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Do Secured Cards Really Improve Your Credit?
Secured credit cards are often touted as a great vehicle to help you improve your credit. It's important to understand what secured credit cards are and how they work, to determine if they are the right choice for you. The following information will help you make a decision.
What Is It?
A secured credit card is a credit card that is extended to you by a lender. You have to put down an amount of financial collateral to obtain the card. Your credit limit is the same as the amount you put down. For example, if you give the lender $1,000, your credit limit is $1,000. You can charge up to the amount of available credit. Then you are required to make payments on this account each month, just like an unsecured card.
How Can It Help Me?
A secured card minimizes the risk of lending money to you, so more lenders will be willing to work with you. As long as you avoid maxing out your card, and ensure that you pay every payment on time, your credit score will increase over time. You will then be able to get better offers for credit, including unsecured accounts.
If your credit is less than perfect, it is a good idea to enlist the services of a credit repair specialist We have provided a list of the top ranked credit repair companies currently working in the United States for you to browse and find the one to best help you achieve your financial goals.