How To Get Your First Credit Card And Build Credit / Raise Your Credit Score (Secured Credit Cards)

Everyone has to start somewhere when getting a credit card and building credit. So how do you start?

The best way is with a secured credit card.

It is so important you do it right from the start, as it will help you get a better credit score faster, get money at a lower interest rate, and so much more.

So let me walk you through how to get a secured credit card.

What is a secured credit card?
A secured credit card is backed by a cash deposit you make when you open the account. The deposit is usually equal to your credit limit, so if you deposit $500, you'll have a $500 limit. Some other things to know are - Some cards allow you to upgrade directly to an unsecured card. If you close the account you will get your money back. It reports to the credit agencies to help you grow your credit.

How do they work?
Once you put the deposit in, they work just like an unsecured credit card. You can use them wherever credit cards are accepted, including online. You can build or rebuild your credit by using the card responsibly and paying your balance on time. You incur interest if you carry a balance

Most major credit card issuers offer both secured and unsecured cards. Annual fees are common, but you shouldn't pay more than $50. You can find multiple options with no annual fee at all among our favorite secured cards.

How to use effectively and build credit
Although they require a deposit, secured credit cards are a powerful tool for rebuilding credit. Here's how to use one most effectively. Use the card sparingly, making only one or two small purchases every month. Pay your balance in full every month before the due date. When you pay in full, you won't be charged interest. Interest rates on secured cards are generally higher than those on unsecured cards. Keep an eye on your credit score over time. A great tool for checking your credit is credit karma.

How long will it take?
It takes only about a year to improve their credit score enough that they're able to qualify for an unsecured card. Some issuers will let you transfer your secured line of credit to an unsecured one, which is better for your credit score because it doesn't require you to open a new account.
What to look for in the first credit card
You want to find a card with no annual fees, a low-interest rate, and some perks.
Here are some of the cards I recommend :

Discover It Secured
Pros
-No annual fee
-Automatic monthly reviews starting at 8 months to see if we can transition you to an account with no security deposit 8. See other issuers' websites for their review periods.
-Earn 2% cash back in popular categories.
-Plus earn 1% cash back on all other purchases.
-No foreign transaction fee

Cons
-Must be funded from a bank account.
-22.99% APR (Higher them some others).

Open Sky Secured
Pros
-Doesn't run a credit check to open an account.
-Doesn’t require a traditional bank account.

Cons
-No Rewards.
-$35 annual fee.
-Cant upgrade to a secured account directly.

Видео How To Get Your First Credit Card And Build Credit / Raise Your Credit Score (Secured Credit Cards) канала Jack Hoskins