promotional rates (for example, on balance transfers), during the promotional period payments in excess of the minimum would have to be applied first to the balances on which the rate is not discounted.

• Two-Cycle Billing. The proposal would stop banks from imposing finance charges based on balances on days in billing cycles preceding the most recent billing cycle. Credit card issuers will not be allowed to use previous billing cycles to calculate interest on your current bill. Current double cycle billing uses the average balance from the previous two months to calculate interest charges, even if you paid part of the previous balance.

• Rate increases to existing balances. Credit Card companies will not be able to increase you APR on existing balances, unless you had a promotional offer and/or was late on a payment

• Less bait and switch credit card offers. The proposal would require banks making firm offers of credit advertising multiple APRs or credit limits to disclose exactly what the qualifications would be for those terms.

• Finance of Security Deposits and Fees. The proposal would address concerns regarding subprime credit cards by prohibiting banks from financing security deposits and fees for credit availability (such as account-opening fees or membership fees) if charges assessed during the first twelve months would exceed 50 percent of the initial credit limit. The proposal would also require financed security deposits and fees exceeding 25 percent of the initial credit limit to be spread over the first year.

• Credit Card Holds The proposal would prohibit banks from imposing a fee when the credit limit is exceeded solely because a hold was placed on available credit. This can occur where the final dollar amount of a transaction was not known in advance (for example, when a consumer checks into a hotel, a hold is placed for the expected cost of the stay).

Overdraft Services

• Debit Holds This proposal would stop banks from charging a fee when an overdraft takes place to due to a hold placed on available funds in an account.

• Right to opt out The proposal would stop banks from imposing a fee for paying overdraft unless the bank gave the consumer an opportunity to opt out of the payment of overdrafts and the consumer has not done so. This would apply to all transaction types. This would also be applied to overdrafts resulting from ATM and point of sale transactions.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Student credit cards

Student credit cards are a great way to get the credit going, especially with the changes to authorized user accounts. In recent articles I talked about how FICO® score has changed the way it looks at your credit when it comes to authorized user accounts. For years parents would add their loved ones to a credit card to help them build credit. Unfortunately due to scams of people selling their credit for profit, Fair Isaac put a stop to authorized accounts being a benefit to your credit score. It actually will hurt your credit scores to be authorized user now. So if you are a student you can apply for student credit cards to help out with the credit building process. I wish I had known what I know now about establishing credit. It’s really not that hard to get your credit history going. Here are some tips on what you don’t want to do with your new student credit card.
1. Don’t be late with payments
2. Don’t charge over the limit allowed
3. Be responsible with your buying
4. Keep your credit card in a safe place






Be responsible
College is suppose to be a fun time in your life, and when you get done more than likely you will get a career going. The last thing you want to do is mess up your credit with bad credit card debt during your college years. One reason is when you start looking for a job, most companies are pulling credit reports to see what your credit rating is. Life is just much easier when you manage your person credit properly. I can stress how important it is to pay your credit card bills on-time. So once you get your student credit card, make sure you think about the future and not just the present.

Bad Credit Credit Cards
If you get turned down for a student credit card, you can always get a secured credit card. Orchard Credit Cards are a great way to establish credit if you cannot get a unsecured credit card. With a little history of having a secured credit card you will begin the credit building process. There are also other credit cards that are called sub prime credit cards, they have higher interest rates, but they will approve you so you can establish credit as well. Don’t let the word high interest scare you, as long as you pay off the card every month, you will be fine. Just make sure you are responsible with your credit cards.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Improve your credit score before it’s too late

Your credit score is everything these days. Maybe you are just one of those individuals that would rather not know what is on your credit report. Let’s assume you just got laid off, and now you have to find a job. Guess what employers are doing now, they are pulling your credit report to determine your risk. Typically people with good credit are not going to steal; they seem to have their life in order, etc……according to corporate companies. So if you have had some bumps and bruises on your credit report this is the time to get a recent copy of your free credit score report and start working on your credit. Here are some pointers on what is needed to increase your FICO score.

