Secured Credit Card – Credit Repair Hack

DIY CREDIT REPAIR HACK 

If you really need to improve your credit score in a matter of months, not years, there’s an effective technique that doesn’t cost you any money to implement. In other words, you can avoid paying a credit repair company to “repair” your credit, as they often get mixed results and often have a hefty price tag. There are techniques right at your fingertips that are very easy to execute and cheap (sometimes literally free). So, here’s the deal.

There is a type of credit card called a secured credit card (see the Applied Bank Gold Visa and the Unity Visa below). As the name alludes to, the card is secured by a deposit, say $400 (don’t have $400? Don’t worry, the security amount can be much lower…it depends on what you’re comfortable with). The security deposit amount serves as your credit limit (and is completely refundable when you close the account). It essentially works just like a typical, unsecured credit card, with the exception that the credit card issuer has a security deposit as additional protection and there is NO CREDIT CHECK with a secured credit card.

To build credit using the secured card, you should use as small a portion of your available credit as possible, every month, because a low rolling credit utilization rate will help your credit score. Why is this important? For several reasons. First, credit utilization, which is the measure of how much debt you’re carrying versus how much credit you’ve been extended, accounts for 30% of most major credit scores. YES, YOU READ THAT RIGHT…30%! To put that into perspective, payment history (whether you pay your bills on time, or at all), a metric almost everyone is familiar with as THE major credit score factor, accounts for 35% of your credit score. In other words, using a secured card correctly can have a major impact on improving your score.  And again, you can start seeing positive results within 6 months.

“The score doesn’t look at a secured card any differently than an unsecured card,” said Barry Paperno, a credit score expert who has worked with FICO and Experian. “It will look at the fact it’s a credit card, when the card was opened, the credit limit and the balance, and of course the payment history. In that way it will help establish credit just like an unsecured card.” For example, let’s say you open a secured card with a $500 security deposit. If you can spend less than $50 a month on that card, or a 10% utilization rate, and pay that card off monthly, you will be exhibiting a both a low credit utilization rate and simultaneously improving your payment history. Wow, right?!

So, here’s your chance to take 5 minutes and open up one of these cards. It’s a simple application process. I’ve posted a couple cards above and below this article. I think both are awesome choices. Feel free to look into these, they’re the best ones I could find. And if you’re hell bent on hiring someone to help you, which I understand if that makes you comfortable, here’s a link for Lexington Law, a company that has a good track record of helping people repair their credit. BUT AGAIN, have some faith in yourself because you CAN do this by yourself. What have you got to lose?

Click on either card below to begin your path to repaired credi

 

APPLIED Bank Secured Visa Gold Preferred Credit Card

Secured Card Applied Bank Gold

  • Annual Percentage Rate (APR) – 9.99% (fixed)
  • Annual Fee – $48
  • One-Time Fees – None
  • Monthly Fee – None
  • Activate Today with $200 Minimum Deposit – Maximum $1,000.
  • Increase Your Credit Limit Up to $5,000 by Adding Additional Deposits Anytime
  • No Minimum Credit Score
  • 5 Minute Online Application Process

Apply Now Orange Button

 

UNITY Visa Secured Credit Card

Secured Card Unity

  • Annual Percentage Rate (APR) – 17.99% (fixed)
  • Annual Fee – $39
  • One-Time Fees – None
  • Monthly Fees – None
  • Balance Transfers Into APR – 9.95% for 6 months, 17.99% remainder
  • Activate Today with $250 Minimum Deposit – Maximum $10,000.
  • No Minimum Credit Score
  • 5 Minute Online Application Process

Apply Now Orange Button

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