Why a Secured Credit Card Helps Your Credit

Why is My Credit Score Important?

Today, most companies use your credit score to make decisions about credit cards, loans, mortgages, insurance, and more. Information about you and your credit experience is used when developing your credit score, so it’s important to be aware of the influencing factors!

What is a Good Credit Score?

Credit scores range from 300-850. It is beneficial to have a credit score of 600 or more.

If your credit score is lower than 600 and you would like to improve it, consider the following tips…

How Can You Improve Your Credit Score With a Secured Credit Card?

1. Get a Secured Card and Use It 2. Pay Your Monthly Bills on Time 3. Make More Than Just the Minimum Payment 4. Don’t Max Out Your Card 5. Avoid Opening Multiple Credit Accounts at

Once

1. Get a Secured Card and Use It

Secured cards are credit cards that require a cash security deposit to set your credit limit. They’re much like pre-paid cards, but they help you build credit. If you’re not happy with your credit or don’t have any at all, it might benefit you to get a secured card.

Visa’s Unity card is a great card that helps build credit.

2. Pay Your Monthly Bills on Time

The #1 factor that influences your credit score is whether or not you pay your monthly bills on time. Just one late payment could drop your score significantly, so it is essential to pay your bills in a timely manner to keep your score where you want it.

3. Make More Than Just the Minimum Payment

Don’t stress if you’re unable to pay your card in full each month. Making the minimum payment isn’t necessarily bad, but it won’t benefit your score. However, If you pay your card in full each month, you have the chance of increasing your credit limit, which is better for your score overall.

4. Don’t Max Out Your Card!

Whether you have a secured card or not, it’s important to be careful of maxing out your credit card, as it’s a vital factor that influences your score. Luckily it’s easier to stay on top of your payments nowadays due to online payment options and mobile apps for banking.

5. Avoid Opening Multiple Credit Accounts at Once

Opening multiple accounts at once can actually decrease your credit score. It's beneficial to research your credit options first. For example: Avoid cards with high interest rates and/or penalty fees.

http://www.OneUnited.com