Secured Credit Cards
If you don’t have any credit and your current credit report is littered with collections and charge offs, you will need to establish new credit. Yes I know credit cards are evil, but they are a necessary evil these days. I would recommend getting some secured credit cards with Orchard Bank. They are a credit card bank with low fees, and typically require a $200.00 deposit into there account to secure the card. This process will get some good revolving credit reporting to all 3 credit bureaus on your behalf. Typically you need a couple of credit cards reporting. So go a head and get a few different secured credit cards. Since authorized user accounts don’t help anymore, secured credit cards are the quickest and most reliable way to get your credit
established or re-established.






Collections Accounts
There is a common misconception that collection accounts can be removed even though you owe them money. A collection account will not go away until the account is set to expire, which is 7 years from the collection date. That is a long time to wait for something to disappear on your credit report. The fastest way to get your scores up with collections is to pay off the newest collections first. I guarantee you once the account is updated from a balanced being owed to “paid in full” or settled, your scores will go up. Once you pay off the collections make sure you get letters from the collection companies stating what was done, either paid in full or settled on. After about 60 days re-pull a copy of your credit report with scores and make sure they updated with the credit bureaus.

Quick Credit Fixes
Folks there are no quick fixes to credit repair, Fair Isaac shows that in their FICO® score model that time is also part of the credit scoring recipe. Yes there are some tricks I know that will get your credit sores up, but time is also a factor as well. The main key is to make sure you don’t have late payments while you are doing this entire process, make sure nothing goes to collection. The banking industry will never be same again because of the amount of mortgage foreclosures. I guarantee you the lending industry is tightening so much currently that families with good credit could have problems getting loans. So make sure it’s not too late, if you are getting ready to make a big purchase like a new home for the family, make sure your credit is in line with today’s times. One thing I know for sure, and that is the lending institutions are going to get even tougher. So instead of getting told NO, get told YES.




About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Fico Scores dropped by Authorized user accounts

The FICO credit score model is being changed and implemented during the first of this year. Your FICO score will no longer be determined by being an authorized user on someone else’s credit card account. So in other words piggybacking someone else’s credit no longer helps you.

So if you are an authorized user on somebody else’s credit, you will more than likely see a change in your credit scores.

Adding a friend or family member to their credit card has been longed used by a lot of people to help someone they know establish credit. Many parents over the years have added a child to one of their credit cards to help them establish credit. Unfortunately this is not a good practice to follow anymore.

Credit repair companies were using this system as a way to sell authorized user accounts and piggy somebody else’s good credit to improve their credit score. This credit loophole is the motivation for Fair Isaac to shut down this process in the FICO score risk model.






How this will affect you:
1. Those of you that are new to the country or just starting out with credit will have to establish your credit with secured credit cards.
2. If you are getting married and you were thinking of closing your accounts and being added to your spouse’s accounts, you might re-think this again.
3. Once this change takes affect, their will be no value towards you being a authorized user on anyone’s credit card account.
4. It is possible your credit scores could go down significantly because of this change.
5. If you have been paid to rent out your credit card account you could be committing fraud. It would be advised to stop immediately.
6. If you have been paid to have your name added to someone else’s credit card as a authorized user it is possible you are defrauding lenders. It would be in your best interest to have your name removed as soon as possible because doing business with these companies is a violation of state and federal laws.
7. If you are getting married and you don’t have any credit cards where you are primary or joint account holder you might want to open a couple of credit cards in your name.
8. Women are more likely impacted by this than men because more times than not women are authorized users on their husband’s cards.


Hopefully this has shed some light as to how the changes to the new FICO score model will affect you in the near future. If you are new to the wonderful world of credit, now may be the time to apply for a secured credit card to get matters underway of establishing a good credit rating. Or maybe you are new to this country the same process applies.




About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

How to establish Credit Scores.

