Quick Tip #2

If given the option to pay down a car loan or credit card debt, pay down your credit card debt.  Paying off a car or other installment loan will not give your score the boost you are looking for.  Pay down pay down your existing credit cards first, then make additional payments to your secured cards and make sure you pay off credit card in full balances each month before the statement drop date.

Just think of all the interest you are saving and put these savings to work by paying down your installment debt!

Secured Credit Card Comparison Chart

I created a spreadsheet for comparison of the secured credit cards available and have uploaded the file to 4shared.com.  It is a free download, is not able to be modified but you can sort it.

Please let me know what you think!

Secured Credit Card Comparison Chart.xls

Quick Tip #3

Low-limit unsecured credit cards are not only costly, they may actually hurt your credit score in the long run. Accounts issued by creditors who are "marked" as second chance lenders, are not given the same scoring weight as the big boys.

Secured Credit Cards to Improve Your Credit Score

In this day and time, I am a big proponent of secured credit cards, this was not always the case.  But with large credit card companies trying to save their own tails, cutting peoples credit lines in half (or less) for little or no reason, closing accounts for one reason or another, secured credit cards seem to be the a way for consumers to have a little control over their credit. This is especially true for those who are trying to rebuild their credit.

The biggest benefits of a secured credit card over a standard unsecured bank credit card is:

• You have control over the credit limit.
• Some secured credit cards will turn into unsecured credit cards, with timely payment history. 
• Secured cards, when compared to low-limit cards for rebuilding credit, have a relatively low APR.
• Because you have control over the credit limit, larger credit lines are possible, resulting in a higher credit score.

Debit Card, Credit Card, Secured Cards - Oh My!

No doubt in your quest to improve your credit you have run across the many different types of credit cards available to consumers - prepaid debit cards, credit cards, secured cards, platinum cards, low interest rate cards and many more.

Most cards you will run into will fall into one of the following categories:

• Debit Cards aka Check Cards
• Pre-Paid Debit Cards
• Low Limit Unsecured Credit Cards
• Secured Credit Cards
• Normal Unsecured Credit Cards
• Vanity Cards

Before applying for new credit, arm yourself with knowledge about each type of card to ensure that your decision will be the best one for your long term credit success.

Do I Really Need Credit Cards?

Most peoples first reaction to a financial hardship is to cut up and cancel their credit cards, having the ultimate goal of paying cash for everything.  Although this extreme way of thinking and doing may work for some, for most of us this just won't cut it.

A lot of people wonders, "I have a VISA debit card, why do I need a credit card too?"  Actually, credit and debit cards are two totally different payment options.  There are many benefits a credit card offers that a debit card does not.  Some of these are: 

1. Bank cards report to your credit report and if handled properly increase your credit scores.
2. Convenience.  It is virtually impossible to rent a car, book a hotel room, or purchase airline tickets without one.
3. Liability.  Credit cards offer consumers protection under the Fair Credit Reporting Act (FCRA) for purchases over $50.00  Most debit cards, either pre-paid or tied to a checking account, and business credit cards do not.
4. Fraud Protection.  Purchasing scams, especially on the internet, are ram-pet.  Using a credit card for telephone and online purchases reduces risk to your cash flow.
5. Purchase Protection.  Some credit cards offer card holders Purchase Protection.  This added benefit guarantees the items you purchase from theft, accidental breakage, etc...Be sure to ask your card issuer about this valuable option.

Top Secured Credit Card Programs

There are a number of Secured Credit Card Programs out there.  Policies and fees vary as well as the approval process for each bank card issuer.  Some cards offer unsecured status after a period of timely payments, other will never become unsecured credit cards.

Below is a list of over 20 Secured Card issurers and links to the appropriate application pages are located in the link section on the main page below.  Be sure to book mark this page and visit often as it will be updated as new information and offers are available.

• Amalgamated Bank of Chicago
• American Momentum Bank
• Applied Bank
• Banco Popular
• Bank of America
• Capital One
• Fifth Third Bank
• First Premier Bank
• Flatbush Federal Bank
• Hartland Bank
• Merrick Bank
• Navy Federal Credit Union
• New Millennium Bank
• Orchard Bank
• Plains Commerce Bank
• Public Savings Bank
• Ranier Pacific
• United Bank of Philadelphia
• U.S. Bank
• Wells Fargo
• Zions Bank

Do you homework and research each card offer carefully to determine the best program for you.  I do my best to provide you with the most accurate and up to date information, but card issuers can change program offers and guidelines without notice.  Please verify ALL information before applying to any credit card offer listed here or elsewhere.

How Many Credit Cards Should I have?

According to Fair Issac, the creators and keepers of the FICO score, the optimum number of cards is between two and four.  Having less than two or more than four puts you at higher risk and this risk is factored into your credit score.

Can you have more than four cards and still have a strong credit rating?  Of course! But since you are reading a blog on improving your credit score, chances are there are a few blemishes and areas that could stand improvement.  Until your history and credit management habits are strong enough to offset the additional liability of more debt, the optimal number of cards with the highest credit limits you can qualify for is the best way to go.