A common question that I come across when working with secured credit cards is, “Will a secured credit card help boost my credit score?”  While the answer is most likely yes, it will all depend on how you use the credit card and what type of card you apply for.  I’m going to show you a few things you can do in order to get your credit score back to a perfect number.

First off, what is a secured credit card?

A secured credit card functions just like a credit card but instead, you’re going to be asked for a deposit before you can open up your account.  Whatever you deposit into your account will determine your credit limit.  For example, if you deposit $500, your credit limit is going to be $500.  Credit card companies will do this so that if you don’t pay your bill off in time, they can simply dip into your account and withdrawal your funds.

How do I find a secured credit card that will help me?

All secured cards aren’t created equal.  Instead, you’re going to have to do research when you’re looking for the perfect card.  Make sure that when you apply for card that you look for the following features –

  • Major logo:  Always make sure that the card you want has a major logo such as Visa, MasterCard, etc.  If it doesn’t, it may not boost your score.
  • Reports to the bureaus:  Always make sure that the card reports to the three major bureaus.  If the card doesn’t, it’s going to be pointless.  You want the credit card company to report all of your histories to the major credit bureaus like Equifax, etc
  • It’s for a legit bank:  Never get a card from a place you’ve never heard of.  If you’re unsure of the bank, make sure you check with the BBB to make sure there are no complaints for that particular bank.  If there is, I would steer clear.

I have a great credit card now, how will it boost my score?

When you finally find a card that suits your needs, you’re going to want to use it as if it’s a regular credit card.  This means you’ll want to pay your card off in full on time all the time.  If you can’t discipline yourself to learn these techniques, I would advise that you don’t use a credit card anymore.  Instead, even if you can’t pay the full payment, try and pay the minimum at least.  Over time, you will slowly see your credit score rise.