Establishing credit scores or more attainable than you think. If you are new to the credit scene I am sure you have heard how important it is to establish high credit scores for better rates and terms on loans. Heck even employers are pulling your credit to determine how responsible you are based on your credit history. In this article I will give step by step instructions on how to establish credit quickly.

Secured Credit Cards
Secured credit cards are one of the quickest ways to get a credit score. A secured credit card is a card where you deposit money into a account that the bank designates for you. Once the money is deposited into the account at that point they issue a credit card that will report to all 3 credit bureaus. The deposit that is required is typically around $250.00 dollars of your own money. With good payment history you will start getting all kinds of credit card offers. You want to make sure you are never late on a payment; if you are your credit score will drop around 150 points. After a late payment has taken place you just defeated this entire process. Also make sure you keep the balanced owed less than 30% of your credit limit. Typically if you charge up your card below 30% of balanced owed your credit score will increase. You also want to make sure you have at least 2 secured credit cards. Orchard Bank Card is a good secured credit card with low fees.

Checking Account
Make sure you are main stream and you deposit your money into a checking account somewhere. When getting a loan all banks want to see what you are doing with your money. It would not hurt to have a savings account at the same bank as well. When you attempt to get a mortgage, one of the needs items a loan officer will ask for is a history of your checking account and any savings you might have. Checking accounts are a sign that you are taking responsibility of your money.

Rental History
Make sure you are renting a house or apartment. This is a great way to establish credit. Lenders look at this as well. They want to make sure you can pay rent on-time as well. It looks better to be renting as opposed to just living with someone rent free. Most lenders like to see at least 24 months residence history with 12 months rental verified.

Utilities
Your utilities need to be in your name. Make sure you don’t put them in someone else’s name.

Student Credit Cards
If you are a student, part time or full time, student credit cards a great way to get credit established. You don’t even have to be at a major university, it can be your local community college.

Auto Loans
Auto loans are a great way to establish credit scores. Usually auto loans are easier to get than most loans. This type of loan will report to all 3 credit bureaus as well.


Everything that was mentioned in this article is what it takes to get credit scores established so you begin your journey with credit. Remember to make sure you are never late on anything. Good luck.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secured credit cards, student credit cards , mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Fast Free Credit Report Repair

Credit Report Repair is a huge business currently. There are credit repair companies opening up all over the U.S. With all of the credit issues our country faces as a result of foreclosures, high credit card debt, loss of jobs and an economy going into a recession, credit repairs companies are having a field day. According the FTC most credit repair companies prey on the desperate in hopes of a miracle. The FTC claims that self help is best.

Check your Credit Report
Don’t worry checking your free credit score report does not affect your credit score. The first step after you have had some issues in the past is to pull a copy of your credit report with all 3 credit scores. This type of report will show you what is on there. That way you can start the negotiating process. Contrary to popular belief, you cannot get collections; charge offs, judgments, foreclosures, or slow pays removed from your report. Alls of these types of derogatory matters stay on your report between 7 to 10 yrs.

How to negotiate
Once you have pulled a copy of your credit report with scores, now you can determine which collections to pay off. Always start with the small collections. If you have a collection that says you owe $450.00 to OSI, which is a medical collection company, offer them $150.00. Make sure if you offer them a amount you can afford you follow through with the agreement. After you have come to an agreement, ask for a letter to delete from the Bureaus. If you are able to get a letter to delete from the bureaus, then you can send this letter to all 3 credit bureaus to delete the collection. This is top priority. If you cannot get the collection company to give you a letter to delete, then make sure you get the letter they provide. Sometimes these collection companies will not update the bureaus like they are required by law. Typically what they will provide depending on the agreed upon negotiations, is a letter that says either paid in full or settled.

