Secured Cards Can Boost Credit Score
By BRIAN CURTIS
Updated 12:25 PM CST, Fri, Jun 19, 2009
Secured credit cards are an easy way for consumers to boost their credit scores, according to lender Rodney Anderson at Rodney Anderson Lending in Plano.
Here's how a secured card it works:
"You deposit your own money, whether it's $200, all the way up to $5,000," Anderson said. "The credit card company gives you a credit card for that amount."
Because it's your money, not the card issuer's, almost anyone can get a secured credit card.
"On most secured credit cards, it's guaranteed approval," Anderson said. "There's no income verification, and there's no credit check."
But just like a traditional credit card, a secured card reports to the major credit bureaus.
"You charge on it once a month. You pay it off, and it helps you build and rebuild your credit," Anderson said.
However, there can be pitfalls. Anderson advises consumers to check the annual percentage rate, minimum deposit and the annual, monthly and application fees.
First Published: Jun 18, 2009 5:34 PM CST
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