If you have filed bankruptcy, been foreclosed, or just have crummy credit because you didn’t properly manage your finances you are at a severe disadvantage in this world where having good credit is very important, and having a credit card is almost essential. There are many disadvantages to having bad credit, which is a score below 680. Your bad credit will not only stand in the way of you getting a new card, or having a card with a fair interest rate, but will effect your ability to rent an apartment, buy a car, and even getting a job.
When you have bad credit any potential landlord, salesman, or employee will view you in a negative, less than positive light. A bad score means you don’t pay your bills on time, show irresponsibility when paying, or have a high debt load. A landlord will see someone who won’t treat his apartment vclub new domain properly and won’t pay his rent on time; a salesman sees someone who is a poor risk to loan money to for a purchase of a car, or even realize it is a bad idea to rent a car to you; a potential employee will see someone who might put the same attitude towards his or her finances as they put into the job.
If you are in the situation where you have a score below 680 which is considered sub-prime and not good credit then you should be looking for ways to improve your credit score. Many of these ways to improve your credit are time consuming, money consuming and not fun. What do you do?
The answer is a secured credit card. A secured card will help you improve your credit slowly over time because it will only send good reports to the credit reporting bureaus. A secured credit card is not a true credit card; there is no credit, you “secure” the card by depositing a certain amount of money into a bank account with the issuer of the card. You use the card as a regular credit card but since you cannot get into debt because you can only spend to the amount of money you have available to pay off the card balance each month, your secured credit card will only send good credit reports to the three credit reporting bureaus over time.
It is a good idea to use your secured credit card as much as possible. Using your secured credit card only helps your credit so you should use it for any purchase you can. It is very common to set up your monthly bills onto your card, so this would be a good idea. Over time, your credit will turn from bad to good if you use a secured card!