Check for inaccurate information
Along with paying off debt you owe, you also need to check for information that is not correct. Like collections or obligations that are not yours. This is very common on credit reports. If there is information on your credit report that is incorrect, disputes it on line. Here is a good place to do this. www.creditscorequick.com/sitemap. Some professionals recommend disputing via certified mail, but we have got the same results via on-line dispute, plus it’s faster. Now if you need to send in a letter to the credit bureaus, then you have to send the letter along with the dispute via certified mail. The disputing process depends on the situation of the collections. For example: if you filed a Chapter 7 Bankruptcy, and it’s been on your credit report for more than 10 yrs, you can dispute this on line. This is because Chapter 7 Bankruptcies are only suppose to be on your report for 10 years from original file date. You don’t need letter to dispute this because the credit bureau can call and verify original file date.

Revisit your Credit Report
Once you have knocked out a bunch of collections and charge offs re-pull your report. Don’t pull it until at least 90 days after you have paid a bunch of collections. The reason for doing this is you want to make sure these companies are updating the credit bureaus. If is very common for collections companies not update information like they are required to do. You also want to give the collection companies time to update as well. Usually they will take 30 to 60 days to send in the necessary information to update your credit report. Give it some time, and with a little hard work you will be able to revive your bad credit.

Re-establish credit
While you are taking care of old debts, you need to be establishing new ones. Yes, you heard me correct, in order for your credit scores to increase you need some good credit reporting as well. The quickest way to get this going is to get a secured credit card. Orchard Bank has one of the best credit cards, which will allow you to establish credit, even after a bankruptcy. The reason this is so important is because you began the process of good credit reporting to all 3 credit bureaus. It will not hurt to get a couple of secured credit cards. Once you have some good payment history on these cards you will get offers from other credit card companies. The one thing you want to remember is don’t make the same mistake twice. Use your credit cards with care, and make sure you are never late on them. If you are late then you defeat this entire process.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Student and College Credit Card advantages

Student and College credit cards are a great way to establish good credit while you are in school. When you are away from home starting your college days you might encounter some expenses that need to be charged. With a student credit card, which by the way credit card companies are anxious to offer with good rates you can easily be on your way to establishing a great credit score. Credit Card companies know that you are less likely not to pay you bill since you are in college. Typically college students have the drive and understanding that your credit report and credit scores are very important. They also know you are more responsible especially since you are taking the big step of continuing your education. Since credit cards are a necessary in showing your ability to pay back a obligations, on the flip side you want to be very careful and responsible when charging on them. You don’t want to get over your head with unnecessary charges. When you charge on a college credit card, you don’t what to charge more than you could pay off that month.

What to avoid with Student and College Credit Cards.
1. Keep your credit card charges below 30% of credit limit
2. Don’t be late on your credit card payments
3. Don’t get cash in advance, the fees are unnecessary.
4. Don’t charge more than you can pay off that month.
5. Keep your college credit card in a safe place while in dorm
6. Don’t let you friends charge on it.


Advantages of Student and College Credit Cards.
1. Build good credit.
2. Increase your credit scores.
3. With good payment history you will be able to get other loans.
4. You have emergency money.
5. You will get other low interest credit card offers.
6. Be able to get good rates and terms on other loans


Remember when you get your student credit card; make sure you are responsible, because when you get done with your degree, most employers check your credit report to see how responsible you are. If you have a good credit history plus a degree, you are more likely to get that job, as opposed to the individual that has the degree but credit is bad. You should have at least 3 lines of credit reporting on your credit report. Examples would be a couple of credit cards and maybe a car loan. The credit bureaus like to see a mix of credit when determining your credit risk. Your credit has never been more important that it is now. Get your student credit card today, and be well on your way to establishing a good credit history. It would not hurt to get a recent copy of your free credit score report as well to see where your credit currently stands.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Secured Credit Card Advantages

Secured Credit Cards have many advantages for someone who does not have any credit, or someone with challenged credit. It is hard to do a lot of things without credit cards. In this article I will discuss why you need credit, and if you don’t have credit or your credit is challenged, how secured credit cards will benefit you.

