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Secured Credit Cards?

I just opened last week 4 secured credit cards with $300 credit limits each. I need to repair my credit... If I charge $10 on each monthly then pay all of them off monthly and keep doing that will My credit score jump up faster?

Public Comments

  1. have no clue maybe
  2. You better double check what you got yourself into. You have to pay high fee's for a secured card. You may very well already have $250 dollars worth of fee's already charged to the cards. PER CARD!! The best way to up your score is to keep all balances at zero but leave the cards open but secured credit cards do not allow you to do that.. There is percentage rates, monthly service fee's, yearly fee's. .They make damn sure you are paying them for absolutely NOTHING!!
  3. It will not jump faster at all because you are just paying on time and building up your credit back slowly. I had one converstation with one representative from the bank and he suggested me to do the following: Use the card for $10 dollars and when you pay to the bank pay $15 which means they will owe you money rather than you owing them money. He told me this will help you improve your credit faster.
  4. No...You need to have a high credit balance to show you are credit worthy ! I have been repairing my credit with 3 secured credit cards now for over a year, and I finally just got an unsecured credit card ! Use the credit cards to pay your everyday bills, like gas, electric, groceries.....then pay your credit card bill off monthly... ! It works for me....Good Luck
  5. First of all, you don't really need 4 credit cards. You hurt you credit more than your trying to repair them. The way you want to do is: - Go to your bank, and open up a debit credit card. Use that card and pay off all the balances.
  6. I am doing the same thing with a $300 card accept I charge the card half way to 150$ and pay it off every month so there is no interest. The larger the amount the more credit but keep in mind if you're card has more than half its balance used up at the end of every month it actually lowers the score and sends up red flags . So charge half the balance every month and pay it immediately. I am using the Bank of America secured Visa and it so easy to pay it off on line before its even due with a linked checking account . Really I consider it no risk since I am paying no interest and I just use it for groceries. Its the same as using my check card accept I get credit so why not charge a little more and receive the benefits. Good luck with your credit ! about the comment on the high fees Bank of America does not charge those silly fees . Mostly the on line No name banks do that but not a reputable bank some reputable banks may charge an annual $50-60 but that's pennies when it comes to the hardships you can suffer from bad credit
  7. Yes it will help you to to repair your credit score. It will not repair it any faster. Only time will do that. Time + good payment record = good credit score. It is good that you took the step in getting a couple of secured credit cards. You should use the cards and pay off the bill as soon as it comes to your house. Immeidately send off the payment in the mail. Do not wait until the payment due date. the earlier you pay it off in full the better it will be. But they will be looking for consistency. So a simple rule would be to use your card just like you would use cash. (In other words spend wisely). For example. You could use your credit card once a week at the supermarket for your weekly shopping. Treat the card like it were cash. For example if you were to spend $65.00 in the supermarket make sure that that money is already in your checking account ready to pay that credit card bill. the same way you would need the $65.00 in your pocket to pay for the groceries at the checkout counter well the same way have that money in your checking account ready to pay for each time you use your card. You could use it for your everyday purchases such as buying gas for your car. At the supermarket like I said and maybe for that occasional time you may go out for an "inexpensive dinner" at TGIF's or someplace like that. I would suggest using two cards and being well disciplined to only use it for absolutely necessary thingfs. Only as if you were using the cash right out of your pocket rule. In this way by using the two cards for your everyday or weekly needs you will be showing a regular purchasing pattern and this will make you look like a responsible consumer and credit card holder. Since you have secured credit cards backed up by your deposit in a bank account in time the bank may even convert your "secured" credit card into an "unsecured" credit card. At that time the bank will consider you as a responsible card holder who they feel that they cvan trust with an "unsecured" credit card. Sometimes the banks do not report purchases made on a "secured" credit card right away to the creidt reporting agencies. You can always inquire from the bank if they have done so or will do so. The important thing is that you establish yourself again by showing regular usage and payment of your one or two "secured" credit cards over a period of time. Just be patient. You can always increase your credit limit a little bit by making an additional deposit to your "secured credit card bank account". That is good that you are taking the first step in honestly trying to repair your credit worthiness. I wish you the best of luck. Remember that it is important to show "consistency" in your purchases. Therefore use your cards wisely but on a regular basis during each monthly billing cycle. Also most importantly pay the complete balance everytime you get your bill and send the payment in right away. Also only use your card if the money for that purchase is already in your checking account as if you had to pay that bill right away. Remember the rule only use your card as if you were taking the cash right out of your pocket in that moment to make a purchase. Never use the card if you do not already have that money beofre hand. I cannot emphasize that enough. In this way you will start to repair your creidt history and it will make you an "excellent credit card holder" for the rest of your life which is the way creidt cards should be used. Resist all temptation to be a compulsive shopper. I wish you much success and sorry for the long explanation. Additional comments: Do not use a debit card becasue if they get your information and break into your debit account and clear out your money the bank is not required to replace that money. If you have your creidt card by someone who steals your number you can report the loss to thebank and cancel that card and you will only have to pay $50.00 as a liability for fraudulent use of your card. Just remember to use your "credit" card just as if it were a "debit" card. Make sure that those crdit cards are backed up by a "savings account deposit tied to your credit card. A true "secured" creidt card is one where you deposit money with a bank and they use that money as collateral in case you don't pay your creidt card. Do not use those new offers that come in the mail as the fees are exorbitant. You will pay over a $100.00 for the first years annual fee. Secondly you will pay a serivce charge each month of about maybe $7.50.
  8. Some of these cards may have high fees in fine print or some raise the interest rates enormously after a certain period. I would suggest going to http://www.ineedrates.com to do some comparison shopping and finding a card with the lowest interest rates.
  9. Here's the REAL answer. I work in the credit card industry and I have firsthand knowledge of what you're doing, and your situation. For starters, you didn't have to open up that many cards. That can actually disrupt the mixture of revolving and installment accounts you have. The max that you should've opened was 2. It looks better to have 2 cards with high limits as opposed to having 4 cards with medium limits. What I would do in your situation would be to increase the limits by adding to the deposits and charge $10 and pay it off every month. One thing that you need to understand is that it's going to have to take time to rebuild your score. It's not going to happen right away.
  10. Man excellent answers, I couldn't have done better myself. Yes 4, was way to much, if you haven't used them yet, you can surely close at least 2 of them. Since you will be oweing them at least half of this amount anyway, it would have been better for you to open a secured account with that money. Remember with the present accounts that you have even if you charge 10, you still owe the starters fees/amount that you have to pay first, before you can even charge anything. So, I just hope you haven't gotten yourself in a worse mess. Try to close at least 2 of the accounts, but if you think that you can handle them stay deligent, and pay all bills on time, and pay a little more.
* Some answers may have been provided by Yahoo! Answers.