Do you need to reestablish credit?
If you have bad credit and need to improve your credit scores and reestablish you credit, secured credit cards are the best vehicle to the road for good credit. A bankruptcy or foreclosure can easily plummet your credit scores by 150 points or more. One late payment will drop your scores by at least 40 points. A late mortgage payment will drop your credit scores by at least 70 points. A recent collection account on your credit report will drop your credit scores by 60 points or more. Each hard pull credit inquiry will drop your credit scores by 2 points.
If you have bad credit or no credit, it is time for you to reestablish your credit. The easiest and fastest way to reestablish your credit and boost your credit scores is by getting secured credit cards.
Why secured credit cards?
Secured credits cards are credit cards that requires the credit card applicant put a deposit in an account set up by the secured credit card company and the secured credit card company will grant credit equal to the amount of the deposit. In the event the secured credit card holder defaults with his or her monthly payment, the secured credit card company has collateral with the deposit and sustains no loss.
Re-Establishing Credit With Secured Credit Cards
Secured credit cards are a great way to establish new credit. For those who have had a bankruptcy, foreclosure, judgments, tax liens, and late payment histories, they will likely find it rather difficult in obtaining new credit. They need to reestablish credit and the chances are next to nothing to get an unsecured credit card. By getting secured credit cards, they will be able to establish credit and as time goes by, their credit scores will increase.
Secured credit cards report the card holder’s payment history to all three major credit reporting agencies. If you are late with your monthly secured credit cards payments, you will hurt your credit scores.
Where can I get secured credit cards?
There are many secured credit cards available either at your local bank or via an internet search. You can apply for secured credit cards here at www.gustancho.com or another great place you can get a selection of recommended secured credit cards is at Credit Fix Advisors . Secured credit cards are the best tool for establishing credit and improving your credit scores.