Establish good credit
One of the hardest challenges is to get a creditor to extend credit to someone that has no credit. There was a trick used for years, and that trick was having a family member ad you to there credit card as an authorized user. Recently the FICO® score model was changed because of the fraudulent use of selling authorized user accounts by credit repair companies. This motivated Fair Isaac to change there FICO® score model. So if you are added to a credit account as an authorized user, this can hurt your credit score. This loophole has been closed. The best way to get started in the credit building process or the credit rebuilding process is too get a secure credit card. Secure credit cards require a deposit into a designated account by the credit card company. This is the quickset way to start establishing good credit.


How much credit do you need?
Once you start building your credit, most creditors like to see at least 3 lines of credit reporting on your credit report for 12 months. The standard is getting 3 secured credit cards or at least two will suffice. Once the lines of credit have been reporting to all 3 credit bureaus for 12 months your credit score will start to appear or get better depending on your circumstances. Remember secure credit cards are just a way to get the ball rolling. After you have been paying on your credit cards with no late payments other credit card companies will start offering you credit cards with small credit limits. Typically they will extend around $1000 line of credit to you. With good history they will increase that limit over time. Your credit card balance should never be charged over 30% of allowed credit limit. Fair Isaac talks about this in their score model. Be careful with credit cards, they can consume you if you are not careful. You should never charge more on a credit card than you can pay off that month.


Payment History
If you have one late payment on your credit card, you just defeated the entire purpose of this article and the credit building process. One late payment will slaughter your credit scores. Typically your credit score will drop 100 to 150 points. So if you had a 720 credit score, you now have a 570 score. A 570 credit score will get you denied for all types of credit. So make sure your payment history is in good health. Never be late on anything. Make sure you get a copy of your free credit score report to see where you currently stand.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Bad Credit Credit Cards

Bad Credit Credit Cards are with in your reach believe it or not. Credit card companies know there are circumstances where families get into trouble and need to re-establish credit. Maybe you don’t have any credit, and need to get something going right a way. There is help right around the corner for all your credit rebuilding needs. Learn the first step in reviving your credit with bad credit credit cards.

Orchard Secure Credit Cards

Let’s assume you have bad credit, and you decided to go to a credit repair company. Guess what the first thing they do is? They refer you to a secure credit card company to re-establish new credit. The process of rebuilding your credit is to get new credit reporting to all 3 credit bureaus. The fastest way to do that is to get a secure credit card. Typically the requirement is to make a deposit between $200.00 to $300.00 dollars with the credit card company to get matters underway. I have seen individuals with a 500 credit score get approved. There are also other cards that guarantee approval for a secure credit card. That may sound kind of weird, but yes you can get denied for secure credit cards even though you give them your own money. Lets assume you get denied for a secure credit card, what then? I will explain in the next paragraph.

New Millennium Secure Credit Cards

There is help if you get denied for a secure credit card. New Millennium guarantees approval. The fee might be higher, but at this point you really don’t have a choice. You are on a race to get something good reporting on your bad credit report. This card is the trick and will get you promptly on the road to recovery. There are other cards out there, but these are the two that get it done. This card is ideal for individuals who maybe have just got out of a bankruptcy and need to get matters in the right direction quickly. Maybe you just had a foreclosure because of an ARM adjustment and the payment sky rocketed out of control. What ever the case, this card guarantees approval.

Secure Credit Cards

Here is a list of circumstances that make these cards ideal for you.
1.. Young individuals trying to establish credit.
2. Just got out of a Bankruptcy
3. Recent Foreclosure
4. Everything went to collection
5. Never have established credit and got denied for a loan recently for lack of credit


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Your Credit Score and Credit Report are not determined by the following:

Have you ever wondered what does not affect your credit score and credit report? There are factors that Fair Isaac doesn’t use in determining your credit risk. Fair Isaac says its scoring model complies with the Equal Credit Opportunity Act prohibiting against using racial or ethic data in credit decisioning. They also have said that based on independent research, it has shown that the credit scoring is not unfair to minorities or people with little credit history. The scoring model has been a consistent and accurate measure of repayment for all people who have credit history. So in other words, your ethnic background has nothing to do with a given credit score.

