Secured Credit Cards For Poor Credit

Posted by admin on November 6th, 2009 at 12:00am

Question:
My credit score is really low. Would two secured credit cards for poor credit that i pay for on time increase my bad credit score?
Please Help Me I am requesting for Some Advice.

Answers:
I am employed as a credit analyst as well as an underwriter at a credit card company, and I manually review credit record histories for limit increase requests and normal applications for credit, so I would have knowledge from experience of your situation.
To answer your inquiry, without having any background about your credit history, it’s difficult to really determine how big of a difference it would make, On the other hand, I can tell you what you may do to make the most out of these two secured credit cards for poor credit you have, as that’s the ideal thing that you can do to re-establish your score.
First, it is good to know what your score is composed of:
- Payment history makes up 35%
- Entire debt owed to existing credit ratio-30%
- Period of time establishing credit-15%
- Types of credit that is built-10%
- New applications and inquiries-10%

If you pay on time, that will rule out the first one. There is no real shortcut to that, so that will require time. But what you may take care of is the second one. The best thing that you could do should be to make little purchases of about 20 dollars maximum, and pay it in full and on schedule, each month AND increase the deposits to bring up the limit. When you have a balance of zero and a big limit would be the best combination for a credit rating because that indicates you have all your available credit and you have zero debt. Bear in mind that just as long as you keep the accounts in decent status, you will receive the deposit back sometime in the future anyway, so it would be to your benefit to increase the limits as high as you can, seeing as you wouldn’t have the ability to do it with some other credit card. However, as long as you do the things I just listed, you’ll see a big improvement!

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