Step 2: Secure Your Credit!
The next step is to get a good credit card … Secured or Unsecured does not matter. Remember … its how you control the credit that counts! (think about Step 1) When in doubt, a secured credit card is always a sure way to rebuild that credit!
Secured credit cards are a great choice for those having trouble obtaining credit. A secured credit card can provide the best opportunity to establish credit. The credit card providers require a deposit equal to the credit line as collateral. While you build your credit, you are also earning a small return on the savings.
For example, Orchard Bank and New Millennium Bank both offer a secured credit card that requires as little as $ 200 to get started and reports to all three credit bureaus! As all secured cards go, there will be some start up fees (between $ 50- $ 150 is normal) so you will begin with a balance right away. As we discussed before, you need to get below 20% of the credit limit as soon as possible. (Hint: a $ 300 credit limit will allow you to carry a $ 60 balance at the 20% target.)
However, many card issuers also offer unsecured cards. During the application process for Orchard Bank, they will tell you which one you may best qualify for. So if you don't quite qualify for the unsecured right now, there won't be an extra hit to your credit score to get the secured card! Try now and see what's available for you! Contact the author for ideas on where to apply.