In a different perspective of the model, credit scoring can be a disadvantage for people who are not familiar with the system. For example individuals who are poor and low-income usually don’t have great mobility. They typically utilize local stores and credit grantors within there communities. Since most of these grantors tend to be small, they usually don’t report to the Credit Bureaus. With this in mind, this class of people tends to suffer the most because of the limited access to big banks and companies that report to all agencies.

Here is what Fair Isaac does not consider:

* Race, Color, religion, national origin, sex, or martial status.
* Age
* Salary, Title, Occupation, employer, date employed, or employment history
* Place of residence
* Any interest rate being charged on credit card account or other account
* Any items reported as Child/Family support obligations or rental agreements
* Certain types of inquiries ( Certain requests for your credit report or credit score)
* Any information not found in your credit report
* Any information that is not proven to be predictive of future credit performance.


Since there is so much information out there about what determines your credit score on your credit report, we figured we would give you a different perspective in this article.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

A Good Credit Score is Within Your Reach

What does your credit score include? When you are establishing your credit, you may wonder what the credit agencies are actually looking for. Generally, they start out with your name, social security number, employers, current and past addresses, and your marital status. When someone gets your credit report, it includes things like when you make payments to your utility bills. Paying a bill late can stay on your credit history for years. Things that you might not imagine would affect your score can be heavily weighted when determining how high of a risk you are. They look at whether you own or rent, how long you have lived at the same address, what your occupation is and how many years you have you been at your current job.

Good credit gives lenders the idea that you are a low-risk person who manages their credit and finances wisely. When you establish a good credit history, you will enjoy lower interest rates, lower minimum payments, less paperwork and more lending options. Poor decisions can lead to years of paying higher minimums and higher interest, forcing you to hold your balances for longer and longer. You can be denied jobs, car loans, and pay auto insurance rates over 200% higher than someone with a high rating. Those who manage their credit well enjoy lower limits, more freedom of which instruments they choose and can pay off balances more quickly. In general, having good credit saves you money and can get you the kind of help that you need when you need it.

Lenders look at your financial situation as well when determining your credit worthiness. They will see how many credit cards and loans you have, if you have made any late payments and how many years have you had a credit history. Eight or more years of credit history is preferred, so get started as early in your life as possible. Don’t let your debt add up to over 15% of your income. It’s a good idea not to let your balance get up to 50% of your available credit on credit cards.

Keep the number of inquiries on your credit low. You should take a look at your own credit report once a year to make sure there are not any mistakes on it. One inquiry does not hurt you, but multiple inquiries can significantly impact your score. Even two inquiries can lower your score by around eight points.

Building good credit takes time, effort and maybe some sacrifices. Start early building your net worth. Having a checking and a savings account earns you a score four times higher in that scoring area than a checking account alone. Set up an automatic savings plan, no matter how small of an amount is being contributed. Take advantage and invest heavily in your employer’s retirement plan. All of these things show your responsibility.

Pay your credit cards before the due date and always pay more than the minimum. Pay your bills on-time, every time. If you realize that you are going to have to pay a bill late, don’t settle on paying a late fee and forgetting about it. That one late payment will be on your credit report for a long time. Take everything that has to do with your bank account and bills seriously.
If you need some help with your score, investing in secured credit cards can help establish a better credit score when you pay it off on-time for many consecutive months. The bottom line is to be responsible, and your score will reflect your efforts.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

What's My Credit Score?

If you’re applying for a loan or credit card, your credit score could have an impact on your interest rate and loan term. So what is your credit score and what does it mean? What does it say about you? Credit scoring is how creditors or lenders assess their risk when lending money to you. They look at your score and it indicates to them how financially responsible you have been in the past.

