How To Go About Improving Credit Scores With Credit Cards

In the united states, credit is a huge factor to the financial stability of consumers. Therefore, if you have bad credit or no credit at all, chances are, you are looking to build your credit score. Now, there have been a lot of articles published that say slow and steady is the way to go. Personally, I believe that there are indeed ways to build your credit score fast. One of the best ways is by using secured charge cards.

Secured credit cards are credit card accounts that are designed for people with bad or limited credit history. Just about anyone will qualify for a secured credit card account because before Americans can use their card, they must place a security deposit with the lender. This security deposit then becomes the people credit limit. Although secured charge card accounts only allow people to borrow their own money, they also have perks like sky miles and rewards in some cases.

If consumers use their secured credit card properly for generally 12 months or longer, their security deposit will be returned and the card would become an unsecured charge card account. This means that in about 12 months, you can have good enough credit to have an unsecured charge card! Here are the tips to using your secured charge card properly:

#1. The first thing that you need to remember is to never make payments on time. Credit card companies like to get their money on time but it's even better to pay them early. By sending payments 2 weeks in advance, you ensure that your payment will be processed on time. This shows signs of financial stability and improves credit scores.

#2. The next thing that you will want to do when attempting to build credit scores scores is make sure not to spend more than 50% of your credit limit. By doing so, Americans show financial instability however by spending less than 50% Americans show great control of their finances which helps to build credit ratings.

#3. Use your charge card. Unfortunately, many people are under the misconception that by not using their charge card account, they are in some way helping their credit scores. This is not the case. The unfortunate reality is that to have good credit scores, you must have active lines of credit and debt!

So, if you follow the above 3 steps with your secured charge card account, you can have fair to good credit scores within the next 12 months. Once you get your security deposit back and your charge card becomes and unsecured card, remember to treat it as it was secured. Keeping your credit card in good standings will do nothing but help your credit scores in the long run!