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Joe Harris' Blog

By Joe Harris | Mortgage Broker
or Lender in Melbourne, FL
  • What to do if you have no credit? Secured credit cards and one way to establish credit

    Posted Under: Financing in Brevard County, How To... in Brevard County, Credit Score in Brevard County  |  October 22, 2010 8:08 AM  |  2,058 views  |  2 comments

    It is an age old catch-22; you can not get credit, because you do not have credit.  Have you ever heard that before?  Many people establish credit when they are very young by having a parent add them on to an account, or co-sign for a car or credit card.  However, what if this is not the case for you?  How can you establish credit, so that you may prove to a creditor that you have a history of paying your bills on time?

    Credit cards

    One way to establish credit is to get a secured credit card.  A secured card will work just as any other credit card will, however, these cards require a security deposit.  So, if you start with a deposit, or security, of $200, the creditor will give you a $200 limit.  If you pay your bill on time, after a while, some companies will even return your deposit, and increase your limit.

    The goal here is to prove to the creditors that you are responsible with credit, so, it would be best to only charge a small amount each month, and pay your bill off monthly.

    Now, it is also important to shop around when looking for a secured card as these cards come with different annual, monthly, or set up costs.  Also, you want to make sure that the creditor reports to all three of the credit reporting agencies ie. Trans Union, Equifax, and Experian.

    Again, good credit will save you many, many thousands of dollars over your lifetime, so it is imperative that you protect it.  If you have any questions about credit, and would like to speak with an expert, please contact Joe Harris today.

    One more thing!!!

    Like everything else, there are lots of Secured Credit card scams out there.  I have attached a link below to the Us Governments Federal Trade Commissions website below that has some great information on scams surrounding these cards.  You may want to check this out before you shop for a card.

    FTC Info On Secured Credit Card Scams

    http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre25.shtm

    Here are some links to some secured credit card options.  Please remember that there are many options, and these only a few, so do your shopping!

    Wells Fargo

    https://www.wellsfargo.com/credit_cards/secured/

    Citi

    https://creditcards.citi.com/credit-cards/citi-secured-mastercard/

    US Bank

    http://www.usbank.com/cgi_w/cfm/creditcards/secured/usb_secured_card.cfm

    Bank Of America

    https://www.bankofamerica.com/credit-cards/marketinglist.action?context_id=marketing_list&category_id=2029

 
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