just recvieve 2 secured credit cards?

Question

I am trying to rebuild my credit so i can buy a house after school. Now that I have the cards, what are the next step...i know activate it(lol) but what should i do in order to allow this to help me.

unsecured cards.

Answer 1

You have the cards now, but no history. With no history the fact that you now have cards means nothing.

To get a history you need to responsibly pay your bills on time for a year. Even after 6 months of this you will start to be able to get some store cards.

Eventually try and have 4 lines of credit open - the lines of credit can be either loans or credit cards. Maybe a car loan, maybe after 6 months try for something like a walmart card or a gas card. Befor a financial institution will trust you with a lot of money, they want to check your credit and see a history that includes at least 4 financial institutions saying that all your bills are paid on time.

Don't spend more than a third of your limit. In other words if one of your cards is a $600 limit, never have more than $200 out on it at one time. Secured cards have high interest rates, so I would not reccomend having much out on them at all.

Don't not use your cards - this actually lowers your score. Use the cards at least once a month and promptly pay the bill on time.

After a year, see if you can get some normal unsecured cards. If you can get approved for the better cards, cancel the secured cards - don't just cut them up. You have to call them them up and make sure they are canceled.

Check your credit reports every year and make sure that everything is accurate.

Answer 2

I'd say the first step is to get rid of one of them, the one with higher running costs. Second step is to remember to always pay the bill when it is due, never leave it unpaid, never ever. If you have no money to pay for it, don't buy but work harder. That's it.

RE:
Just recvieve 2 secured credit cards?
I am trying to rebuild my credit so i can buy a house after school. Now that I have the cards, what are the next step...i know activate it(lol) but what should i do in order to allow this to help me.

Answer 3

Use them sparingly, keep a small balance of say, $40. If you spend $150, immediately pay $120 or so. Credit card companies don't like it as much when you pay it off entirely and carry a zero balance. But you don't want to carry more than you could easily pay off, and you don't want the interest to kill ya. If you have two cards- maybe put one away to be used ONLY for emergencies. Car breaks down, emergency trip, stuff like that

Always pay on time, never miss a payment, and your credit rating will rise.

Answer 4

Always be careful to make your payments on time and try to do this over an extended period of time. The reporting of the credit card company into the credit bureau will likely enhance your credit score and will ultimately help over time.

Answer 5

pay off your balance monthly and keep that going... don't use your card on groceries, cause that can get ya in the hole. Mostly use it like the cash you have say you got 100.00 put that 100.00 in the bank use your card and when you get to that 100.00 go online and pay that 100.00. After 2 years they say if you keep your balance very low your credit score will be perfect. Oh and only use one card... activate both but only use one. The interest you will have to pay but... what ev. you gotta spend some money to prove to everyone that you have money. I hope this helps

Answer 6

You have to use the cards to show payment history. Otherwise, creditors will have nothing to make judgment upon. It would still be like having no credit, if you don't use them to create a payment history.

Answer 7

Use them each month, but only charge minimal amounts. When the bill comes, pay it off each month. That way you are creating a positive credit record.

If you charge too much and pay only the minimum, it works against you.

Answer 8

my advice only use a credit card in emergencies believe me its easy to use a credit card all the time and max it out but its 100 times harder when it comes to paying it back.

Answer 9

use it and make your monthly payments. when you build some established credit apply for better cards. don't close any of your credit cards so you don't lose any history. with that you will build a credit report.

Answer 10

I'd say the first step is to get rid of one of them, the one with higher running costs. Second step is to remember to always pay the bill when it is due, never leave it unpaid, never ever. If you have no money to pay for it, don't buy but work harder. That's it.