Has anyone that used a secured credit card saw improved credit after having BAD CREDIT?

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I have a low credit score (567). I was told that getting a secured credit card will help to improve my score. I just wanted to know has anyone ever used this method to improve thier credit? If so, did it work? How long did it take to see results? How high did your score go up?
I do not need information about a secured credit card. I know that it is called SECURED because of the initial deposit that I put down. I KNOW that after paying my balances on time I will get the deposit back and a chance to get an unsecured credit card. I KNOW THIS. I need to know has it helped anyone?

  1. Reply
    July 21, 2011 at 2:11 am

    Hi, what you have to understand is how this will work for you. You sound like, it will work by itself, without any intervention from you. No, you will have to acquire a secured (your money) and pay your bills in a timely manner, including not going over the limit, not paying late, then after approx. a year or two, depending on the Credit card provider/company they will return your deposit with interest, and change your account to an unsecured credit card.

    This whole process will help build your credit, and again it all depends on how you pay. Keep in mind, it also depends on the rest of your credit and how you pay those accounts also. You should also try to look at your credit report, and see what it looks like. The whole point is to delete or get rid of any and all negatives from your credit report, while adding positive credit to your credit report ie; secured credit/unsecured credit. Another good way to increase your scores, is to get a secured loan from your bank. Go to your bank, talk to the bank manager, and tell him/her what you would like to do. Tell him/her you would like a secured loan for (whatever amount you can afford-I would save up this money-somewhere between 500+, or more if you can afford it), the bank will report your payment history, just like the secured credit card to the three credit bureaus. Pay this off, and do it all over again, until they give you an unsecured loan for any amount. This is how you build credit.

    You should get a book on credit, finances, money management, credit repair etc. All of these types of books will help you learn more about credit and money management. Good luck.

  2. Reply
    July 21, 2011 at 2:33 am

    My score was around 540. It is now 683. This took about 12-16 months.

    I also paid off a few old collection items, which boosted my score almost 80 points overnight.

    I started with a $ 300 secured card. I later added another $ 300 non-secured card but paid through the nose in fees (about $ 60/year).

    I was just approved by Wamu for a $ 2500 non secured card, 14% interest and no annual fees.

    In the last 12 months, I have been approved for (3) $ 500 non secured cards in addition.

    Each month that goes by with all payments made on time my score ticks up a few more points. According to the score illustrator, I’ll be around 720 by Christmas. So I guess to really make it takes around 2 years of good history.

    In addition to signing up for credit monitoring and checking my score, I judged how my credit was doing by the offers I got in the mail. They started with secured only, then went to non secured high fee cards, then lower fees, then lower rates, and the good stuff (no fee, low APR) has started coming in the last few months.

    Good luck!

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