Many of us know what the term credit card means but do we know what is meant by an unsecure or secure credit card? A lot of people are oblivious to these terms.
You see having one of them can actually increase your credit rating and tons of people do not know that.
What you need to do is apply and get secure credit cards instead of unsecure ones.
The Visa or the MasterCard you probably have your in your wallet is unsecure.
Most credit cards are unsecure.
If you want a secure credit card, you have to get one through your bank.
They will assign you a secure credit card.
Now what's the difference? A secure card is harder to get and therefore not many people have it.
You are given a set low limit depending on your credit history.
This low limit could be as low as $200.
The point being that the bank cannot risk handing you a $10 000 secure line of credit because if you don't pay it back the bank itself is partially liable for it.
Therefore, they only give out amounts after doing a thorough check on your credit and only grant you a low amount hence reducing their risk.
Now how does this increase your credit score? Well, the credit agencies when they see these secure credit under your name, they take the bank into consideration that gave you the loan.
Credit agencies trust banks more then they trust you so automatically you get a boost in your credit scores by at least 10 points per secure credit loan.
The benefits of having a higher credit score are really countless.
I mean you can get more secure lines of credit, get low interest rates, longer interest free promotional periods and etc.
So if you aren't already you should start working on increasing your credit score so you can save money.