Your credit worthiness is calculated by credit scoring agencies and bureaus. You should get a copy of your credit score at least once a year and make sure that there are no mistakes or omissions in it. You can get this information for very little money and sometimes for free. Your actual score will be between 300 and 900. Higher scores are much better and can get you great interest rates, longer pay-off periods or terms, lower fees and less paperwork in the application process. Low scoring applicants are usually rejected all together or they are offered high interest rates, high minimum payments and more fees. Sometimes low scoring applicants are accepted based on their employment history or other factors, but generally aren’t as trustworthy as their higher scoring counterparts.

Is your score a good score? 650 or higher is a very good score and will generally earn you the very best terms when applying for loans. If there are a few minor problems with your credit history, such as a couple of late payments in the last few years, then you can score between 620 and 650, which is still a good score. You may run into a few problems with this score, but generally it is still pretty good. You’ll probably end up with slightly higher interest rates than people with excellent credit. Scoring under 620 puts you into a risky category. You may still be approved for a loan, but it will be at the highest interest rates and you may be considered a big risk to lenders.

Things that affect your credit score include your borrowed money payment history, late payments and missed payments. Late and missed payments on a credit card or loan are very big considerations when calculating your credit score. You should try to never make a late payment because it blemishes your record for years. Another thing considered when figuring your credit score is your debt to income ratio. If your level of debt is very high relative to your income, or if the cards you have are close to their spending limits, then your score will probably go down.

If your credit history is very long and you’ve had revolving credit for years, then your score may drop. Trouble paying things off completely makes you look like you are in over your head, or you’re just not trying to pay off your debts. Inquiries on your credit are another thing that is looked at. If you’re constantly applying for credit cards and loans, regardless of your acceptance or use of the instrument, then you look like someone who can’t afford the things that you’re trying desperately to get. Do your research before choosing a loan or credit card to apply for. Multiple inquiries on your credit can hurt you in the long run. Your credit score ultimately depends on you.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Secured Credit Cards

The paradox of improving or creating a credit score with the use of lines of credit may seem impossible. How are you going to prove your credit responsibility if no one will issue you a line of credit for doing just that? For people who find themselves in this situation, secured credit cards can be the answer. By using a secured credit card, an individual can demonstrate their ability to pay bills on time and use a card card responsibly.

Secured credit cards are issued when an applicant who has bad credit can offer some type of deposit or collateral for that amount of credit. This might be a deposit of a pre-arranged sum of money into a savings account, certificate of deposit, or money market. This way, the lender is covered if the applicant is not able to make payments, reducing the risk dramatically. This benefits the card holder by allowing them to create a credit history. Instead of spending cash, they can make purchases on the credit card and make responsible monthly payments to contribute to their overall credit score.

When using a secured line of credit, it is important for the cardholder to pay off the card in full every month. Just like any other card, interest will be charged on the outstanding balance of a secured credit card. The idea is to improve your credit score, not to acquire more debt. If an individual defaults on secured credit, the lender can then withdraw the defaulted amount from the security account to pay the debt. Though the debt will be paid, it may result in more damage to your credit rating. Be sure to discuss this with a potential secured credit lender to determine their policy on reporting to credit agencies.

When considering various lenders for a secured credit card, take the time to read the fine print and ask questions. Make sure you understand the interest rate that will be charged. You can expect for the rate on a secured card to be somewhat higher, but it should still be reasonable. Take every factor into account when making your decision. What are the grace periods, penalties for late payments, and any other fees that might be associated with the account.

Once you have obtained a secure credit card, diligently make payments on time and for the right amounts. After six months to a year of responsible credit use, many lenders will increase your limit, possibly even doubling it, which is great for your credit score. Continue to pay off the balance each month and your credit report will reflect the fact that you have more available credit that you are handling responsible.

Secured credit cards are a great way for people to get back on the right track. If you are serious about improving your credit or establishing a history, explore the possibility of a secured credit card. It is a great step toward teaching you to manage money more responsibly and showing lenders that you can.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.